Understanding Coverage for Your Agricultural Property
Ranch insurance offers protection for your home, property, and livestock. Much like a traditional homeowners policy, farm and ranch policies can often be customized to fit your needs.
As owners of farms, ranches, orchards, vineyards, and equine operations start offering their products or services commercially, a standard homeowners policy may need more coverage. Consider a farm and ranch policy with additional liability protection from excess claims.
Livestock Coverage
If a guest is hurt by your livestock or one of your animals escapes and causes damage to someone else’s property, you could be held responsible for expensive legal fees. This is why you need adequate liability coverage.
Fortunately, most farm and ranch insurance policies cover animal accidents and injuries. Additionally, some livestock coverage protects against sudden drops in market price for your cattle or other livestock.
A good policy combines property, liability, and livestock coverage into one comprehensive package. It also includes additional coverages for incidental property loss, such as emergency cleanup charges, debris removal, and fire department service charges. Your agent can explain these coverages in more detail to help you select the proper protection for your farm or ranch. They can also explain how blanket and scheduled livestock coverages work, which provides options for adjusting your total inventory limit as your business grows or shrinks. This can help you save money on your premium.
Property Coverage
Homeowners insurance protects your dwelling and personal property against common risks, but a farm and ranch policy offers more tailored protection for specialized property. These policies typically offer a combination of coverages that cover your residence, barns, and structures like silos and sheds, as well as farm machinery and equipment such as tractors.
These policies often provide liability protection up to the policy limits for bodily injury or property damage to other people on your farm or ranch. This coverage is designed to help you navigate costly lawsuits stemming from premise-related incidents.
Because farming is such a dynamic business, you must keep your agent in the loop when adding or removing equipment or animals on your property. These changes could impact your coverage, and it’s a good idea to perform a site visit periodically with your agent to ensure you’re getting the most out of your farm and ranch policy.
Liability Coverage
Owning a farm or ranch takes equipment to grow and care for your crops and livestock. This includes machinery, livestock feed, seeds, fertilizer, animal barns, hay storage buildings, and chicken or hog houses. Most farm and ranch policies offer blanket property coverage, similar to a homeowner policy, or you can schedule specific items with separate limits.
Farm and ranch owners need liability coverage to protect them from claims resulting from their business activities. This may include injuries or property damage to farm visitors, livestock injuries, and product liability.
Moreover, farm and ranch insurance policies typically include standard property and liability coverage. Besides, they may offer a loss of use clause that covers expenses if your farm becomes unusable due to a covered peril. Consider discussing this coverage with your agent to add it to your farm policy. It can provide great peace of mind if an unexpected event occurs.
Business Interruption Coverage
Keeping your farm or ranch operating smoothly is vital to your livelihood. With proper ag-based coverage, you can ensure your operation is protected against unforeseen damages.
Commercial Property Insurance safeguards buildings, products, and equipment on your farm from common perils like fire and theft. It also protects your business from financial losses, such as the cost of relocating to a new workspace, which a disaster could cause.
Business Interruption Coverage (sometimes called business income and extra expense insurance) offers substantial benefits for companies temporarily closing their doors to repair or replace damaged equipment or structures. It helps you continue paying your regular expenses, such as payroll, rent, and taxes, while you wait to reopen for business.
Crop losses due to weather events, disease, or infestation are another reason to purchase this critical coverage. It will help you pay for the loss of crops and revenue, which can make up a significant portion of your annual income.
