Farmers: 5 Things to Know About Farm Insurance

Making a living in agriculture can be risky with so many variables out of your control. If you want to run a successful business and protect yourself from financial ruin, farm insurance is something you should investigate. Here are some things you should know.

1. Determine need — A standard homeowner’s policy may not provide adequate coverage if your property meets certain criteria. Value Penguin says some deciding factors include the presence of additional structures on the property like barns or stables, ownership of animals other than domestic pets, and whether you have workers on your farm.

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2. Don’t expect online quotes — Value Penguin says that, unlike most homeowners’ policies or car insurance, you should not expect to get a quick quote online. Any potential insurer will need to personally visit your property to assess your needs.

3. Consider product specificity — While some insurers offer only general coverage for farm businesses, some can tailor policies for specific types of farming, says Jackson NearSay. Customized policies can be written based on specific crops or the types of livestock raised on the property.

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4. Plan for business losses — Most farms are also businesses and at risk of suffering financial losses that are out of one's control. To protect yourself from these losses, you may also want to consider businessowners’ coverage, says Trusted Choice. This coverage can insure you against worker’s compensation claims if an employee is hurt, damage to your commercial vehicles, and miscellaneous interruptions in your business income.

5. Don’t discount hobby farms — Hobby farms are becoming increasingly popular with property owners growing crops and owning livestock but not using it for primary income. According to Hobby Farm, don’t assume that because your farm isn’t a business that you don’t need coverage. Even small farms can be dangerous because of equipment and animals that may not be easily controlled. Talk to your insurance agent to assess your specific needs.

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