Farm insurance is a package insurance policy that covers a wide range of things on and around your farm business. It can be as you need and as you want to fit your needs.
General liability, for example, covers accidents that occur to people on your property coverage or while you conduct farm business off of your land. It also includes coverage for the buildings on your property that you use for farm business, including garages, sheds, barns and other structures.
1. General Liability
Farm liability coverage is an important component of any farm insurance policy. It protects you from claims of property damage, bodily injury, and legal defense if you are sued for causing an accident on your farm business.
This coverage pays for medical expenses, as well as loss of income if you’re unable to work because of an accident that occurs on your property. It also covers the cost of replacing your property if it’s damaged or destroyed.
The best way to ensure your general liability coverage is adequate for your farm is to maintain good communication with your agent. That means keeping in touch with them when you purchase new animals, buy new equipment, or make changes to your structure.
For example, if your livestock will be used at 4-H shows, plowing matches, fall fairs, and other agricultural events, you need to inform your agent about the costs associated with these events.
It’s also important to know about coverage exclusions. For instance, your general liability policy might not cover you if you spray a restricted use pesticide without the appropriate training and certification.
2. Property Coverage
Property insurance is a critical part of any farm insurance policy. It provides protection against a variety of perils, including fire, windstorm and hail, to your property and any structures on your property.
This insurance can also protect you from liability claims if someone gets hurt on your farm, even if it’s not in your care or control. This includes people visiting your farm to do business, like salespeople or truck drivers, or trespassers who come onto your property uninvited.
Another important piece of property coverage is crop insurance, which helps cover losses from certain weather conditions, such as hail and windstorms, that can damage crops. Crop coverage is often included in a general farm insurance policy, but it can be purchased separately to meet your specific needs.
You can also get personal property coverage, which provides protection for your belongings inside and outside of your home, porch or deck. This coverage is similar to a typical homeowners policy in that it sets limits on a percentage of the replacement cost for your property.
3. Equipment Coverage
Equipment insurance can be a valuable tool to help protect the equipment that keeps your farm running efficiently. This includes tractors, combines, forage harvesters, planters, field equipment and tools used to keep the farm working.
If something happens to any of your equipment, you can file a claim and have the insurer pay for the replacement value of that item. It’s important to ask for this type of coverage, as it can save you a lot of money in the long run.
This insurance protects your equipment against damage caused by fire, theft, vandalism and accidents. This type of insurance is available with both blanket and scheduled policies.
It’s important to update this coverage each year as you change your farming operation. This includes adding new animals, purchasing new equipment or retiring old equipment.
You can also insure your equipment against specific perils, such as water damage, overturning or falling down a hill. It can be a good idea to work with an independent agent to find the best policy for your needs.
It is important to remember that most policies exclude coverage for fieldwork done over bodies of water, such as lake, river or stream. However, some insurers will write specialty policies that cover this type of activity.
4. Worker’s Compensation
Worker’s Compensation provides medical expenses, lost wages and rehabilitation costs to employees injured or ill “in the course of employment.” It also pays death benefits to families of employees killed while working. This type of insurance can help keep your business’s claims volume low and reduce costs over time.
As an employer, it is critical to understand the requirements and rules that are in place for workers’ compensation on your farm. Each state has a different approach to the issue, and it’s important to understand what your legal obligations are to your workers if they get hurt or are killed while at work.
In addition, if your farm hires independent contractors, it’s important to ensure that the workers have Worker’s Compensation coverage so that you can pay them medical bills and wage loss in the event of an injury.
Workers’ comp can be confusing to navigate, so it’s best to consult with a skilled attorney who specializes in farm injuries and accidents to help you make the right decisions for your farm. It’s also a good idea to find out the statute of limitations for filing a workers’ compensation claim. Failing to meet the deadlines can lead to a claim being denied.
5. Auto Coverage
Auto insurance is one of the most widely used types of personal insurance. Policies are negotiated on a case-by-case basis to determine an individual’s risk and cost, then paid out in the event of an accident.
The most common car insurance coverages are liability and property damage, which pay for the costs of damages incurred by other drivers in an accident. In the United States, drivers are required to carry a minimum amount of liability insurance to drive legally in most states.
Farmers offers an extensive list of add-ons that can be added to their car insurance policy. The insurer also offers gap insurance, which protects a driver financially in the event their vehicle is damaged prior to the car’s lease or loan being paid off.
A Farmers Farm Package Policy includes a variety of additional protections, including crop insurance and livestock coverage. This optional coverage pays for lost crops when pre-specified conditions are met, as well as provides increased limits for borrowed machinery.
In addition, farmers can add coverage for leased workers. This can help ensure that if an employee is injured while working on the farm, coverage will be available.
6. Crime Coverage
Crime insurance, also known as fidelity or employee dishonesty coverage, is designed to protect your business from losses related to theft, fraud, forgery and burglary. It can be purchased as a standalone policy or added to your commercial business package.
A business crime insurance policy will cover losses incurred by your business for direct loss of money or securities as a result of theft, fraud or computer crime (including funds transfer fraud). These are risks that a traditional fidelity bond can’t adequately address, so it’s important to consider this option.
This type of coverage can be written on a first or third party basis and can be more specific than just covering all your clients. It’s a common coverage for contractors, IT services and others who have employees who will be on their client’s property.
The cost of this coverage will vary depending on the specific limits you want and the level of protection desired. It’s a good idea to speak with a financial advisor to get an accurate quote.
7. Loss of Use Coverage
Loss of Use Coverage is a coverage that pays for additional living expenses in the event your home becomes uninhabitable due to a covered peril. It’s sometimes called additional living expenses (ALE) insurance or Coverage D in insurance-speak, and it can be added to a homeowners or renters policy.
What Does Loss of Use Coverage Pay?
This coverage reimburses you for expenses related to temporary living arrangements, such as hotel stays, rental properties and meals. The amount you’ll be reimbursed for depends on your situation and the size of your home, but it should usually be enough to match your current standard of living.
How Long Does Loss of Use Coverage Last?
Loss of use coverage typically remains active for up to 12 or 24 months, depending on your specific insurer. It will help pay for extra costs, including lodging, travel and meals, when you can’t live at your home due to a covered loss like a fire or hurricane damage.
What Are the Best Ways to File a Claim?
It’s important to start a claim for loss of use coverage as soon as possible after a covered loss. This is because insurance companies can be overwhelmed with claims in the wake of a major disaster and may settle your claim more quickly if you submit it early on.
This coverage typically does not require a deductible, but it’s a good idea to keep all receipts for the additional living expenses you incurred during your stay away from home. This can help you document the expenses you incurred and will give you a clearer picture of what you lost.