Farm Insurance Information
Farms can be rewarding businesses, but they are consistently one of the most dangerous in the United States. Farmers must understand the risks and exposures within their daily operations. Heavy machinery, moving vehicles, livestock, working at height and sharp objects all present significant perils. Without implementing and maintaining good loss control practices, such as a comprehensive insurance portfolio, your farm’s future could be in jeopardy.
What Is Farm Insurance?
Although some insurance companies may offer specific packages for farms and ranches, in many cases, the term farm insurance refers not to a single policy but rather a collection of coverages. Regardless of how you put together your farm’s insurance portfolio, it’s generally advisable to ensure that it includes the following:
- General liability insurance—If a third party, such as a guest or customer, is injured on your premises or accrues property damage for which you were responsible, this coverage can help pay for resulting losses.
- Dwelling coverage—This coverage can provide financial assistance if your farmhouse or dwelling, including its physical structure and contents, are damaged.
- Other structures coverage—This coverage can help you recoup losses if structures other than your residence are damaged, including barns, sheds and detached garages.
- Workers’ compensation insurance—If employees on your farm are injured on the job or develop a work-related illness, this coverage can help pay for their losses, benefits and legal costs if there is a lawsuit.
- Equipment breakdown insurance—By including this type of coverage in your portfolio, you may be able to receive financial assistance to recoup lost income and repair costs arising from machinery or tools breaking down.
- Livestock insurance—If your livestock are injured or killed, this coverage may help your farm recoup its financial losses.
- Crop insurance—This coverage can provide financial assistance if your crops are damaged or destroyed, such as by hail, windstorms or insect infestation.
- Commercial auto insurance—This coverage can help pay for damages arising from incidents involving your farm’s vehicles, such as repair and replacement costs, or third-party losses for which you were liable.
- Products liability insurance—If your farm is found to have sold goods or products that were defective, spoiled or otherwise caused harm to others, this coverage can help insulate you from losses.
How Much Does Farm Insurance Cost?
Insurance companies must conduct a comprehensive analysis of your farm before providing you with an accurate quote for suitable coverage. In general, this process may include analysis of the following criteria:
- Workforce size
- Assessed value
- Policy details (e.g., types of coverage, deductibles, coverage limits)
- Prior claims history
Get the Right Coverage
Regardless of how experienced your farm’s workforce may be or how careful you are in maintaining a safe workplace, it may not be possible to prevent all accidents or errors. In the wake of an incident, inadequate insurance can lead to out-of-pocket costs that could have irreparable ramifications for your farm, finances and future.
We’re here to help. At ISG Insurance, our agents have the experience and knowledge to help farmers in Knoxville and Clinton understand their coverage needs and address them with optimal policies. Contact us today to get started.