Farm and Agricultural Insurance

Farms are one of the most important industries in the nation. They provide food for residents here and abroad. Operating a farm involves a lot of hard work and, like any other business, it's not without its risks.

As the owner of a farm, you can protect yourself, your family, and your business with farm insurance, and an independent insurance agent can help you find the right policy. They'll make sure you get matched with all the coverage you need for your unique farm. But first, here's a closer look at farmers insurance coverage and why it's necessary.

What Kind of Insurance Do Farmers Need?

Many Americans who work for corporations have benefits packages that include important features such as retirement savings plans and insurance plans. If you own your own business, you must purchase these policies on your own.

Additionally, some personal farmer insurance plans to consider include:

Life insurance: As the owner of a farm, you want to be sure that your family will be able to afford to maintain your property if you pass away unexpectedly. A life insurance policy can provide your loved ones with the financial security they need to carry on the family business in your absence.
Health insurance: Owning your own business means you must secure your own healthcare policy, too. If you become sick or injured, health insurance can help provide the funds for your medical treatment, so you can get back to maintaining your business. You can also look for a health plan that includes dental coverage.
Disability insurance: If you become severely disabled in an accident and are unable to work, you and your family may face severe financial challenges. Disability insurance can help you maintain an adequate income while you are unable to work.
Car insurance: While you can insure your farm vehicles with a commercial auto insurance policy, your personal vehicles that are not used for farm business must be covered by a personal auto insurance policy.

An independent insurance agent can help you find all the right kinds of personal insurance you need as a farmer.

Liability Insurance for Farmers

As with any business, farms face liability risks. You can purchase a business insurance policy that meets your farmer liability insurance coverage needs. Common coverage options include:

General liability insurance: If a visitor to your farm is injured on your land or in your home, you may be liable for any resulting medical costs. If you frequently host tours of your land, or if you have an on-site market for your goods, farm liability insurance is especially critical. This coverage can pay for costs associated with third-party claims of bodily injury or personal property damage.
Product liability insurance: This coverage can reimburse you for lawsuit costs and other expenses if the food or products sold by your farm cause illness or injury to third parties.
Workers' compensation insurance: This coverage is often required by law, but the specifics depend upon your state regulations and the number of workers you employ. Farm businesses are not always required to have workers' compensation coverage for employees, but if a worker on your farm is injured on the job, this insurance can cover related medical bills.
Commercial auto liability insurance: You can insure all your farm vehicles on a single commercial vehicle insurance policy. This coverage can protect you from liability risks if a driver of one of the vehicles injures or causes property damage to a third party.
Non-owned or hired auto liability insurance: If your employees use personal vehicles to perform job duties, or if you hire someone to transport farm goods, your farm can be held liable for damages if that person is involved in an accident. This insurance provides coverage only when the vehicles are being used for farm business purposes.

In all instances listed above, your liability insurance also includes compensation for legal fees associated with a covered incident that results in a lawsuit. An independent insurance agent can help ensure you're equipped with enough farm liability insurance.

Business Property Insurance and Asset Protection for Farmers

A complete farm and ranch insurance policy also provides you with coverage for loss or damage to your farm’s property and assets. Consider adding the following coverage to your policy:

Homeowners insurance: You need protection for your business and your personal residence, whether it's located on your farm or not. In many cases, farm insurance policies permit farmers to insure their family home in their business insurance policies. This can save you money on your home and contents insurance coverage.
Farm equipment insurance: This specific type of farm property insurance can provide comprehensive coverage for your expensive farm equipment, such as tractors, threshers, and combines. If your equipment is damaged by fire, falling objects, or natural disasters, you can replace it without suffering a large financial loss.
Farm structure insurance: Your farm insurance policy should provide structural protection for various elements on your land, such as barns, silos, pens, chutes, dairy parlors, confinement facilities, and corral fencing. If these structures are destroyed in a covered catastrophic event, you will have the necessary funds to rebuild.
Livestock insurance: If your farm keeps livestock such as cows, sheep, goats, or swine, you can purchase coverage to replace the animals if they are killed by a covered event, such as an accidental shooting, electrocution, severe weather, or problems during transport.
Crop insurance: This coverage provides reimbursement if you lose a large portion of your crops due to uncontrollable events such as wind, drought, hail, or extreme temperatures.
Loss of income insurance: If a covered event forces you to temporarily cease operations on your farm, this insurance can provide you with a continuation of income to make monthly payments and pay employee salaries.

Your independent insurance agent will help you complete your farm and ranch insurance policy with as much coverage as is necessary for your unique business and its operations.

How Much Does Farm Insurance Cost?

The cost of your policy can depend on many different factors, including the type of farm operation you run. Hobby farm insurance or niche/small-scale farming insurance can be much cheaper than the coverage required for larger or commercial farms.

Small farm insurance can cost an average of between $500 and $3,000 annually. Here are some average costs of insurance by farm type:

Hobby farms (i.e., farms less than 10 acres): $500-$2,500 annually
Small farms (i.e., farms less than 100 acres): $2,000-$3,000 annually
Mid-size farms (i.e., farms ranging from 100-500 acres): $2,500 and up annually

An independent insurance agent can help you find affordable farm and ranch insurance near you. They can also help you find and apply any discounts you may qualify for to reduce your premiums as much as possible.

Here's How an Independent Insurance Agent Can Help

When it's time to get the right coverage for your farm business and its operations, no one's better equipped to help than a local independent insurance agent. These agents have access to multiple farm and ranch insurance companies, so they're free to shop and compare several quotes and policies for you.

They'll get you matched to the agricultural insurance policy that offers the best blend of coverage and cost. And down the road, your agent can help you file claims and update your policy as necessary.

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