What You Need to Know About Farm Insurance


Farming, whether it’s crop cultivation or animal rearing, can sometimes be a risky business. As a farmer, you need to protect your investment and source of livelihood by taking out a farm or ranch insurance policy. A comprehensive farm insurance cover is one of the best risk management tools that an agricultural farmer can have.

Farm insurance can help you recover from unexpected losses such as those caused by diseases, pests, and adverse weather conditions. Depending on the scope of cover, the insurer may also protect your business from personal injury and property damage lawsuits from workers and third parties.

Should You get Farm Insurance?

Many homeowners and farmers often confuse homeowners insurance and farm insurance. Although both types of covers share some fundamental similarities, such as compensation for property damage, homeowners insurance, and farm insurance are quite different when it comes to the terms of policies. The circumstances of the covers and claims also differ.

However, many insurers combine homeowners insurance and farm insurance into one package since most farmers often work and live in their ranches and farms. This may be the reason why some people think that both covers are the same thing or refer to one when meaning the other.

So how would you determine whether you need farm or ranch insurance? Well, here are three crucial questions that you should ask yourself.

  1. Do you have active agricultural structures in your estate (silos, mills, barns, stables, etc.)?
  2. Do you keep animals or grow cash crops on a large scale?
  3. Have you employed workers to tend to your land or animals?

If your answers are “yes” to any of these questions, then you might need farm insurance. Taking out a farm insurance policy is no different from other types of insurance. An insurance agent will evaluate your property and enterprise to asses the risk potential, after which you’ll draft the terms of the agreement and begin paying annual premiums. It’s that simple.

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