Farmer Insurance - Dont Bet the Farm, Shield Yourself

By: Brooke Hayles

Farming is a massive operation. Having farmer insurance is most necessary when you consider all the risk involved in owning and running a farm. Farm insurance can help protect you from the loss of a bad crop or the unforeseen disaster of the loss of a heard. Tragedy strikes at inconvenient times, but thankfully there is protection available.

Regardless of whether you inherited your farming business through your family, or decided to take the plunge and start a farm, the costs involved are enormous and the loss of a crop due to frost or hail can be devastating. Farmer insurance acts as protection against complete financial ruin if the unforeseen happens. Not only are crops and animals at risk, but the equipment needed for operation is also very costly. The term 'farming' encompasses many types of farm operation; thankfully there is farmer insurance available for each source of revenue.

Farmer insurance covers many potential incidents. Not only does it cover many accidents that may occur on the farm, but it guards against possible litigation. For instance, a consumer could purchase a jar of your jam, get ill and then decide to sue your business. Farmer insurance not only helps cover you in this instance, but will represent you in court if need be. A common policy coverage also involves accidents while operating your farm equipment or performing farming duties. When you stop to think about it, there truly are many ways that a farm is endangered to liability.

Available Farmer Insurance

Before choosing farmer insurance there are factors that must be considered. The most important issue is the type of farm that you operate. Also, how is business commenced? It may be best to write a list and include how many people you employ, the amount and types of equipment that need to be insured and possible liabilities that worry you. The following is a general list of items that need to be insured when operating a farmer.

Crop Insurance: Crop-yield and crop revenue are big concerns to farmers. Since the outcome of the crop determines the livelihood of the entire farm, coverage for the crop is paramount. Farmer insurance generally covers loss due to natural causes. This may include bugs, pests and hazardous weather.

Farm Contents: Most farm equipment is quite costly and can run into the hundreds of thousands. You will want insurance that lists specific equipment individually and provides comprehensive coverage for your equipment. Some policies also cover loss of livestock because of electrocution.

Theft: Theft coverage is not limited to stolen machinery. Often time's theft on a farm involves livestock including cows, sheep, goats and hogs.

Employers Liability Insurance: If a farmer has one employee, he or she will need liability insurance. The employee needs not to be full-time, they can be an occasional work-hand, but accidents happen and this insurance will cover many potential liabilities.

Fatal Injury of Livestock: Many companies offer farmer insurance that covers the loss of an animal either while on the farm or even while in transit. If an animal dies coverage generally is available for a maximum amount per animal and a maximum per accident. Even working dogs, such as herding dogs, may be covered if fatally injured.

Sheep Coverage: This item helps to cover veterinary bills and loss of sheep due to injury or death.

Business Disruption: Farmer insurance will help protect a farmer when business costs either increase dramatically or profits are suddenly down due to unforeseen incidents.

Shipment of Goods: Your strawberries are safely on their way to market and boom, they're gone. A loss of income due to crop damage while in transit is protected with this coverage. Loss of livestock is not covered under this coverage since animals are covered separately.

Personal Accident Coverage: If an accident that leads to injury occurs on a farm, this coverage protects against this. As a farmer you are entitled to a settlement if an injury occurs that effects your ability to run the farm as needed.

Personal House and Contents: The farmer's residence and any additional buildings are covered. If specifically stated, the contents of the home may also be covered.

Summary:

When the protection of farm equipment, livestock and crops are in question, Farmer insurance must be purchased. Farmer insurance will safeguard against financial ruin due to unforeseen occurrences. Common coverage includes loss of income due to theft, crop failure and the death of livestock. A farmer's personal home and contents are often included with this insurance. Farming is an important line of work and there is insurance available to help protect not only the farm, but the owner.

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