If you are a farmer, checking your farm owner’s liability insurance policy is something you need to do periodically. There are many reasons to check your farm policy, but the biggest one is the fact that many farmers risks are always changing. When you make more money, you buy more usually need to purchase more farm equipment, when you buy more farm equipment; the total farm assets you own can increase significantly. If your total farm assets have increased, but you haven’t increased the limits on your insurance policy, this means you have gaps. If a gap is exposed by an unfortunate event, you could be paying thousands out of pocket in liability damages.
Other reasons to review your current insurance:
- If you have built a new barn
- Purchased a new tractor
- Have additional livestock
- Purchased additional land to grow extra crops
- Have added a new line of business to your business such as direct client sales
- If you have created a niche farm product that you are now selling to the public
- If you are letting other people on your property
All farms do not have the same needs! Different farms have different needs; it depends on what type of farm you are. Some farms are crops only. Some are livestock only, and some are a combination of the two. Other questions to think of to help you with the insurance needs of your farm depends on the types of equipment you will be using. Will you allow clients on your premises? Do you have any free-roaming dogs on the property? Is there a deep pond on your land?
Being handed the family farm, or creating your own family farm is a special thing. If you aren’t properly insured, and let’s say a worker of yours gets seriously injured, or your dog bites a child that accidentally came on your premise or even worse, a worker is permanently disabled as a result of working on your farm equipment. If you do not have adequate coverage anymore because you have checked it in a while, you could be sued. The victims and their family could come after the farm, or win a large settlement claim against you that you were not prepared for, thus putting the future of the farm in serious jeopardy.
All it takes is about 10-20 minutes to sit down and read the “Dec Pages” of your farm policy. There, you will be able to see the overall limits of liability you have. Next, you should ask yourself three questions when determining if an insurance increase is needed:
1. Is my total insurance liability coverage anywhere near the total of my farm, including all the equipment, crops, land and/or livestock?
2. If I were to get injured on the farm and was disabled for a time, would my insurance help provide me funds to keep the business going until I recouped?
All these risk factors may be a cost of doing farm business, but they are all insurance risks that need to be covered by a farm owner’s insurance policy and they can be covered too. Any of the above could happen or happen in conjunction with one another, exposing you to serious financial risk, short and long-term. Don’t assume you have to tackle reviewing your farm owner’s insurance policy alone either. The experts at Dempsey Weiss & Associates Insurance, understands these issues and can review your policy with you, educating you instead of trying to sell you. They want to empower you to make your own informed decision