When starting a farm, your main concern may rest with the acquisition of your land, equipment and other means of beginning your business, and once you’ve started you may find yourself preoccupied with sales and the continuing operation that is your working farm. But what happens if a fire breaks out? Or your equipment is stolen? Even a natural disaster can wreak havoc and cost you thousands of dollars in repairs, replacements and in crops lost. When it comes to protecting your farm, you will want to do more than just making sure that your equipment is kept up and that you’re running on schedule. Insurance can help cover costs of disasters, mishaps and other things that may befall your business and can help keep you from going under.
Some people may think that such circumstances are few and far between, but it is almost impossible to know for a fact what may or may not happen. In the event that something does happen, though, and your farm is not covered, then you run the risk of having huge bills to pay that can close the coffin on your farming business for good.
Many people think that their homeowner’s insurance policy will cover their farms as well – it’s their land after all, right? But farming is a business and any business related accidents, mishaps, or other incidents are a different story entirely.
There are many things to consider if you run a farm, small or large. If you have a relatively small farm, you may simply need to adjust your homeowner’s insurance policy by replacing it with a farm owner’s policy that will cover both your residence as well as your farm related equipment and agricultural outbuildings. You may also want to include some liability coverage as well in the event that a non-employee gets hurt on or around the farm or during some kind of local event like a festival or the farmer’s market.
Additionally, you can choose to supplement a basic farm and choose which kinds of coverage you may need depending on what possible circumstances apply to you and your area. Crop insurance is now available to both large and small commodity farmers, providing policyholders with the opportunity to insure up to 85 percent of their revenue against crop failure and drastic fluctuations in the marketplace. Depending on whether you live in a high-risk area you may also want to consider flood insurance. Most farm-owner’s coverage policies include tornado and and wind insurance but it really depends on your state/area so it always helps to ask beforehand. If liability insurance is not already part of your policy, you will want to make sure that it is included, but it will not cover the expenses of workers such as medical bills or wages in the event of an injury.
Before buying any kind of policy, you will want to discuss and disclose everything with your agent, and we here at Dempsey Weiss & Associates are more than willing to listen and help you every step of the way. When it comes to determining what kind of insurance you need for your farm, you will need to consider all operations of your business, the inherent risks of your practices and your location as well as how much you are capable of recovering from and and what it would take to land a considerable blow. Discussing all details and options with an experienced agent is best, so feel free to ask us any questions when it comes to choosing an insurance policy or adjusting a current one.