A farm is a business just like any other. But unlike other industries, a farm’s production yield is paramount to its success or failure. Dozens of hazards can damage property, interrupt production and destroy product yield. Farmers need to be able to recoup their financial losses if they are going to thrive as a business. Tailored farm insurance benefits can help. 

What Is a Farm Insurance Policy? 

A farm insurance policy is a collection of insurance policies and endorsements to help provide financial protection from the perils and risks a farming operation faces. It’s a contract with an insurer that provides coverage according to the policy declarations in exchange for premium payments.  
 

What Kind of Insurance Does a Farmer Need? 

There’s no one-size-fits-all answer to the type of insurance coverage every farmer needs. It’s crucial to work closely with an experienced insurance agent who has access to reputable insurers to create farm insurance coverage that meets the specific needs of a farming operation.  

 

What Does a Farm and Ranch Policy Cover? 

A common misconception about farm insurance is that it provides a bundle of predetermined coverage, but this isn’t the case. Basic farm coverage generally includes coverage for property and liability. But because farmers have so many different aspects to their businesses, they need custom policies that address their many operational challenges.  

To achieve the personalization that farmers want from their insurance, they can choose from numerous types of coverage. A comprehensive farm insurance package may include any of the following: 

• Crop insurance—This type of insurance replaces income when farmers lose crops due to weather, fires and other hazards.
• Farm livestock insurance—This coverage helps farmers recover costs related to the loss of animals.
• Equine insurance—This coverage insures horses against death, injuries and other risks.
• Farm equipment insurance—This coverage helps pay for essential assets such as pumps, rakes, sprayers and other tools when they are damaged.
• Tractor insurance—This protects tractors against damage or other losses.
• Farm dwelling insurance—This policy covers homes for those farmers who live on their farms.
• Farm structures insurance—This coverage insures barns, grain silos and other property.
• Commercial auto insurance—This policy covers vehicles owned by the farm or used in its operations.
• Farm liability insurance—This coverage helps farmers repay various people, including clients, from bodily injuries or property damage suffered during farming operations.
• Umbrella insurance—If a claim exceeds standard liability limits, umbrella liability coverage can help cover the remaining costs.
• Workers’ compensation insurance—This coverage pays employees a supplementary income if work-related injuries or illnesses force part- or full-time employees off the job.

 

What Does Farm Insurance Cost?  

To ensure a farm’s success, farmers must maximize production and minimize financial liabilities. A farm insurance policy is a critical part of this success, but it needs to be affordable—not a financial burden on top of other overhead expenses. The ultimate goal is to get the right benefits at an affordable price.  

The Mike Dyer Agency is committed to helping farmers obtain the optimized farm insurance needed ensure secure farming operations. To get started, call us at 865-966-2111 today.