Farming is a dicey business. From the good and bad times of the market to the potential for disease and cataclysmic events, farmers need to have some risk management tools to safeguard their investments. Farm Insurance is one of the most common risk management tools agriculture business and farm owners take advantage of.
Farm Insurance: What is it?
Farm Insurance (also called as ranch insurance) protects you, your home and your livestock or agricultural operation. It is a combination of a standard homeowners’ policy and a commercial insurance policy.
3 Factors to Help You Decide Whether You Need Farm Insurance or Not
Whether you need farm insurance or not is a tricky question. To help you decide if you need a farm or ranch policy, here are three important factors. If you answer YES to any of the factors below then you likely need a farm insurance policy.
- Additional Structures: Are there additional structures on your farmland, other than a garage or a pool? Are you using a small building, like a greenhouse, to grow crops or plants for sale? If YES, you may need a farm insurance policy.
- Types of Animals on The Farm: Do your farm have something other than a cat or dog? Many farmers have animals or pets on the farmland but what types of animal you have, and especially what you do with them helps determine if you need a farm insurance policy. Stabling a few horses can create a business exposure to the policyholder – a situation that may call for farm insurance.
- Workers on The Property: Does anyone work on your farmland? Whether they are tending to livestock or harvesting agriculture, they are a liability since they are performing job on your farm – you must go for farm insurance.