Farm Insurance 101: How to Protect Barns, Crops, and Equipment from Covered Perils

Most people know that running a company requires a set of insurance policies uniquely tailored to that business. And operating a farm is no different. A properly insured farm includes various policies that, when purchased together, cover an agricultural operation from a host of perils. Let’s discuss a few of the most common farm insurance coverage.

 

Crop and Livestock

 

Crop and livestock coverage is a type of farm insurance that protects a grower or rancher’s products from perils, such as hail, disease, flooding, death, and disease. Typically, you can purchase federally subsidized multiple-peril coverage or state-regulated private crop insurance.

 

Home and Contents

 

Many traditional farm insurance policies cover your home and its contents, similar to a homeowner’s policy. This makes sense, considering that these policies developed when many still lived on family farms built around farmhouses.

 

Property insurance will typically cover your farm and home in cases of natural disasters, theft, vandalism, etc. Many policies will also insure your outbuildings—such as barns, chicken coops, and horse stables—as well as the equipment housed in them.

 

Machinery and equipment

 

Of course, farm insurance protects machinery and equipment from covered perils. This machinery could include:

  • Tractors
  • Combines
  • Cotton pickers
  • Planters,
  • Field equipment
  • Hay rakers 
  • Portable irrigation equipment
  • Portable structures
  • Fences
  • And more

 

You may also be able to bundle a commercial auto insurance policy with your farm insurance to cover a truck used for agricultural work.

 

Finally, don’t forget to update the equipment listed in your policy yearly. It’s easy to purchase a new planter or combine without considering its impact on your coverage. And if a tornado destroys the barn where you keep those pieces of equipment, you may not get a settlement if they’re not listed on your insurance. So, always keep your policy current.

 

Liability

 

Just like any business, a farm needs liability insurance. This is because people are bound to visit the farm from time to time—friends, family, veterinarians, workers, etc. And liability insurance will cover medical bills and legal fees if they suffer an injury on your property. Of course, this is part of every standard policy because of the risk inherent in agricultural work.

 

Call your Hibbs agent if you have any questions about the various types of farm insurance and how they can protect crops, equipment, and agricultural property.