4 Important Coverages to Have on Your Farm & Ranch Insurance

If you’re like most people, you insure every part of your life — your home, your vehicle, your health, etc. So if you’re a farmer or rancher, it’s only logical to insure your business as well.

But the world of farm and ranch insurance is much more complex than you might think. Each person’s exact coverage needs are different, but generally speaking, the following four are essential.

1. Liability Coverage

When you think of farm and ranch insurance, you probably think of insuring your crops or property against damage. But like other business owners, farmers and ranchers need liability coverage. This type of insurance covers you if a person is injured (or their property is damaged) while at your farm.

For instance, if a visitor is kicked by one of your horses and needs to go to the hospital, your liability insurance would cover medical bills. Similarly, if you operate a seasonal pumpkin patch and a child gets injured, liability coverage will protect you.

2. Crop and/or Livestock Insurance

If your livelihood primarily comes from the crops you grow or the animals you raise, you need crop or livestock insurance. This type of farm and ranch insurance will reimburse you for some types of losses:

• Losses of crops or livestock due to fire

• Stolen animals

• Animal death or crop loss due to unexpected weather events

• Animals killed or crops damaged during transit

Not all of these policies are the same — some may cover losses that others don’t. Always make sure to carefully read any policy you’re considering before you commit to it.

3. Outbuilding Insurance

You probably already have insurance on your home. But what about your barns, storage sheds, and other buildings? When you have outbuilding insurance, you can be reimbursed if important buildings are damaged and destroyed. Consider outbuilding insurance if you have any of the following:

• Barns

• Stables

• Crop storage sheds

• Structures for cold storage

• Motors, water pumps, and other outdoor structures used to operate outbuildings

Most standard outbuilding policies protect you against a wide range of damage. But many insurers also offer expanded coverage that will reimburse you for additional unexpected losses.

4. Tractor and Equipment Insurance

You rely on your equipment to run your business. So if your tractor, irrigator, or other key piece of equipment breaks down, you need to take action quickly. This type of farm and ranch insurance protects you if your equipment suffers unexpected damage from weather, collision, fire, vandalism, etc.

It’s also a good idea to protect your investment with farm equipment breakdown coverage. This type of policy will pay for necessary repairs if a piece of equipment stops working or needs a new part.

Protect Your Livelihood With the Right Insurance

A comprehensive farm insurance policy can make the difference between financial ruin and staying afloat in turbulent times. And while wading through the world of insurance can feel overwhelming at times, it’s an essential part of protecting what you’ve worked so hard to build.