Farms and ranches are essential businesses that can be both rewarding and lucrative. However, these environments also include many inherent risks and exposures. With that in mind, the owners and operators of farms and ranches should implement robust loss control practices, including a suitable insurance portfolio.
What Is Farm and Ranch Insurance?
Farm and ranch insurance do not necessarily refer to a single policy. Although some insurance carriers may offer prearranged packages covering a farm or ranch for many common incidents, farmers and ranchers may need to compile their insurance portfolios. With an adequate farm or ranch insurance portfolio, policyholders can rely on the potential for financial assistance in the aftermath of accidents or errors.
What Does Farm and Ranch Insurance Cover?
Farmer and ranch insurance offers the following types of coverage:
- General liability insurance—If a third party (e.g., guests, passersby) is affected by an incident for which a farm is liable, this coverage can help pay for resulting losses, such as medical expenses and damaged property.
- Farm dwelling coverage—This coverage can help pay for losses involving the residential portion of a farm.
- Farm outbuilding coverage—This coverage can provide financial assistance for outbuildings on a farm, such as barns, sheds and garages.
- Workers’ compensation insurance—If a farm’s employees are injured on the job or develop a work-related illness, this coverage can provide critical financial aid for resulting losses and expenses, such as medical bills, reduced wages and legal costs.
- Equipment breakdown insurance—This coverage can help pay for repair or replacement costs involving a farm’s equipment. It may also help policyholders recoup lost income related to the breakdown.
- Livestock insurance—If a farm’s livestock are injured or killed, this coverage can help compensate policyholders for their losses.
- Crop insurance—This coverage can provide compensation if crops are damaged or destroyed, such as by fires, drought, insects or hail.
- Commercial auto insurance—If a farm’s motor vehicles are involved in an incident, this coverage can help pay for damages.
Farmers and ranchers should also consult with a qualified insurance professional to identify any unique circumstances or coverage needs that may require additional policies.
Who Needs Farm and Ranch Insurance?
The agricultural industry is one of the most dangerous among U.S. employers. Farms and ranches may include many inherent dangers, including sharp objects, moving vehicles, hazardous substances, livestock and heavy machinery. Even the most experienced and diligent farmers and ranchers may be unable to suppress all perils, such as extreme weather events. A robust insurance portfolio may be essential to protect a farm’s finances and future.
Get the Right Coverage
At Oak Knoll Insurance, our dedicated agents have the knowledge and experience to help farmers in the Wilmington area assess and address their coverage needs. Visit our website or call 815-476-2105 to get started today.
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