Starting a new farm is an exciting but expensive venture that offers as much risk as it does reward. This is why insurance is recommended for farmers to protect their assets and income in case of a lawsuit or accident. However, not all insurance policies are created equally and it is important to find the right policy for your farm’s needs.

What is Farm Insurance?

Farm insurance is a term used to refer to the various types of business insurance geared to specifically cover the unique risks faced by farms and everyone involved with them from owners to farmhands to visitors.

Important coverage options often available include:

Farm Dwelling Insurance

Farm dwelling insurance protects buildings you live in that may be on the farm’s property along with attached structures, such as a farmhouse and rental properties. This insurance helps cover you against loss or damage to your livable structures caused by fire, wind, hail, lightning, smoke, theft, vandalism and more.

Crop Insurance

Does your farm rely heavily on crops for income during certain months out of the year? Damage to or loss of these crops and cause significant financial damage to your farm’s income. Crop insurance offers compensation for crops that are lost or damaged due to floods, hail, drought and other extreme weather.

Farm Equipment Insurance

Farms operate primarily with the use of expensive equipment such as tractors and ploughs. Farm equipment insurance can step in and provide compensation for repairs or replacement if your expensive farm equipment stops working due to sudden breakdowns, fire, bad weather and more.

Livestock Insurance

If you have livestock on your farm, you will need to insure them, as well. Livestock such as pigs, cows and buffalo can be incredibly expensive. If your livestock passes away due to a collision with a vehicle or other accident, livestock insurance can provide compensation.

Farm Auto Insurance

The majority of farms use trucks and other vehicles to transport equipment and products. Farm auto insurance is a form of commercial auto insurance that provides coverage such as comprehensive, collision, liability, medical payments and uninsured/underinsured motorist.

When in doubt, shop around and ask your insurance agent about specific coverage for your farm.