Farms and ranches are the unspoken drivers behind much of what fuels America. From the corn that becomes ethanol and sustains food animals to the livestock products that end up on the dinner plates of millions every day, the United States runs on farming.
However, farms are dangerous, and those who own and manage these operations often understand that securing good farm and ranch insurance is non-negotiable. Still, they might need clarification on what should be included and how to bridge gaps in coverage.
While each farm and ranch policy should be uniquely crafted to address a specific farm’s risks and goals, most policies will include basic protection for some of the most frequent issues farmers face. When considering any insurance policy, make sure it covers at least the top five risks for farmers and ranchers in the U.S.
Livestock and Cattle Coverage
For farms that operate primarily with livestock or those with a smaller livestock presence complementary to their other operations, the loss of the animals can be a catastrophic financial event. From losing the payout associated with processing the livestock or cattle to the hefty bill to replace them, farmers might not have the financial means to recover from such losses without insurance.
Be sure that any livestock insurance coverage protects the animals from the risks most salient on your farm. These may include:
- Animal attacks
- Natural disasters (e.g., floods, wildfires)
- Collisions with vehicles
- Accidents while transporting the animal
Livestock can be insured individually, as herds, or as a collective. The right choice for you will depend on how your farm is organized and the products it produces.
Crop Loss Coverage
For farms that focus more on crop generation, whether to feed livestock or to produce for human consumption, crop loss can end a farm’s financial viability. Depending on the insurance policy, crop insurance can cover not only the lost value of the crops themselves but also the cost of replanting them and keeping the farm operational while they regrow. From droughts to flooding, loss of crops should be carefully insured against well in advance of any potential dangers.
Farm Vehicle Coverage
Very little work on a farm would get done if not for the vast array of vehicles in use every day. Hay balers, pesticide applicators, livestock and crop transport vehicles, harvesters, and more are all commonplace on farms and ranches, and most are costly purchases.
If damage should harm these invaluable assets, a farm could be on the hook for substantial repair or replacement costs, the opportunity cost of fields sitting unharvested (and potentially spoiling), or quotas not being met.
A farm and ranch insurance policy without complete coverage for farm vehicles leaves agriculture businesses exposed to some of the most financially devastating forms of loss. Always make sure your policy addresses what happens when a vehicle or piece of equipment is damaged, vandalized, or stolen.
Farm Workers’ Compensation Coverage
Most farms are sprawling operations that require the help of dozens or even hundreds of people. Because farms are such hazardous locations, harm to farm workers is more of a “when” than an “if.” Be prepared for this event by purchasing an insurance policy with strong employee protection.
Not only is this the responsibility of the farm for employee health and wellness, but it also protects the farm from the costs of paying employee medical bills or rehabilitation costs.
Most farms are required to carry at least some level of workers’ compensation insurance. The right amount for your farm or ranch will depend on its location, size, product type, and more. An industry insurer can guide you through the requirements.
General Farm Liability Coverage
Even farms that practice safe, careful operations can still accidentally cause harm to others. Whether a loose cow crosses a road and causes a car accident or the farm ships a spoiled crop product that causes consumer illness, farms can still face tremendous financial consequences for events that were mistakes. Without liability insurance, the cost of lost products, compensatory damages, and even legal fees tied to lawsuits will all fall on the farm itself.
Get Complete Farm and Ranch Insurance Coverage From Burton & Company
America needs farms and ranches, but these operations are hazardous to employees, livestock, crops, and consumers. To make sure your farm or ranch is safe from unexpected financial catastrophes, always purchase insurance addressing a wide range of common risks.
In addition to the top five risks farms face in any industry, the professionals at Burton & Company can help you identify gaps in coverage specific to your farming operation. Contact Burton & Company today to secure the farm and ranch insurance you need.
