Farming of all types has existed for thousands of years, but technology has revolutionized the way farms operate only within the last few decades. Farm and ranch insurance is essential for farmers to keep up with these trends while simultaneously keeping their investments safe from the threats posed by advancing technology.
Modern agriculture businesses should boldly embrace modern technology to increase the speed, quality, and simplicity of their production. At the same time, investments in advanced agricultural tech should be paired with insurance because these new tools come with their own set of risks. Here is how farm and ranch insurance fits into the bigger picture.
About Farm and Ranch Insurance
Farm and ranch insurance is a more specialized protection than homeowner’s insurance because farms typically comprise multiple buildings, large equipment, cattle, and more. Some of the things that farm and ranch insurance can cover include:
- Outbuildings
- Livestock
- Farm equipment
- Products (and liability related to those products)
- Fences
- Accidental pollution
These are just a few basic coverages that most policies will include in some form. Depending on the type of farm you operate, additional protections will be necessary—especially if you are riding the technology trend and incorporating smart tech into your agribusiness.
Types of Coverage for Modern Agriculture Equipment
While all farmers should carry basic protections such as general liability coverage, operating a modern agricultural business with integrated technology can require additional insurance types. Some of the best ones include:
- Equipment insurance – While most farms carry equipment insurance, be sure to review the policy to see if your newer, more advanced equipment is included. Advanced machinery may need special protection against damage or theft.
- Cyber liability insurance – Tech-driven farms often use wifi-enabled machinery to keep track of production, potential problems, and trends in operations. While this is convenient and can boost operational efficiency while decreasing spend, it also leaves the farm open to cyber vulnerabilities. This type of insurance can protect against a farm being hacked, ransomed, or shut down due to cyber threats.
In general, insurance coverages for technology-forward farms will fall into three broad categories of coverage: physical assets, data security, and environment. Good insurance addresses the damage types more common in high-tech farming equipment, such as lithium battery failure or replacement of integrated parts.
Environmental considerations such as new types of pollution or even a greater draw from the energy grid to power-connected technology can also be a concern for some farms.
Data security deserves special mention among these three because it poses some of the most salient risks for highly connected, technologically advanced agribusinesses. Farms that employ numerous people who use advanced technology regularly must bear the risk of data breaches.
The risks can compromise their operational data and sensitive information of employees, industry partners, and suppliers. Farms susceptible to breaches may need to pay damages to people whose social security numbers or bank account information are leaked during an attack.
Choosing the Right Insurer
The insurance agency you select for your farm and ranch insurance matters—a smart decision becomes even more essential when advanced technology is involved. Not all insurance providers offer sufficient coverage to address the perils faced by your technology or the risks that technology can pose to your operation.
Choose an insurer with expertise in farm and ranch insurance who understands the needs of modern farmers and how technology integrates with their operations. There is no need to remain in an outdated age when operational efficiency, safety, and security all stand to gain from technological achievements.
At the same time, not all agencies have caught up with these offerings. No one wants to find out after the fact that their insurance does not cover their costly equipment because their insurer was not aligned with modern trends.
Protect Your Modern Farm & Ranch With Insurance From Burton & Company
Investing in your modern agriculture business often means integrating new and exciting technology to reduce waste, improve efficiency, and increase safety. The experts at Burton & Company provide customized insurance solutions for modern agriculture so you can confidently embrace these trends and innovations.
Contact Burton & Company to investigate insurance options and protect the safety and stability of your technological investments. Embracing the future should not be something to fear; instead, it should be a valuable opportunity to stay relevant in an increasingly competitive market.
