The U.S. Department of Agriculture’s census estimated that there were over two million farms in the United States in 2012. Farms covered 915 million acres. American agriculture generates food, raw materials and livestock that help drive our economy.
Farming is a massive industry. If you are a farmer, then you likely understand this statement. You also understand the sensitivity of an agricultural business. Many different perils can damage your business. The damages can cost you lost income and financial losses to property.
You need proper farm insurance for your farm. Farms usually walk a fine line between a home and a business. Consider eight common elements of every farm that need insurance.
Insure your property and structures
You should have insurance for all your personal property and structures that are on your land. A strong property insurance policy can usually protect property inside your home and outdoor property like garages and sheds.
Farmers should also look into a special type of property coverage called structure insurance. This insurance often covers common farm structures like barns, silos and windmills. If a peril damages these structures, insurance can help.
Insure your machinery
Many pieces of large machinery like backhoes and harvesters may come with insurance policies. These policies can often replace these items if perils like fires or severe weather cause damage.
Insure farm vehicles
You may drive trucks or cars both on main roads and around the farm. If you use these vehicles for business, then consider investing in commercial auto insurance. Commercial auto insurance can protect the farm if you or another driver has an accident.
Livestock on your farm are part of your inventory. They could be financial losses if a peril kills them. Livestock insurance can help you replace these items.
Like livestock, crops are also inventory. If an unforeseeable event damages crops, then crop insurance could help you recover.
Farms employed over a million workers in 2012, according to the USDA. Workers may face risks on your property. If a worker gets injured on the job, you may have to pay the employee workers compensation. A strong workers compensation policy can help you.
Many farms have visitors. Some farmers may even run hospitality businesses. Consider getting liability insurance. It can help protect you if a visitor gets accidentally injured while on your farm.
Insure your products
You should always be sure to sell safe products. But, sometimes, accidents happen. If a product causes injury or illness to a client, product liability insurance can help you.
These are just a few elements of farm insurance to consider. Don’t stop with just these recommendations. Make sure that your insurance policies cover all foreseeable risks.