Farming is a lifestyle that offers rich rewards and fulfillment, but it also comes with its fair share of challenges and risks. If you are a farmer or you’re venturing into the agriculture business, there are many different factors to consider, which may seem overwhelming, so we’re here to help.
You can protect yourself and your farm by taking steps to mitigate potential risks and by securing the right farm insurance. We’ll explain six important things you need to know about getting the right farm insurance policy for your business.
PS: We have a separate post if you’re looking for insurance for your hobby farm.
#1: Types of farm insurance coverage
There are many different types of farms so there are many types of insurance coverages available to protect them. Here are a few examples:
Livestock insurance protects the value of your livestock and there are specific types of coverage available for: horses, cattle, pigs, sheep and poultry. Coverage options can be purchased in the event of natural occurrences (hail, fire, windstorm), plus other perils that may result from transportation, accidental shooting, electrocution and more.
Machinery, equipment and tools
Machinery is often a huge investment and it’s important to protect it. Machinery such as, tractors, sprayers, mowers, conveyor belts and other, farm vehicles, can be insured individually or all together, and coverage available can help protect it from fire, lightning and explosion plus you may get additional specialized coverage – including equipment breakdown.
Feed, grain, fertilizer, produce
You rely on feed, grain and fertilizer to keep your farm running smoothly so you need coverage to protect it from any loss or damage.
Barns, buildings and structures
Having the right coverage in place for your barns and other buildings is important as they are often the hub of your operations. There are many options available and coverage will be based on the size, purpose, age and more.
This is covered in more detail but is a key coverage for any farm policy to protect you and your family in the event of legal claims. Your liability coverage can be customized based on your operation.
Pollution clean up expense
Coverage can be added to your policy to help pay for expenses resulting from the clean up of pollutants from land or water on the premises.
Farmer’s market liability insurance
If you are selling your farmed goods at a farmer’s market, protect yourself by adding proper business coverage required to sell your goods, including liability, transportation, and more.
#2 Farm insurance can be customized
Just like home and car insurance, farm insurance can be optimized to cover exactly what you need and customized based on the size and scope of your operations.
#3 How general liability insurance works for farm business owners
General liability insurance for your farm can help protect you by paying for damages incurred if visitors are harmed on your property or their property is damaged because of your farm operations. For example:
- If someone gets hurt on your farm and sues for medical expenses.
- If someone’s property was damaged as a result of your livestock or equipment.
- If you need to pay legal fees in a lawsuit brought on by some form of negligence on your farm.
Having the right general liability insurance in place can help ease your mind.
#4 Why Employer’s Liability matters when insuring your farm
Farms can be hazardous places to work. If one of your employees gets injured or becomes ill due to the nature of their work on the farm, employer’s liability insurance may help with any associated costs that are not covered by a Worker’s Compensation policy.
#5 Loss of farm income
If you experience a covered, physical loss that prevents you from operating (e.g. an insured barn burns down), loss of farm income coverage will help mitigate your loss of revenue by allowing you to pay your farm-related bills and continue business operations until the damage is repaired.
#6 BrokerLink can help you find the right farm insurance
BrokerLink works with several industry-leading insurance companies in Canada specializing in farm coverage and can help ensure you have the farm insurance coverage you need.
BrokerLink can help you find Farm Insurance solutions specifically designed for owners of farms or agricultural businesses that involve:
- Cash crops
- And more!
Coverage is available for dwellings, outbuildings, machinery, business interruption, liability, limited pollution, equipment breakdown and much more.
Contact one of BrokerLink’s local branches to learn more about farm insurance.
More information about farm insurance
Common farm liability coverages
- Third party bodily injuries.
- Third party property damages on your farm.
- Farm animals that escape and cause damage or injury.
- Public access to farm animals.
- Slow-moving farm machinery on the road.
- Boarding of somebody else’s farm animals.
- Other non-farm related operations, such as storage of other goods.
Farm insurance coverage extensions
- Renting a farm or a portion of your farm.
- Custom farming or farming services.
- Roadside market stands.
- Using your animals in non-farming activities, such as at fairs or exhibitions.
- Liability coverage during public access to your farm. This may include tours or educational experiences.
Bills covered by loss of income coverage
- Loans – equipment, supplies, vehicles.
- Property taxes.
- Gas and propane.
- Wages and salaries for farm workers.
It pays to know the basics of farm insurance before venturing into a farm business! Let BrokerLink help you customize a farm insurance policy that’s perfect for your farm. Contact a broker to talk about the coverage you need.