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Category: Farm Insurance Agency

  • Farm and Ranch Insurance – A Quick Primer on Complex Coverage!

    To protect any farm or ranch, owners must purchase a well-crafted ranch and farm insurance policy that is designed to specifically protect their operation.

    Every farming or ranching operation is unique, so it only makes sense that the policy needed to provide that protection must be expertly written by a farm insurance agency to reflect the perils faced by that operation.

    Before accepting a generically written policy, this brief overview of how farm insurance agencies create the most protective policy should help. 

    What Are The Liability Risks?

    The first thing to understand when seeking a farm insurance policy is that every operation deals with different risks depending on what the business does and how it is done.

    So while every policy starts with the same basics that include coverage for farm buildings and most machinery, the rest must be added in as the policy is customized to fit the operation.

    Liability is included in the base policy, but farm insurance agencies suggest carefully examining the risks covered and coverage amounts, then increasing coverage based on the different activities happening on the farm or ranch, who visits the farm property, products being produced for resale, and more. 

    What About Homes On The Farm Property?

    Homes on farm properties must be covered by standard homeowners policies, although some personal property that is used for farming or ranching purposes might be covered under the ranch policy.

    Vehicles must be covered under either personal auto or commercial auto policies unless they do not leave the farm or ranch, in which case they might be considered farm equipment.

    In general, farm equipment refers to equipment like tractors, combines, rakes, pickers, mowers, and anything else owned by, and required to run the business. 

    What About Livestock on the Farm or Ranch?

    Depending on the type of farm or ranch being insured, a farm insurance policy should be written to add livestock insurance as required, with a careful look at the different perils that can be added beyond death by natural disaster or disease.

    Ranchers should take note as well that livestock insurance to protect herds and equine insurance to protect valuable horses are two different things and should be included separately as required. 

    What About Crop Insurance?

    Crop insurance that pays benefits in the event of crop loss is recommended for crop farms, as is insurance that covers loss of sales value.

    Farm products grown to use for the farm or produced for resale are also subject to specific mentions in a broad farm insurance policy. 

    What About Basic Exclusions?

    In addition to knowing what is included in base farm insurance policies and what must be added, farm insurance agencies stress the importance of knowing what is not included as well.

    Fencing is one farm expense that is not typically included in any base farm insurance policy, although it can be added to a custom one. 

    Get Help With Farm Insurance From an Experienced Farm Insurance Agency

    Crafting a farm insurance policy that is affordable, while also being fully protective, requires the help of an experienced farm insurance agency that knows the right questions to ask to do so.

    When insuring any ranch or farm, seek out an experienced local farm insurance agency that can help.

  • Understanding Agritourism and How to Insure It

    Though the term might seem unfamiliar to many seeking out farm insurance, agritourism as it is described is probably familiar to all.

    These business ventures, which combine agriculture with features designed to attract the public to the farm, can be creative and fun for all involved.

    They also present a unique set of risks for business owners.

    As such, farm insurance agencies find that operating a safe and successful agritourism business requires a clear understanding of what businesses fall under this category and the types of protection that are required. 

    What Is Considered To Be Agritourism?

    Agritourism is defined by farm insurance agencies and the agricultural industry as a business that combines agriculture and tourism.

    Businesses that fall under this classification include pick-your-own produce farms, cut-your-own Christmas tree farms, on-farm dining establishments including ice-cream stands and the like, wine tours and tasting, rides on motorized equipment, animals, or wagons, petting zoos, living history and educational farms, and others.

    Properties used for hunting, fishing, camping, or lodging also fall under this classification. 

    How Does Agritourism Differ From Ag Businesses?

    The main difference between agritourism businesses and standard agricultural businesses is that the public is invited to the farm or property in agritourism while only employees come to the property otherwise.

    With so many options in this category, agritourism is growing continuously, year after year, especially as the desire for more child-friendly, local activities keeps growing.

    These types of add-ons to traditional agricultural operations can bring in much-needed additional income, too. 

    How Is Insurance Handled?

    Insuring these unique businesses requires a farm insurance policy that is just as unique as they are.

    Liability policies are the main requirement, but along with those, farm insurance agencies must add additional protections where necessary.

    On-farm activities can classify agritourism enterprises as commercial businesses that must be covered under a general commercial policy.

    Product liability insurance is required anywhere that products are made or produce is sold directly to the public.

    General liability insurance to protect against injury and other damages is also required, as are any additional policies that protect against risks specific to the business or location. 

    In Summary

    Overall, farm insurance policies for agritourism businesses must be written carefully by experienced farm insurance agencies that understand the uniqueness of this sector of the agricultural industry and how to assess the risk level present on any tourist-welcoming farm.

    To purchase the most appropriate protection for these and other types of agricultural businesses, farm owners should seek out the expertise of a reputable farm insurance agency that will pay a visit, assess their operation, then advise them on all the types of protection their business requires.