Farm and Ranch Insurance: Things to Consider When Choosing a Policy

For most farm or ranch owners, their farm is their livelihood. Farms are valuable assets, not only because of the income they produce, but also because of the amount of money invested in various assets around the farm with buildings, structures, livestock, and farm equipment.

With so much invested, it is important for farm and ranch owners to take precautions to protect the investments they have made.

When considering a policy for your farm or ranch, it is important to talk to your insurer to understand what options are available.

Since insurance policies vary considerably, you should work with your insurer to find a policy that works for you. Be sure that everything you want to insure is covered in your policy, and that the level of coverage is enough to protect your investments.

Here are a few things to consider when discussing policies with your insurer:

Property Insurance
Check to ensure that your property insurance policy covers any buildings or structures you have on your property. You should also consider a policy that will cover your assets in the event of a wildfire, storm, or other natural disaster.

Equipment Insurance
You may want to consider coverage for important investments such as tractors, agricultural machinery, and other equipment. Just as you would insure your personal vehicle, insuring your farming equipment is important as well.

Livestock Insurance
Be sure to look into livestock insurance to protect you from a possible loss, including theft of livestock.

Crop Insurance
Crop insurance can protect you from the loss of crops due to natural disasters (crop-yield insurance) or loss of revenue due to declines in the prices of agricultural commodities (crop-revenue insurance).

Workers’ Compensation
Workers’ compensation is important if you have employees. If an employee were to have a work related accident, they would be able to claim medical expenses and possibly lost wages. If you hire contractors to work on your premises, make sure they have insurance as well.

Liability Insurance
Liability insurance protects you in case someone is injured while visiting your farm or ranch. Liability coverage varies considerably depending on the level of risk, and the amount of visitors or vendors you receive.

Whether you are already insured or considering insurance for your ranch or farm, be sure to check with your provider to see what levels of coverage are available, and to ensure that all your investments are covered.