The Business Side of Things

Farm Insurance Fundamentals For New Farm Owners

Whether you're just bringing your farm dreams to life or you've been getting things established for a while, you need to understand and appreciate the importance of farm insurance. Many people don't realize that homeowner's insurance doesn't extend to for-profit farm work, and they overlook the unique needs of a farm operation. Here are some things that you should understand about farm insurance as you look for ways to protect your investment.

Farm Owner's Coverage Often Includes Personal Protection

The reality of farm operation is that most people who operate a for-profit farm also live on the property. That means your home is on the property, and your personal life is intertwined with the farm operation. Farm insurance coverage takes this into consideration and provides you with protection for your home, personal belongings, and personal liability risks. No need to worry if your son's pup bites a visitor to the farm because your personal liability coverage will extend for this.

You Have Options For Covering Your Livestock

You might think that farm insurance comes with only one solution for insuring your livestock, so you'll be stuck with whatever that is. This couldn't be further from the truth. In fact, no matter what type of livestock operation you're running, you'll have some options for insuring that investment.

The standard solution is to insure them all as a collective unit. This sets a fixed value based on the number of animals that you have and provides you with a lump sump coverage amount for the entire herd. However, you also have the option to insure each of your animals individually. These individual coverage lines will allow you to set fixed amounts per head, and you can claim against only the affected herd members if something should happen. 

Your Equipment Will Typically Be Covered, Too

One of the best parts of farm insurance is the fact that it is truly all-encompassing. You'll get coverage not only for your land, structures, and livestock but also for the farm equipment. After all, fields won't get prepped and worked nearly as easily without those tractors, and your scales are a vital part of processing your herd. 

Talk with your insurance agent about the equipment that you have on the farm, the amount of coverage that they can offer you, and any solutions you might have for additional protection. That way, you can be confident that your entire operation is protected, including liability, herd coverage, land protection, and fixed asset insurance. 

For more info visit an insurer's site like http://www.wrg-ins.com/.