Farm Insurance: Protect Your Business
Farming is a unique business which requires a unique form of insurance. Whether you’re considering purchasing a farm or are looking for insurance options for your current farm, making sure you have the right coverage is essential for protecting your business and livelihood.
Do I Need Farm Insurance?
When it comes to determining whether you need farm insurance, there are a few things you should ask yourself:
Do I Own Animals?
Owning animals like horses, cows, sheep, and chickens requires farm liability insurance. Animals are a big investment, especially if they are the main source of income on your farm, and they can be expensive to replace if anything happens to them.
Do I Have A Large Barn?
Large outbuildings like barns or storage buildings are common on farms, especially large farms with many acres. Whether you’re using these buildings for machinery or as a home for your animals, your barn must have insurance coverage.
Do I Grow Or Sell Fruits & Vegetables?
Organic farming is becoming an increasingly popular business, and if you decide to enter into this business, you’ll need to purchase farm liability insurance. This type of insurance will protect the fruits and vegetables that you’re growing in a greenhouse or other type of growing facility in the event they are damaged.
Do I Own Farm Machinery?
The machinery required to run a farm is also a big investment, so it’s a good idea to have insurance in case your machinery breaks down. Farm machinery can be very expensive to repair or replace, not to mention the costs you may incur if a breakdown causes your farm to come to a standstill.
What Does A Basic Farm Insurance Policy Cover?
Farm insurance differs slightly from provider to provider, but typically, a basic farm insurance policy will cover:
- Home coverage for your dwelling if on the property
- Personal property
- Farm structures
- General liability
- Pollution liability protection
This basic coverage typically includes the necessities and is a great option for people who are just starting out. However, there are some other options for farm insurance coverage that are not included in a basic plan.
Customizable Coverage Options
Once you’ve chosen a basic insurance plan for your farm, it’s important to consider additional options. These can include:
- Replacement cost coverage
- Sewer backup
- Comprehensive water coverage
- Loss of use of farm machinery
- Power interruption
- Loss of income protection
- Increased fire department charges
- Employer’s liability and voluntary compensation for employees
- Farm accident insurance
Your insurance broker will be able to guide you through the various options and help you determine if they would be beneficial to add to your farm policy.
What Kind Of Farm Properties Are Covered?
When it comes to farm insurance, the term “farm” covers a wide range of agricultural and commercial properties. Typically, farm insurance policies cover and have specific options for poultry farms, dairy farms, grain farms, ranches, berry farms, orchards, mixed farms, and wineries. Marijuana farms are not covered unless they are licensed by Health Canada, and hobby farms often require a special form of insurance that is added to your home insurance.
For answers to all your farm insurance related questions, contact the experts at Jeffery & Spence Insurance. Our brokers will take the time to understand your unique situation to ensure that you are properly protected.