Agriculture Insurance
Agriculture insurance helps provide essential protection against the inherent volatility of the farming industry, including accidents, natural disasters and crop failure. It can offer security against the unpredictable, helping to protect against risks that can potentially bankrupt farms, impacting not only the farms and their workers and investors but the entire community that relies on their crops.
What is agriculture insurance?
Agriculture insurance is a type of commercial insurance specifically designed to help shield farmers and agricultural businesses from unpredictable events and risks, including livestock diseases, natural disasters and accidents. By providing this protection, agricultural insurance helps ensure that agriculture operations can persist and thrive in the face of unwanted events. Given the increasing frequency of natural disasters such as floods and droughts, investing in agricultural insurance is essential for helping safeguard farmers’ livelihoods.
Types of agriculture insurance
Farm property insurance
Many farmers have enormous capital tied up in structures and tools they use to farm. The loss of these could cause financial hardship for the farmer. To protect these valuable assets, they can choose to insure their farm buildings, mobile agricultural equipment, and irrigation systems from damage caused by fires, wind, vandalism, and other perils.
Farm liability insurance
Farmers can be found responsible for injuries to others or damage to property of others that arise out of the farming operations. In severe instances, these claims can cost more than the value of the farm. Purchasing farm liability insurance allows the farmer to cover these potential catastrophic losses.
Crop insurance
Farmers can gain peace of mind through crop insurance, helping to ensure that before crops are planted, they can be protected against unpredictable events such as poor weather conditions, pests and other factors that may cause crops to fail. In some instances, coverage is available to protect against low prices. Crops are the cornerstone of the farmer’s livelihood, making comprehensive coverage essential for a secure and successful farm.
Livestock insurance
Livestock insurance can be purchased to cover the value of the animal in the event of death under certain circumstances. It can help mitigate the inherent volatility in livestock due to fluctuating market prices and feed costs and help protect against potential revenue loss caused by reduced milk production or declining market prices.
Equine insurance
Equine insurance can help cover a wide range of horse-related incidents and concerns, including loss of a horse due to accident, illness or theft, as well as major medical expenses such as surgery. Given that each horse represents a significant investment, protecting it is crucial.
Who is agriculture insurance right for?
Various groups benefit from agriculture insurance solutions. The specific type of agriculture insurance will depend on the goals and needs of each entity. Farmers and ranchers typically rely on property, liability, crop and livestock insurance. Larger agricultural businesses such as food processors can require additional protection against issues like supply chain disruptions and spoilage, while seed and fertilizer companies also need to safeguard their products and liability.
What should you consider when choosing agriculture insurance?
There are a few key considerations when choosing the right agriculture insurance for your operation. First, identify the extent of coverage that you need depending on the size of your business. Next, compare premium costs and pricing options between insurances, and take into consideration government subsidies and discounts. Third, when comparing options, research the reputation and reliability of your insurer. And lastly, investigate the claims process and necessary documentation. Working with a brokerage that specializes in agriculture insurance, like PCF Insurance, can take a lot of this weight off your shoulders.
Why get agriculture insurance?
Agriculture operations often face unpredictable events such as natural disasters, pests and disease, and inclement weather. Agriculture insurance can help provide protection in case of these events, helping to ensure that farms, ranches and larger agriculture businesses can continue to operate and sustain their income. This not only supports the individuals who run these operations, but also the surrounding communities and the broader agriculture market. Farmers can focus on farming and growing their operations instead of worrying about what can go wrong and how that can negatively impact their business.
FAQ
Farmers and agricultural business owners assess insurance policies based on coverage needs, such as livestock, property, equipment or liability. The insurer evaluates risk factors like location and crop type to determine premiums. During the agreed upon coverage period, if a covered event occurs, the farmer can file a claim for assessment and compensation.
Coverage depends on specific needs, such as crops, livestock, equipment or general liability. For example, crop insurance can help protect against losses caused by weather or pests, while livestock insurance can help cover loss of costs associated with livestock death.
Common options for agricultural insurance coverage include livestock insurance, crop insurance, and property and liability insurance. Each of these can help protect against unexpected risks and subsequent loss that impact revenue and sustainability.
Understanding your appropriate coverage needs for agriculture insurance begins by understanding the extent of your business. For instance, assess the size and location of your agricultural business, including what requires protection, whether that includes crops, livestock, property or all of these. It’s also important to look into the terms of your current coverage to make sure that unpredictable events are included, particularly given your location and historical trends like the prevalence of droughts and natural disasters. And be sure to research your insurer to see if they have a proven track record of meeting customer needs. Working with a dedicated broker can make this process much simpler.
This will be based on what your farm does as well as the size and location. If you are primarily a crop-based farm, then crop insurance will be necessary, just as livestock insurance solutions are necessary for farms with cattle, swine, sheep or poultry. PCF Insurance can work with you to assess potential risks in your area and what coverage best suits your agricultural operation.
Yes, even small farms with a few chickens or 4H animals should be protected with agriculture insurance. Unpredictable events happen and it’s critical to protect farms of all sizes, offering peace of mind.
Don't let Uncertainty Hold You Back
