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May 27, 2020
As is the case in many other areas of life, preparation is key. This idea certainly applies to the growing season. No matter how careful you might be, a lot can go wrong on a farm that can make you fall behind or even jeopardize your farm’s very existence. To stay ahead of the game, it’s vital that you prepare and protect your business from calamities with farm insurance.
What is Farm Insurance?
Farm insurance is a hybrid type of coverage that provides protection on both personal and commercial levels. On the one hand, farm insurance is similar to a homeowners policy in that it covers your home and belongings and provides personal liability coverage. On the commercial side, farm insurance is comparable to a business owners policy because it includes coverage for your farming machinery, livestock, employees, and farm products like seed. Farm insurance offers commercial liability coverage as well.
Since our Carbondale insurance agency was founded in 1980, we’ve written a near-countless number of farm insurance policies for area farmers. Given our extensive experience in this niche, we can tell you that all farm insurance policies aren’t the same because all farms aren’t identical. Because farms vary from one to another, each individual farm typically needs coverage that’s specifically tailored to suit its unique needs.
Scheduled vs Unscheduled Coverage
When we talk to you about the coverage your commercial farm needs, we’ll explain that you can choose between scheduled and unscheduled coverage. If you choose scheduled coverage for your livestock or farm equipment, each animal or piece of equipment will be insured up to a preset dollar amount. Unscheduled or blanket farm insurance is different. Instead of insuring individual animals or pieces of machinery, this type of coverage insures all your farm property with one lump sum.
In general, it’s often wise to choose scheduled coverage if you have livestock and/or equipment that are valued on the high-dollar side of things. If you opt for blanket coverage, it’s critical to ensure you have sufficient coverage for all your farm property. Getting a policy that has a payout potential that’s inadequate may result in a lower payment than you need or expect if you have to file a claim.
As it relates to livestock, the maximum amount payable per head depends on whether you choose scheduled or unscheduled farm insurance. This makes it even more important to talk to our team about the farm insurance you need for your commercial operation.
What Farm Insurance Doesn’t Cover
Although farm insurance provides necessary coverage for commercial farmers in multiple contexts, it might not cover everything you expect it to. For starters, a standard farm insurance policy may not cover fencing. Some pieces of equipment may require you to purchase a specific policy extension to have them covered by your farm insurance policy. Similarly, you may need to purchase additional coverage for protection against certain perils like earthquakes or floods.
Oliver & Associates: Your Source for Farm Insurance You Can Count On
If you want to stay ahead of growing season with farm insurance you’ll be able to count on when you need it the most, contact Oliver & Associates to schedule a consultation today!