What Does Farm Insurance Typically Cover?
Farm insurance typically covers a mix of property, liability, and income-related risks to protect farmers from unexpected losses that could threaten their operations. While policies vary, most plans combine several types of coverage into one package. Safeguard Insurance Agency provides farm insurance in Auburn, MI, Bay City, MI, Midland, MI, Oscoda, MI, Saginaw, MI, Tawas City, MI and surrounding areas.
Property Coverage
This protects physical assets on the farm. It usually includes farm buildings (such as barns, silos, and storage sheds), equipment and machinery, livestock, feed, and harvested crops stored on-site. Coverage often extends to damage caused by fire, theft, storms, vandalism, and certain natural disasters. Specialized add-ons may be available for high-value machinery or rare animals.
Liability Protection
Farm liability insurance safeguards against claims of bodily injury or property damage caused by farm operations. For example, if a visitor is injured while on the property or if livestock stray and cause an accident, liability coverage can help with legal costs, settlements, and medical expenses. Some policies also cover product liability, which is important for farms selling food or goods.
Loss of Income
Also called business interruption coverage, this helps replace lost income if the farm can’t operate due to a covered event, such as a barn fire or equipment breakdown. This ensures the farmer can keep up with ongoing expenses, like loan payments or wages, during downtime.
Specialized Coverages
Many insurers offer options tailored to specific farming activities. Crop insurance (often backed by government programs) protects against yield losses from weather or price fluctuations. Livestock mortality insurance covers death due to accidents, disease, or certain natural disasters. Some policies also address contamination, pollution liability, or agritourism risks.
In essence, farm insurance is a comprehensive safety net that blends aspects of homeowners, commercial, and specialty coverage into one policy, helping farmers protect their livelihoods from a wide range of threats while ensuring their operations can recover from setbacks. Please reach out with any questions you might have, and we will be happy to help.