7 Reasons Why You Must Consider Purchasing Farm Insurance

The United States is home to over 2 million ranches and farms. Most of these farms are run by families who earn less than $350,000 annually. Here are 7 good reasons why owners of farms, large or small, should consider farm insurance in Amarillo, Texas.

1.   A Farmer Needs Business Insurance Too

Full-time farmers need to protect their agricultural assets as any business owner should. Since farming is more vulnerable to nature than other businesses, you need to be comprehensively covered for unexpected circumstances, such as when crops are destroyed by bad weather or infestations.

Start by purchasing a basic farm insurance plan as a foundation and adding coverage extensions that suit your business needs later. As a full-time farmer, you cannot afford to let one disaster wipe out your entire business, which can happen without the right insurance.

2.  Separate Coverage for Farm Machinery and Equipment

Farming equipment such as tractors, grain bins, windmills, silos, hay balers, cisterns, etc., should be protected by farm equipment insurance coverage. All equipment and machinery employed on a farm should be covered so that it’s easy to replace these items if they get damaged or stolen. Insuring farm vehicles is similar to insuring other commercial vehicles, as the coverage options include liability, collision, and roadside assistance.

3.  Types of Coverage for Livestock and Their Feed

Often, farm animals can be harmed by factors such as natural disasters, wild animals, or thieves. So, you need farm animal insurance to financially cover you in case your farm livestock is harmed by a named peril.. Some policies also provide benefits when animals suffer illnesses and diseases.

There are three different kinds of livestock insurance:

  • Individual coverage
  • Herd coverage
  • Blanket coverage

4.   Additional Coverage to Protect from Storm Damage

Powerful storms can cause damage to even robust structures. So, it’s a good idea to make sure your farm insurance protects your property from severe storms, fire, and lightning. A farm and ranch insurance policy combines a homeowner’s policy with commercial property and general liability insurance.

5.  Benefits of Farm Liability Insurance

Every farm needs farm liability insurance regardless of size. This coverage pays for accidents resulting in injuries to visitors or their property being damaged. It’s particularly important if you have frequent visitors to your farm.

6.  Farm Buildings Also Need Adequate Coverage

Getting a farm property insurance policy will ensure that the buildings are protected against damages. You also must make sure that your coverage protects contents within the buildings on your property.

7.  Specialized Coverage for Your Farm’s Unique Needs

Since every farm is different, each farmer is best served with a customized plan. Here are a few types of coverage extensions to consider, depending on your location and how your farm operates:

  • Earthquake coverage if your farm is near a fault line
  • Business disruption coverage to pay for losses
  • Sewage backup coverage in case of a severe flood
  • Temperature-sensitive crop coverage
  • Cyber liability insurance in case your data is hacked

The right farm coverage will protect your business and livelihood. If you have questions about farm insurance, contact our team at Advanced Insurance Group. We can develop a personalized farm insurance plan for you.


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