How to Ensure Commercial Farm and Ranch Insurance Coverage

Different industries call for different types of insurance, so if you plan to start a farm or ranch, you may need commercial and ranch insurance. Over two million commercial farms exist in the United States, and it’s common for owners to use this specialized coverage. Here’s what you should know about commercial and ranch insurance if you plan to own such property.

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Why Do Farms and Ranches Need Commercial Insurance Coverage?

Just because you own a farm or ranch that makes money doesn’t mean it will always be lucrative. There may be times of unexpected severe weather that limits or damages your crops. In these situations, having the right insurance can keep money coming in during financial downturns. Texans may long remember Hurricane Harvey in 2017, a natural disaster that caused millions of dollars in crop and livestock damage.

A flooding disaster can lead to multiple problems, such as water contamination and insufficient shelter. Owners of ranches and farms that carry the right insurance can at least be compensated when a natural disaster shuts down their business. Over time, a farm or ranch can lose hundreds of thousands of dollars in revenue if certain unfavorable conditions persist, such as a drought.

It’s possible for a standard homeowners insurance policy to cover a small home farm, but more significant commercial operations are better suited with a more detailed farm and ranch policy. Regardless of your option, you must add specialized coverage endorsements to match your property.

Farm and Ranch Insurance Coverage

One reason to pursue a farm and ranch insurance policy, even if you work from home as a farmer or rancher, is that a standard homeowners plan only covers some structures. A standard homeowners plan cannot cover any structure outside the home used for business purposes.

A farm and ranch insurance plan typically covers a combination of traditional home coverage, general liability, and commercial property protection. This combination protects against a wide range of perils, from bad weather to lawsuits and injuries on your property.

People who visit your property are potentially at risk of getting into an accident with farming equipment or simply slipping and falling, which can happen anywhere. The general liability portion of your policy will pay for such injuries.

Standard AAIS coverage options

The American Association of Insurance Services (AAIS) has adopted standard policies for homeowner and farm plans that many insurers use. Some of the options included in standard AAIS farm policies include coverage for:

  • Barns, outbuildings, and other structures
  • Farm personal property such as machinery, tools, seeds, and fertilizer
  • Farm liability in case a visitor gets injured on your property

The key to getting the right agricultural coverage is to talk with an insurance professional familiar with your industry. An experienced insurance expert can point out coverage advantages and options you might have overlooked.

Reduce Your Commercial Agricultural Risks with Advanced Insurance Group!

The best way to reduce commercial risks is to purchase insurance that matches your company’s needs. The larger your operation, the more you need to consider coverage beyond your standard homeowners insurance plan. Contact us at Advanced Insurance Group to learn more about commercial farm and ranch insurance customized for your farm/ranch business.

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