Farmers and ranchers generally require commercial insurance for property and liability protection. Known as farm insurance, it is available to ranchers and commercial farmers, although policies differ. Learn more about this business insurance option here to determine what’s right for your operation. 

What Do I Need to Know About Farm Insurance? 

How It’s Different From Homeowners Insurance

Farmers and ranchers generally cannot rely on homeowners insurance alone to provide property and liability protection. Homeowners policies protect residential structures and their contents, including furniture and personal items, following damages or losses. And while this insurance generally covers all buildings on assorted properties, it does not offer commercial liability protection. 

Farm insurance combines property and commercial liability insurance to provide farmers and ranchers with additional protection. For example, if your operation hosts events like corn mazes, hayrides, orchards, horseback riding, or pumpkin picking, liability insurance protects you in the event of customer accidents.

What to Consider With Farm Insurance

Determine your commercial insurance needs based on the type of operation you oversee. If yours is a small “hobby” farm, your homeowners insurance policy might provide enough coverage. However, if you start selling products from your farm or hosting events, commercial liability insurance becomes necessary.  

For operations involving employees, workers’ compensation pays for injuries sustained on the job. If you do not work with a team or host events, your farm still requires commercial liability insurance to cover product sales. If applicable, purchase crop insurance to sidestep large production losses, such as those from weather-related events. 

Review property insurance options to protect all related farm structures, machinery, and equipment, such as plows and assorted barns. Such coverage can also protect livestock, pesticides, and fertilizers since they are also farming property. For example, if a fire consumes a dairy barn and kills some livestock, property insurance pays to rebuild and purchase more animals. 

If your operation includes frequent use of farm and semi-trucks, ask your business insurance agent about collision coverage. 

Discuss your farm insurance requirements with Larry S. Helms & Associates Insurance Services for the right coverage. Offering home, auto, life, and commercial insurance policies to residents throughout Union, Mecklenburg, and Stanly counties in North Carolina since 1998, the independent agency offers customized, budget-friendly coverage. Call (704) 893-2793 for a free insurance quote, or visit the website for more commercial insurance information.