Like any business, farms represent an enormous investment, both in financial terms and the time you’ve spent building your operation. However, agricultural enterprises are subject to even greater risks than other companies, which is why insurance is so important. If you’re a farmer or rancher, the following guide offers some answers to questions you may have about farm insurance.

A Brief Guide to Farm Insurance

Who needs farm insurance?

Any agricultural enterprise that owns valuable equipment, land, livestock, or buildings should carry a farm insurance policy. This coverage shields your assets from extreme weather and other perils that could put your operation out of business.

Will my homeowners policy cover my equipment if I live on the farm?

Your homeowners insurance will cover your home and any possessions inside if damaged by an extreme weather event, fire, or other covered events. However, business assets are typically excluded from most policies, so your equipment and other structures likely won’t be covered.

Most farm insurance policies offer coverage for your business and personal assets if you live on the property. This provides comprehensive protection and could be more affordable than buying two separate policies.

Is farm insurance different from other commercial policies?

Farm insurance is a type of business insurance specifically designed for the unique challenges of the agricultural industry. For instance, you may have tens of thousands of dollars invested in livestock, which is vulnerable to sickness and serious accidents. These policies provide compensation if your valuable animals get sick or die from a covered event.

A fire or major event can also wipe out grain, seeds, and harvest yields. In this situation, your policy will compensate you for losses that could put your operation out of business.

Does farm insurance protect against damage to crops?

Losing a crop to an insect infestation, fire, or hailstorm can be financially devastating. However, most farm insurance policies don't cover plants in the ground. Crop insurance backed by the USDA is better for protecting against these perils.

Safeguard your commercial farm with a policy from Texas County Mutual Insurance in Licking, MO. Since 1904, they've helped farmers across the state protect themselves from the unexpected. They’re owned by their policyholders, so they’re motivated to do what’s best for you. Visit the website to learn more about them, or call (573) 674-3125 to request a quote.