INSURANCE AGENCY NETWORK Blog
The challenges presented to a farm owner is just as significant to being a business owner. Both of them have to run and operate their respective fields using their managerial ability under pressure. And just like in business, farmers also need insurance to put a stronghold of their firm further and protect them from potential losses. In this article, you'll learn the essential overview and guide to the farm insurance policy.
The Significance of Farm Insurance
Farm policy is extensive insurance that typically covers the farm owner's residence and barns, machinery, and other property functioning in a farm business. Farm policies have diverse varieties. This insurance is a hybrid form of coverage that is aimed to protect your farm personally and commercially. One of the most important functions of this insurance is the coverage of your livestock and machinery.
As mentioned earlier, this policy varies widely, as its coverage speaks for itself. Let's look at its three categories for a detailed outlook. First is the farm machinery, which protects the policyholder from liabilities incurred from financial loss and damage to equipment. It includes the repair or replacement expenses to vital materials such as tractors, planters, hay rakes, and cotton pickers.
The next general coverage is the livestock, which most insurers offer on a broad scale. It compensates your farming business if an animal is killed or injured due to a covered peril. The third one is the farm product coverage, where the insurance company covers the expenses for feed, grain, seed, and other products essential to farming.
Beware of Exclusions
Apart from the vast array of coverage a farm insurance policy offers, you should also be wary from its exclusions. Insurers often exclude activities such as growing crops, livestock racing or rides, and custom farming in the farm policy.
Together with the three primary coverages mentioned beforehand, there are also coverages that you may need to fill your farming needs.
The necessity to obtain workers' compensation coverage for farmers may vary depending on the state. This policy will reduce the burden of paying expenses if an injury is sustained by one of your workers.
Commercial Auto Coverage
Usually, automobiles are excluded in the farm personal property and liability coverages. If you need to rely on vehicles to utilize your production in the farm business, you have to customize one to include in your coverage.
With these considerations, we hope that this article gave you a better overview of the farming insurance policy. If you need to know more, it is best to consult an agent or insurance company to determine your specific inquiries further.
At Insurance Agency Network, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (425) 681-0996. You can also request a free quote by CLICKING HERE.