What is farm insurance?
Farms are multifaceted operations, and thus exposed to a range of risks. Farm insurance may help agricultural businesses in Vermont shield themselves from many of the risks they face.
Farm insurance is a form of commercial insurance for agricultural businesses. Policies may have specialized coverages for everything from barns and tractors, to animals and products.
Because these policies are often quite specialized in their protections, it’s important to work with an insurance agent experienced in farm coverages when selecting a policy.
What Vermont businesses need to have a farm policy?
Most agricultural businesses in Vermont should have a farm policy. This broadly includes small and large agricultural businesses growing crops and/or raising livestock.
Some examples of the agricultural businesses that often get this type of policy are:
- Livestock farmers
- Dairy farmers
- Organic farmers
- Homestead and hobby farmers
- Community-supported agriculture (CSA) farms
- Urban farm businesses
Hemp and cannabis growers also usually need many of the coverages found in farm policies, but these crops present unique considerations when getting insurance. Businesses growing these crops may need a separate type of policy. An independent agent can help.
What coverages do farm policies typically offer?
Farm policies are multi-faceted. They may provide a combination of farm equipment insurance, liability insurance, and personal insurance coverages, depending on a farmer’s needs.
Property insurance normally covers commercial assets that an agricultural business owns. Most farmers will need at least some farm equipment insurance coverage. These might be:
- Barn and Outbuilding Coverage: May cover barns, silos, sheds, and other agricultural buildings on a farm (not including a residence).
- Farm Contents Coverage: May cover equipment, tools, livestock, feed, seeds, and other business assets on a farm.
- Commercial Vehicle Coverage: May cover commercial registered box trucks, flatbeds, pickups, and trailers that a farm owns.
- Livestock Coverage: May cover individual livestock or groups of livestock in the event of death due to a covered event.
- Equipment Breakdown Coverage: May cover breakdowns of tractors or other essential farm equipment.
- Loss of Business Income Coverage: May cover prolonged income losses following a covered event that negatively impacts farm operations.
Liability insurance normally covers situations where a farm could be sued, usually for causing injury, illness, or property damage to another party. A few liability coverages are broadly recommended for most agricultural businesses:
- General Liability Coverage: May insure against common accidents occurring on farm property, wherein there’s third-party injury or property damage.
- Product Liability Coverage: May insure against injury, illness, or property damage that’s caused by a farm’s products, whether sold on-site or through retailers.
- Commercial Umbrella Liability Coverage: May insure against large lawsuits by offering secondary protection that’s beyond the limits of other liability coverages.
For farmers who live on their farm, some personal insurance coverages may be available. These are generally for things that the farm doesn’t own. A couple to consider may be:
- Household Dwelling Coverage: May insure a farmhouse or another primary residence that’s located on a farm’s property.
- Household Personal Property Coverage: May insure household belongings, such as clothing, furniture, kitchenware, and other personal items.
How much does it cost to insure a farm?
The cost of insuring a farm is highly variable. Factors such as location, size of operations, crops grown and animals raised, buildings and structures owned, equipment owned, and many other details can impact costs.
To find out how much farm insurance coverage would cost for them, farmers can talk with an independent insurance agent, who typically has access to more than one insurance company. They’ll be able to find highly tailored policies based on a farm’s needs.
How can agricultural businesses in Vermont obtain farm insurance?
If you need help insuring an agricultural business, get in touch with the independent insurance agents at Burlington Insurance Agency. Our Vermont agents understand the insurance needs of farmers, and will help find you a plan to protect your assets in an affordable way.
