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Farming is not just a livelihood; it’s a way of life. For farmers, their land and livestock are not merely assets, but a culmination of their hard work and dedication. However, farming is also inherently unpredictable, with various risks that can jeopardize the financial stability of a farm operation. This is where farm insurance plays a vital role, acting as a shield against unforeseen events and providing much-needed financial support.
How Does Farm Insurance Work?
Farm insurance may not refer to a single type of coverage but rather a collection of policies capable of financially protecting farmers from common perils and incidents. Like most types of insurance, policyholders pay premiums to the insurance company, and in return, the insurance company agrees to cover agreed-on financial losses.
Farm insurance portfolios can be customized based on the specific needs and risks associated with the farm. The premium amount is influenced by factors such as the size of the farm, the type of crops grown or animals raised, the farm’s location, the history of past claims and the coverage limits desired.
When a covered event occurs, such as a natural disaster, fire, theft or liability issue, the farmer can file a claim with the insurance company. After assessing the claim and verifying its legitimacy, the insurance company will provide compensation to help the farmer recover from the loss or liability.
What Does Farm Insurance Cover?
The exact details, capabilities and limitations of farm insurance portfolios may vary, but coverage for the following may be advisable inclusions:
- Property coverage—Farm insurance typically includes coverage for the farm’s physical assets, such as the farmhouse, barns, outbuildings, machinery, equipment and stored commodities.
- Crop insurance—This coverage safeguards against crop failure due to weather-related perils, disease, pests or other unforeseen events. This type of insurance may also help policyholders recoup losses for lower-than-average crop yields or market prices.
- Livestock insurance—This part of a farm insurance portfolio may financially protect farmers from losses involving their animals due to accidents, disease or theft.
- Liability coverage—This aspect of farm insurance can provide financial assistance if a third party, such as a guest or neighbor, is injured or accrues property damage as a result of the policyholder’s operations.
- Workers’ compensation—This coverage may help pay for financial losses and expenses arising from a farm’s employees being injured on the job or developing work-related illnesses.
- Business interruption insurance—If a covered event disrupts farm operations, this coverage may provide compensation for resulting financial losses, including reduced income.
- Equipment breakdown coverage—This may cover the costs of repairing or replacing damaged farm machinery and equipment in the event of mechanical breakdown.
Get the Right Coverage
At Bozeman Insurance, we have over 60 years of experience serving businesses, families and individuals in the St. Petersburg and Lakeland areas. Our agents will draw on this collective knowledge to ensure that your farm is covered by a suitable insurance portfolio. Contact us today to get started.
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