Common Farm Exposures
Farm Insurance - What You Should Look For
While you are busy running your farm operations, we can help simplify what you need to look for with your insurance policy. Click on the heading below for more information on some important items that can affect your farm insurance.
Some insurance companies will require that siding be punctured before they replace your metal roofing and/or siding. If the siding has cosmetic dents without the metal being punctured, there will be no coverage.
There are several different types of coverage available for farm outbuildings. Snow load is not automatically included and it is important to review coverage, especially the older buildings. Your broker can help you understand the coverage available on your farm outbuildings.
All heaters must be installed and used based on the manufacturer’s specifications. Most portable construction heaters are not designed for continuous use and there have been some recalls on these different units.
It is important to notify us of any new or changes to your heating sources. Some heating sources must be approved by the company before they are used or it will nullify your coverage, regardless of the type of claim that occurred. We encourage you to consult with us before changing your heating source as some types of heating can result in premium surcharges.
Bio-tech buildings receive limited coverage based on their construction and use of a tarp as a roofing material. These buildings will often have snow load excluded and it is important to notify us of any changes, such as a new tarp as it can impact both pricing and coverage.
Coverage is often limited to basic coverage like fire, lightning and vehicle impact. Both snow load and wind are often excluded so it is important to review your coverage.
The cost of building supplies and labour has increased significantly over the past several years. It is important that you are insured to full value to avoid potential penalties for partial or complete losses.
If you rent land that includes buildings that you have access to, they are not automatically included in your policy. We need to review your rental agreement and then add the building or add Tenant Legal Liability to ensure that you have coverage for defense and potential suits from the owner or their insurance provider.
Farm Machinery has increased significantly and it’s important to review both the items on your schedule and the values.
Ingestion losses are treated differently than a fire or collision loss and different insurance companies have different approaches to these claims.
Custom farming is excluded on most farm policies so it is important that this is reported to ensure coverage is not voided.
Coverage for irrigation equipment is not automatically included and coverage can differ among companies.
Loss of use coverage can help cover the cost of renting damaged equipment following an insured loss. It is important that you have the right limit to prevent costly delays with your farm operation.
Locking grain bins, fertilizer tanks, and fuel tanks may be necessary for theft coverage to apply.
Commodity costs have increased significantly so it is important to review the value of stored grain, feed, chemicals, fertilizer, and seeds to avoid a co-insurance penalty.
Chemicals and Fertilizers are not automatically insured but coverage can be added for the time they're stored on your farm.
Many farm operations have increased their fuel storage capacity and with the increase in price of fuel and fuel tanks, be sure your policy includes adequate coverage.
Tools that are used off-site require different coverage than tools and equipment in your shop. It’s important to understand the difference and adjust your policy accordingly.
ATV’s require special policies and cannot be added onto farm policies. MPI is the most common option but there are other competitive options available.
Adding a minimum livestock clause to your herd is a great way to save premium but it is important to remember that single animal losses would not be covered.
Boarding non-owned livestock may require additional coverage.
There are insurance companies that offer All Risk Mortality on livestock and some have an option of infertility for newly acquired bulls.
Drone popularity has begun to take flight! Most companies exclude both physical damage and liability coverage with drones.
Has the number of acres you own or rent changed? Your liability rating is based on the total number of acres you farm including owned and rented land. Underreporting the number of acres could result in a claim being denied, be sure to keep your policy up to date.
Pollution liability, a growing concern, is often excluded from standard policies. Environmental Impairment Liability policies can be purchased to protect you from a spill.
Farm Enhancements provide numerous lines of coverage that are very valuable after a large loss. There is a minimal cost and it’s important to review the coverage included with your policy.
We have relationships with several private hail companies that provide competitive rates as well as deductible options. To ensure availability and the best rates possible, contact us early for a quote next growing season!
Your policy will have a full list of all the different types of coverage and exclusions listed in the policy and wordings.
As your broker, we can help you navigate these topics and make sure that your farm policy best suits your specific needs. We encourage you to review these topics and reach out to us to discuss any items that you may have.