What Are the Main Risks of Farm and Ranch Insurance?
In essence, farm insurance basically consists of several different property and liability protections pooled into a single comprehensive policy. It has some of the same things in common as personal liability policies do, but it does not have any of the advantages of personal insurance. It simply has all of the things that you would expect from a general farm and ranch insurance policy, except for the farm and ranch umbrella. You can add to it, subtract from it, or keep the basic plan intact for an extra fee.
Farm and ranch coverage comes with the option of paying for the building to be taken down and rebuilt on your farm or ranch. This is often done for those farms that are very old and in need of a major upgrade. A lot of farm and ranch owners want to build on their land, because it gives them the option to spend their money elsewhere if they want to. Some even decide to expand their operations and purchase additional land and buildings to help pay for the expansion costs. It helps to have a bit of extra farm and ranch insurance cover to cover your assets while you do everything possible to grow your company.
Farm and ranch insurance also protect your assets against damage by animals such as horses and cattle. In addition, your farm and ranch insurance may protect you against lawsuits related to your farm or ranch. If you own a small business that produces farm or ranch products such as vegetables or fruit, this type of insurance may also provide protection from product liability lawsuits. If you have a farm and ranch operation in another state, you may also be covered through your state's insurance department.
Farm and ranch insurance helps you protect your crops, livestock, and equipment. For instance, if a customer dies due to a product you sold that was defective, you may be able to file a lawsuit against the manufacturer. Another benefit of this type of insurance is that it provides additional cover should you need to replace certain products if they are damaged or no longer usable. This type of farm and ranch insurance protects you financially should you need to replace large numbers of supplies or equipment at one time.
Farm and ranch insurance also cover you if you accidentally kill a livestock animal on your farm. It is important to understand that farm and ranch policies generally only cover property damages caused by your equipment or your livestock. that occurs off of your farm or ranch, or that are caused by an occurrence beyond your control.
Other types of farm and ranch policies cover your barns, buildings, fencing, and other outbuildings that house animals and other farm and ranch supplies. Many people think that this type of insurance covers all the farm and ranch products that are produced by your farm or ranch. In reality, some farm and ranch policies only cover specific items such as animals, livestock, and farm equipment, but not all.
Farm and ranch policies usually require that you maintain your farm or ranch. If you take over someone else's land, this coverage is often included in the contract. This policy may also cover damages to any property owned by your family that is situated on your land.
The bottom line is that farm and ranch insurance covers all the types of risk associated with your farm or ranch. Some of these risks are fairly common for any farm and ranch operation, such as fire, theft, or floods, but there are many other risks that are unique to agricultural farming that are not covered by most policies.