Farms and other similar meat, dairy and agricultural operations are quite unique when it comes to insurance coverage options. While they are categorized as businesses, the owners – and sometimes staff – often live on the property as well, making it a little bit more difficult to draw a clear line between personal and business property. A personal lines insurance policy does not provide enough coverage for the business aspect of an agricultural property, but a business policy may exclude common perils that homeowners need to be protected from.
In response to this very niche coverage need, there is farm and ranch insurance. As with homeowners’ insurance, farm and ranch insurance covers damages to a dwelling and the personal property inside, as well as third-party liabilities on the property. On top of that, farm and ranch policies provide coverage for property used in the agricultural operations. Additional coverages can be added to the basic policy to fit the specific needs of the business. This added coverage can include protection for structures such as barns, silos, poultry houses and corrals; equipment and supplies like tractors and feed; loss of livestock resulting from certain accidental causes of death; and additional living expenses if the property becomes uninhabitable due to a covered peril.
How do you determine if your client needs farm and ranch insurance?
Farm and ranch insurance can be tailored to cover anything from large multi-generational family farms to tiny urban farms and everything in between. To determine whether your client needs farm and ranch insurance or just standard homeowners’ insurance, there are several factors to examine. Below are some of the factors that would point agents to choose farm and ranch insurance for their clients:
- The presence of additional structures other than a shed or garage, such as an equipment storage building, barn, silo, stable or other livestock housing.
- The owner has livestock living on the property, whether it is their own or someone else’s.
- There are one or more workers on the property taking care of horses or other livestock, or land and building maintenance. (Workers’ compensation insurance may be required if there are multiple employees working on the property.)
- There is a large amount of fencing on the property that would create a costly loss for the owner. (Fencing is not typically covered by a standard insurance policy.)
Farm and ranch insurance is essentially a type of homeowners’ insurance with an added level of protection for business-related activities that are conducted on the property. Because these types of businesses are so closely entwined in the personal lives and property of the owners, it presents more potential liabilities than a typical home would. Farm and ranch insurance is a great coverage option that is specifically designed to address both dwelling and business aspects in one policy, making it the perfect coverage choice for farming operations of almost any size.
Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, strong customer service, and strong relationships with our carrier partners have all helped us to provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (800) 485-0229 to speak with one of our representatives.