Farm Insurance: Do You Really Need Insurance for a Small or Part-time Farm?

Running a small or part-time farm can be a rewarding pursuit, whether you’re growing crops as a hobby, raising a few animals for fun or simply trying to supplement your income. But even smaller operations face risks that could threaten your investment and future. Understanding the importance of suitable farm insurance is essential.

What Are the Risks for My Farm?

Many small farm owners may mistakenly assume that their homeowners insurance will cover farm-related losses. This is rarely the case, as business-related damages typically require enhanced coverage or separate policies. Even a modest operation can face unique risks, such as:

• Property damage to barns, sheds, tools or equipment, such as from fire, accidents or theft
• Liability if a visitor is injured on your property or by your animals
• Loss of livestock due to covered events, including disease and animal attacks
• Damage to crops from unexpected perils, such as hail and drought
• Customer illnesses and medical costs arising from selling or distributing spoiled or contaminated products

Without the right insurance, you may be left to cover these costs out of pocket, which can have financial ramifications that may jeopardize your farm’s future and even impact other aspects of your life.

What Does Small Farm Insurance Cover?

Farm insurance typically refers to several types of policies that can be tailored to fit the needs of smaller or part-time operations. Common coverages include:

• Property coverage for farm structures, equipment and supplies
• Liability coverage for third-party injuries or property damage, such as those involving guests, delivery personnel or neighboring properties
• Livestock and crop coverage for animal- and plant-related losses caused by covered events
• Farm vehicle coverage for trucks, trailers and other automobiles used for business purposes

Is Farm Insurance Required?

Certain types of insurance may be legally required. For example, if you employ others to work on your farm, you’ll likely need to retain workers’ compensation insurance. Additionally, if you use motor vehicles for your operations, including personal vehicles, California law mandates that you carry commercial auto insurance. Additionally, if you’ve financed your land, vehicles, equipment or other assets, lenders may mandate certain types of coverage.

Find the Right Coverage

Contact Don Ramatici Insurance, A HUB International Company today to discuss your farm’s unique coverage needs and get a personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.