Farm Insurance

Farming may be a rewarding business endeavor, but even daily operations involve significant risks and exposures. Natural disasters, unforeseen accidents, professional errors and market fluctuations can all threaten farms’ financial wellness and ongoing success. Fortunately, farm insurance, often called agriculture insurance, may act as a financial shield, safeguarding farmers against potential incidents that might otherwise include devastating short- and long-term consequences. 

How Does Farm Insurance Work? 

Farm insurance may not refer to a single type of policy but rather a collection of coverages capable of protecting farmers and their agricultural enterprises from financial losses. By paying premiums to their insurance provider, policyholders may receive compensation for covered losses up to their policy limits and excluding deductibles.  

What Does Farm Insurance Cover? 

The details, capabilities and limitations of farm insurance may vary significantly according to policyholders’ needs, preferences and budget. Still, several types of coverage may be advisable for most farmers, including the following: 

• Dwelling coverage—This part of farm insurance may help provide financial assistance in response to covered losses inflicted on a farmhouse or residence.
• Other structures coverage—This coverage may financially protect barns, silos, sheds and garages on a farm.
• Crop insurance—Essential for crop-dependent farmers, this coverage financially safeguards against financial losses related to crops, such as those arising from fires, pests, hail or market price fluctuations.
• Livestock coverage—Farmers can insure their livestock against common perils, including diseases, accidents and theft, to ensure financial stability.
• Liability coverage—This coverage may help pay for legal costs and third-party losses for which a farm was at fault.
• Business interruption insurance—In the event of a covered loss that hinders farm operations, this coverage provides compensation for lost or reduced income.
• Workers’ compensation insurance—Required by law in many cases, this coverage may help pay for medical costs and other losses arising from a farm employee being injured on the job or developing a work-related illness. 

How Much Does Farm Insurance Cost? 

The cost of farm insurance may vary depending on several factors. Before being able to provide an accurate quote for adequate coverage, insurers must thoroughly analyze a farm’s unique circumstances. This process may include consideration of the following: 

• Location
• Size
• Number of employees
• Operational details (e.g., crops or livestock being raised)
• Portfolio contents (e.g., types of coverage needed, deductibles, policy limits)
• Prior claims history 

Get the Right Coverage 

At Clockwork Insurance Services, Inc., three generations of family stewardship and over 80 years of experience have equipped our dedicated staff with the knowledge and expertise to address coverage needs with optimal policies. Contact us today to get started.