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Farmer Insurance Explained

Owning, running and managing a farm is a risky business. There are so many issues that could arise in farming from loss of crops to loss of livestock, damage to buildings and equipment, liability insurance, loss of earnings through weather, that no standard policy can cover a farm adequately. This is why many farmers take out protection.

Farmer insurance takes into account the difference in each farm and the needs of each farmer and provides a comprehensive policy that allows a farm to operate efficiently without having to divert much needed funds to repairs, medical costs or legal costs. Crop farms, river farming, ranches and any other style of farm can receive farmer insurance.

Who is a potential candidate for this type of policy?

Any primary industry professional that owns land that relies on income from crops and livestock can be covered by farmer insurance. An entire year's production can be devastated by one single event.

What typically does it cover?

A standard farmer insurance policy is normally very comprehensive. Liability and medical expenses from any incident that arises from the farm is covered. This covers all your employees as well as any visitors or contractors to your farm. Theft of property and property damage caused by fire, adverse weather and vandalism is covered. Property generally includes any farm buildings, equipment and crops.

What typically does it not cover?

A basic plan typically does not cover, damage to personal property of any employee working on the farm; loss of crops or livestock through accidents or damage caused by other animals; and damage to crops that have not been sprayed by insecticide are rarely covered. In farming there are so many eventualities that may occur you should check with your insurer if you are covered for events that are common to your particular farm.

Additional coverage that policy holders might take out in this area

As farms are very particular operations, other basic insurance policies are normally voided in the context of a farm. Standard home, contents, even health policies are inadequate for farmers as farmers fall into a much higher risk category than the average citizen. If you require further coverage, look for it within your farmer insurance policy and not through an additional policy.

Additional coverage for a farmer insurance policy

Even though a standard farm policy is quite comprehensive you need to see what exclusions exist. These exclusions can end up costing you a lot of money. You may find that farm equipment is covered but specific items such as guns, vehicles above a certain value and custom farming equipment are not covered. .

What does it typically cost?

Farmer insurance is usually a percentage of your total insured cover. The size of the percentage is wholly dependant on the risk factors the insurance company believes to be true for your farmer. Typically, farmer insurance can demand a premium of up to 7% of the total cover. The exact percentages are determined by the exact level of coverage and the insurer you choose to go with. Some premiums can be vastly reduced if you have taken steps to minimize the insurance companies exposure or have a risk management plan in place.

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