As a farm owner, you put a considerable amount of effort into maintaining your property every day. Therefore, you deserve the peace of mind that comes from farm insurance. As you tend to livestock or oversee crop irrigation, you’ll know you’re protected against the what ifs of the world. However, what will this assurance cost you? For those wondering what aspects of farming affect monthly premiums, go over the following list before applying.

3 Factors That Influence Farm Insurance Premiums

1. Risk Factors

The more opportunities for accidents or injuries that exist on your farm, the more of a liability it will seem in the eyes of an insurance provider. For example, if you run a horse ranch where families can pay for rides—or a vineyard where couples can participate in wine tastings—there will be a greater chance of someone suing your farm to compensate for injuries they suffered on-site.

2. Commercial Exposure

If you sell the products you grow or make on the property, their potential for harming the public will be factored into your insurance premium. For example, insurance providers know that a bacteria outbreak among your romaine lettuce crops could result in a class action lawsuit, and they may protect themselves from that possibility by raising your premium.

3. Location

Farms are just as vulnerable to natural disasters as other residential properties, and many are located in parts of the country that are especially at risk. For example, farms on flat plains in the Midwest are more vulnerable to tornado damage, while those near forests and rivers are more susceptible to wildfires and floods. If your farm is located along a fault line, your insurance premium may be higher because of the risk of earthquakes. Providers will also take into account other location-based risks, such as the local crime rate. However, it is exactly because of these possibilities that insurance is worth the investment.

If you’re hoping to secure farm insurance to safeguard your home and business, turn to Kirk Insurance Agency, serving the Texas panhandle. They’ve been serving clients since 1978 and are proud to remain a family owned and operated agency. Whether you need business, life, car, or farm insurance, get in touch with an agent today by calling (806) 659-2794 for Spearman or (806) 435-2900 for Perryton. You can also learn more about insuring farm equipment and protecting against liability by visiting the website.