Running a farm is no easy feat. Circumstances outside of your control can sometimes result in problems with your crops or livestock, which is why farm insurance is so important. If you’re getting your property insured, you may have some questions about this type of coverage. Here’s more information about it to prepare you for your consultation.

What You Need to Know About Farm Insurance

What does it cover?

Like home insurance, farm coverage protects your physical property and belongings. It also has a liability component to protect you from legal action. For instance, if a person is injured on your farm, you may be responsible for their medical bills and costs associated with missing work. Equipment, livestock, and crops may also be covered. 

What doesn’t it cover?

Your insurance will only be applicable when damage is caused by a covered peril, including fire. These vary by policy, however, so discuss them with your agent for a clear understanding.

When it comes to equipment, common wear and tear or malfunctions due to lack of maintenance are typically not covered. 

How does livestock coverage work?

Livestock is often an important component of a commercial farm.

This type of coverage is available on an individual level, which means each animal would be insured individually. Farmers normally choose this option when they have particularly valuable animals, such as ones for breeding. On the other hand, blanket coverage offers a lump sum for all the livestock on your farm.

Are hobby farms protected?

While they can be covered by farm insurance, you’ll first need to meet a few eligibility requirements. Hobby farms are not permitted to have employees, and all farming activities must be relegated to a single location. They must also be smaller than 500 acres and earn no more than $10,000 per year. 

Pella Mutual Insurance Company in Marion, WI, has been in operation since 1876, becoming a trusted member of the community. They’re equipped to offer farm insurance to operations large and small, and will sit down with you to determine your unique risks and needs. Learn more about their products online or call (715) 754-5039 to schedule a consultation.