Raising livestock can provide a valuable source of income, but it’s a job full of challenges and risks. Even the most successful farms have the potential to face an unpredictable event, such as a severe storm or disease within the livestock. As such, your operations must be adequately protected. When you rely on animals for your livelihood, purchasing livestock insurance is the best way to avoid severe financial loss. This coverage can usually be added to a standard farm insurance policy. The following guide will help explain how it works and why you need it.

Understanding Livestock Insurance 

What Is It?

Livestock insurance is coverage that applies to animals raised for business purposes. It’s intended to help limit the financial risk associated with a variety of perils that can cause livestock loss, such as fire, inclement weather, drowning, sickness, and theft. Policies can typically be customized to include protection for cattle, pigs, horses, sheep, goats, donkeys, alpacas, and llamas. 

What Are the Benefits? 

The main benefit of livestock farm insurance is that you’ll be reimbursed for covered losses that occur on your property or during transit. Livestock animals are a high-value investment, and exposure to disease, accidents, extreme weather, or crime can result in a significant deficit in income. Having coverage will also allow you to prepare a more accurate budget and give you leverage when applying for a loan. Many lenders are more willing to approve financing if they know you’re adequately protected in the event of the unexpected.  

Types of Policies

There are a variety of options to choose from when putting together your livestock farm insurance plan. For instance, livestock mortality coverage will insure animals against death from natural causes, animal collision coverage is for livestock killed by vehicles, and milk contamination coverage is for loss of milk products that you generally make a profit on. Livestock gross margin insurance will protect your bottom line if feed costs rise or milk prices drop and the cost of feeding your animals is more than they are worth. Livestock risk protection covers declining market prices on individual animals, mostly pigs and cattle.

If you’re looking for reliable farm insurance solutions, turn to Texas County Mutual Insurance in Licking, MO. They’ll help you explore different policies and determine which will offer your operation the most suitable protection. Since its opening in 1904, the company has remained committed to providing farmers with personalized coverage designed to deliver financial stability and peace of mind. Call (573) 674-3125 today to set up an initial appointment, or visit them online to learn more about their services.