What is Agribusiness?
Agribusiness is a combination of the words “agriculture” and “business,” and it refers to any business related to farming and farming-related commercial activities. Types of agribusinesses can range from food product manufacturing businesses, such as flour milling and cheese manufacturing, to trucking businesses, like milk or livestock transportation. This specialized industry needs specialized insurance.
What is the difference between farm and agribusiness insurance?
Farm insurance is intended for insuring personal and farming activities. This includes dairy, swine, grain, and poultry operations. Our farm appetite includes traditional small family farms and large complex farming operations.
Agribusiness is an extension of SECURA’s Farm Lines area. Agribusiness insurance is designed for agricultural businesses that support farming operations. It includes services going in and out of the farm, such as custom farming operations, ag products transport, ag service contractors, and more.
A traditional Farm has a dwelling and farming operations. The insurance need is a combination of personal insurance, as well as the insurance for the farming business. Farm Insurance policies are available to cover many traditional types of farming, but are limited to cover only farming operations with only a few exceptions. Once a farming operation expands into other business ventures they may need a different policy type like a Commercial Agribusiness policy.
Agribusiness insurance in action
A dairy farm milks cows, and during summer, they make their own ice cream to sell using the milk from their cows. The regular farming operation of milking the cows is covered under a traditional farm insurance policy. Once the milk is modified and turned into ice cream, the existing farm policy does not cover this additional exposure. This is where agribusiness insurance would be needed.
Agribusiness insurance coverages
Agribusiness insurance policies offer many coverages to provide protection for the unique exposures these types of businesses have. While coverages vary, some common coverage benefits include:
- Commercial General Liability
- Business Income and Extra Expense
- Workers’ Compensation
- Property Coverage for your Building and Contents
- Commercial Auto
- Inland Marine Coverage for Equipment
- And more!
Are you looking for agribusiness insurance? Find an agent near you to get a quote.