Having the right insurance is crucial for beef cattle farmers to protect their farm, workers, and way of life.
The right insurance can help cover the cost of repairs or replacements in the event of a disaster, and can provide compensation for any injuries or illnesses suffered by your farm’s employees. By investing in the right insurance coverage, you can ensure you’re prepared for the unexpected and continue to operate your beef cattle farm for generations to come.
As former farm kids, SECURA’s farm experts know the various aspects of farming firsthand, and they have practical knowledge and experience about your insurance needs.
Vehicles are essential on your farm. Accidents can happen, and the consequences can be costly. Some risks that you may face include collisions with other vehicles, vehicle rollovers, and vehicle theft.
Farm Auto insurance coverage can help protect your beef cattle farm from the financial fallout of these risks. For instance, if your farm employee accidentally crashes a truck into a neighbor’s fence while transporting feed. Without farm auto insurance, the repair costs and potential claims would burden your beef farm significantly. By having adequate coverage, you can have peace of mind knowing your vehicles and livelihood are protected.
Your beef cattle farm faces a number of liability risks that could lead to serious financial loss, or even bankruptcy. You use heavy equipment, handle livestock, and travel uneven terrain and slippery surfaces, all of which increase the risk of accidents.
Farm Liability insurance coverage is designed specifically for agricultural operations and can provide financial protection in the event of property damage, bodily injury, or other liabilities. For example, if a visitor to your farm is injured by a bull and sues your farm for damages, Farm Liability coverage can help cover the cost of medical expenses, legal fees, and any settlement or judgment.
Your beef cattle farm faces a range of property risks that can have a significant impact on your operations. These risks include damage or destruction to barns, fences, and other structures.
Farm Property insurance provides coverage for damage or loss to a variety of assets on your farm, including buildings, machinery, and livestock. For example, you experience a fire that destroys a barn and feed storage facility. Without property insurance, the cost of repairs or replacing damaged equipment could jeopardize your farm’s financial stability. However, with the right property insurance coverage, your farm is protected against such perils, helping you get back on your feet and resume your operations. Having this coverage in place will help you protect yourself from the financial burden of unexpected property losses.
Farm Workers’ Compensation
Working on a beef cattle farm can be a physically demanding and hazardous job. Farm workers are exposed to various risks that can result in injuries or illnesses, including accidents with machinery, exposure to chemicals and pesticides, and injuries from animals. These risks can lead to expensive medical bills, lost wages, and even legal liabilities for your farm. Therefore, it is important for beef cattle farmers to have Workers’ Compensation insurance coverage to protect yourself and your workers.
For example, a worker on your beef cattle farm was operating a tractor when the equipment malfunctioned and caused an accident. The worker sustained severe injuries and required immediate medical attention. Without Workers’ Compensation insurance coverage, you would be responsible for paying for the worker’s medical bills and lost wages. However, with proper insurance coverage, you can mitigate the financial impact of the accident and ensure the worker receives the necessary medical care. Additionally, the insurance coverage can help protect your farm from any legal action that may arise from the accident.
Foreign Object Ingestion
Harvesters can accidentally ingest foreign objects like stones, metal pieces, or debris while working in the fields. These objects can cause severe damage to the equipment, leading to expensive repairs, downtime, and lost productivity.
Foreign Object Ingestion coverage provides financial protection to beef cattle farms in case of damage or loss to your farm implements. For example, while in the middle of harvest season, your harvester is working overtime to keep up with the demand for your crops. While harvesting a field of corn, the harvester accidentally ingests a large rock, causing significant damage to the machine’s blades and other internal components. Without Farm Foreign Object Ingestion coverage, you would have to bear the full cost of repairs, which can be substantial. Foreign Object Ingestion coverage can help with costs associated with the damage and help pay for repairs or replacement.
Earning and Extra Expense
This type of coverage can help safeguard your income in the event of unforeseen circumstances that affect your ability to operate your beef cattle farm. For example, your beef cattle farm production is suddenly impacted by a fire that breaks out and damages the barn, causing significant damage to the structure and killing several cows. The extra expenses you incur from having to relocate your surviving herd to another farm with the capacity to shelter them, and other off-site operation expenses, can be reduced under this type of insurance.
Equipment Breakdown – including Precision Ag
The equipment used on your beef cattle farm is critical to daily operations, and any breakdown can result in significant downtime and lost revenue. Additionally, repair and replacement costs can quickly add up, leaving your farm struggling to stay afloat. Tractors, harvesters, and irrigation systems are common equipment that is vulnerable to breaking down.
Farm Equipment Breakdown coverage can help protect your farm from the financial fallout of equipment failure. This coverage is designed to cover the cost of repair or replacement of damaged or broken equipment due to a covered loss, as well as any income loss due to downtime. For example, a farm’s well pump/pressure tank failed after an electrical storm. After inspection, it was determined the power surge damaged the electrical components and needed replacement. Farm Equipment Breakdown insurance coverage will help cover the repair or replacement costs out of pocket.
Farm Personal Property Replacement Cost – partial loss
One major risk that is often overlooked for beef cattle farms is damage to your farm’s personal property. “Farm personal property” refers to any equipment, tools, or other assets that are not considered part of the actual farm real estate. These items can be easily damaged by a variety of events, including storms, fires, and theft, and the costs of replacing them can add up quickly.
These risks can be financially devastating for beef cattle farmers who rely on personal property to run operations smoothly. This insurance coverage can help cover the full replacement cost, after a deductible, of replacing partially damaged (“partial loss”) covered items. There is no depreciation deduction on partial losses.
For example, your tractor is damaged due to a tree falling on it during a storm. The Farm Personal Property Replacement Cost insurance may help cover the full cost of repairing or replacing the tractor, reducing any significant financial loss to you, outside of your deductible. The policy’s coverage extends beyond your farm’s physical boundaries, protecting farm personal property from damage or theft while in transit or temporarily stored off-site. (Talk to your independent agent about the distance between your farm and the off-site location.)
Policyholder benefits that work
Common questions about beef farm insurance
What is SECURA’s stance on bulls?
Bulls are large and dangerous animals which account for most cattle accidents. Insureds cannot use them for lease breeding, rodeos or shows, photos are required of bull and fencing, and an animal history is required. These animals are an exception basis and used strictly on the insured’s property only.
What are some of the most common risks that are ineligible in the beef category?
Commercial cattle dealers
Commercial cattle dealers are entities that buy and sell cattle for profit. They typically act as intermediaries between cattle producers and buyers such as feed lots, meat processors, or other dealers. These dealers may purchase cattle directly from ranchers and then sell them to feed lots or other buyers. They play a crucial role in the beef supply chain by facilitating the movement of cattle to various destinations.
Commercial cattle dealers often face specific risks associated with the buying and selling of livestock. These risks include market fluctuations, changes in demand, economic factors, and potential financial losses resulting from unfavorable price differentials. Due to the inherent uncertainties and variables involved in the cattle market, insurance companies may consider these risks too volatile to provide comprehensive coverage.
Feed lots, also known as feed yards, are facilities where cattle are intensively fed for a period before they are ready for slaughter. These operations typically involve large numbers of cattle housed in confined areas. Feed lots provide optimal conditions for cattle to gain weight quickly, primarily through a high-energy diet of grain and other feeds.
Feed lots pose unique risks due to the concentration of animals, potential disease outbreaks, and environmental factors associated with intensive animal husbandry. These risks include the spread of infectious diseases, the need for proper waste management to mitigate environmental pollution, and the possibility of accidents or property damage within the facility. Given the potential magnitude of these risks, insurance companies may consider them too complex or financially burdensome to cover comprehensively.
Sale barns, also referred to as livestock markets or auction barns, are venues where farmers and ranchers bring their cattle for public auction. These facilities provide a central location for buyers to bid on livestock and sellers to market their cattle to the highest bidder. Sale barns typically handle a large volume of animals, facilitating the sale and distribution of cattle within the industry.
Sale barns are often ineligible for insurance coverage due to the risks associated with auctioning livestock. These risks include market fluctuations, financial loss resulting from unexpected price fluctuations during auctions, and potential liability issues related to the handling and transportation of animals. Insurance companies may view these risks as too unpredictable to provide standard coverage, making sale barns ineligible.
SECURA offers farm coverages in eight states, and we are proud to support the communities that have welcomed us for more than a century.