Dairy farms are one of the most important agricultural sectors.
Fortunately, you can protect your livelihood by investing in the right insurance coverages. By working with your local independent agent, you can protect your dairy farm from unforeseen events, so you can focus on growing your business without worrying about financial setbacks.
As former farm kids, SECURA’s farm experts know the various aspects of dairy farming firsthand, and they have practical knowledge and experience about your insurance needs.
Farm Auto insurance coverage provides comprehensive coverage to help protect your vehicles and trailers.
For example, you’re driving your farm truck and trailer loaded with feed. Suddenly, a deer jumps onto the road, causing you to swerve and lose control of the vehicle. The truck and trailer crash into a nearby ditch, injuring yourself and spilling the feed. Farm Auto insurance coverage, which not only covered the cost of repairing the damaged truck and trailer, also paid for your medical bills. Without this insurance, you would have been left to cover the expenses out of your own pocket.
Farm Liability insurance can provide coverage for bodily injury and property damage liability and can also cover legal expenses in the event of a lawsuit. For example, one of your dairy farm workers accidentally leaves a gate open, causing livestock to escape, resulting in a neighbor’s property being damaged. In this case, the Farm Liability insurance policy could help cover the damages and legal fees associated with the claim.
Farm Property insurance can help protect dairy farm buildings, equipment, and livestock. For example, a tornado causes damage to your farm and several cows are killed in the storm. With Farm Property coverage, you could file a claim to help cover the cost of repairing the barn and pay the market value for the lost cows.
Farm Workers’ Compensation
Your dairy farm faces a range of risks related to your employees, from workplace accidents to illnesses and injuries. These risks can be costly, both in terms of medical bills and lost productivity, and can significantly impact your farm’s overall profitability. Workers’ Compensation provides crucial financial support to those who are injured on the farm, helping to cover medical expenses and rehabilitation costs, ensuring your farm is protected in the event of an accident or injury.
For example, an employee is injured while performing routine maintenance on a milking machine at your farm, requiring hospitalization and rehabilitation. Without Workers’ Compensation coverage, you may have to pay for medical bills out-of-pocket, which can be a significant financial burden, in addition to figuring out how to accomplish your work with fewer workers while their employee is out. Workers’ Compensation ensures workers are able to receive the care they need without facing financial hardship, helping them recover faster and return to work as soon as possible.
Dairy farms are highly vulnerable to milk contamination, which can have severe consequences on your farm’s profitability and reputation. Milk Contamination coverage can help you protect yourself from the financial and legal risks associated with contaminated milk.
For example, a cow that was recently treated with antibiotics is accidentally milked with the rest of the herd. The contaminated milk ends up in the bulk tank and is picked up by the hauler and mixed with milk from other farms, contaminating the entire load. The dairy processing company tests the milk and discovers it is not fit for consumption. The entire load of milk has to be dumped, resulting in a significant financial loss for your farm.
Milk Contamination insurance coverage can help cover costs from the dairy processing company that you would otherwise be responsible for paying.
Foreign Object Ingestion
Dairy farms use heavy equipment, such as combines, to harvest feed crops. Equipment like this is susceptible to various risks during harvest season that can lead to significant equipment downtime and repair costs.
For example, a field rock finds its way into your combine during harvest season. The rock damages the equipment, leading to unexpected downtime and significant repair costs. With the Foreign Object Ingestion coverage, you can file a claim, helping to reduce the financial impact of the breakdown repairs.
Earnings 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 farm.
For example, a fire breaks out and damages the milking parlor, causing significant damage to the building and killing several cows. Your farm is left with the financial burden of having to relocate the surviving herd to another farm with the capacity to milk them.
This coverage can help cover costs associated with temporary relocation and repairs.
Equipment Breakdown – including Precision Ag
Dairy farming is a tough business, and the equipment you use is put to the test daily. Equipment failure can occur for various reasons, including operator error. The result is lost productivity, lost profits, and costly repairs.
This coverage provides protection for equipment breakdowns that are not covered by traditional property insurance policies. For example, your milk cooling system breaks down due to a power surge. The repair costs for the system could be significant, not to mention the loss of income from spoiled milk. With Equipment Breakdown insurance coverage, you would be able to make a claim to cover the repair costs and lost income. This coverage can provide peace of mind for you and help you protect your business from unexpected equipment risks.
Farm Personal Property Replacement Cost – partial loss
One major risk that is often overlooked for dairy farms is damage to the 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 dairy farmers who rely on personal property to run farming operations smoothly. This 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 either.
For example, your tractor is damaged due to a tree falling on it during a storm. The Farm Personal Property replacement cost insurance may cover the full cost of repairing or replacing the tractor, minimizing any significant financial loss to you, outside of your deductible. Additionally, 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).
Pollution coverage can help protect dairy farms in the event of a pollution incident, covering cleanup costs, legal fees, and other related expenses (excluding fines and penalties).
For example, the valve on a slurry storage facility malfunctions and dumps hundreds of gallons of manure into a neighboring stream. You are found legally liable (or “negligent”) for the incident. Without Pollution insurance, you would be responsible for the cost of cleanup and any legal fees that result from the incident out-of-pocket. However, with Pollution coverage, your farm could receive financial assistance to help cover these costs.
Policyholder benefits that work
SECURA offers farm coverages in eight states, and we are proud to support the communities that have welcomed us for more than a century.