Growing fruit and vegetable crops can be a challenging and unpredictable task for farmers.
To help mitigate these risks, trade-specific fruit and vegetable farm insurance can protect against unexpected losses while maximizing your chances of success during planting and harvest season.
Fruit and vegetable farms face many risks when it comes to automotive accidents. Farmers often use vehicles to transport produce to market, deliver equipment, and move workers around the farm. For example, a truck hauling a heavy load of apples takes a turn too sharply and overturns. Thankfully the driver is uninjured, but there is damage to the truck and the fruit. Farm Auto insurance could cover the cost of repairing or replacing the damaged truck and paying medical bills for any injuries sustained to the driver during the accident.
This type of insurance is designed to cover a variety of liability risks specific to your industry, and can provide financial protection in the event that a claim is filed against you.
For example, a visitor to your farm is injured or their property is damaged while on your property, and they decide to sue you, your Farm Liability insurance policy could help cover the costs of their medical expenses, legal fees, and any settlement or judgement you may be required to pay. With this type of coverage, you can ensure your farm stays financially stable even in the face of unexpected legal challenges.
Despite taking all necessary precautions to protect your property, things beyond your control can happen. These situations can lead to farm property damage to buildings, barns, and other structures. The cost to repair and replace can be extensive.
For example, a severe windstorm causes a tree to fall onto your barn, damaging the roof and walls. Farm property coverage covers the cost of repairing or replacing the damaged building, allowing you to focus on running your farm.
Farm Workers’ Compensation
Farm Workers’ Compensation insurance can help cover the costs associated with workplace injuries or illnesses, including medical expenses, lost wages, and rehabilitation costs.
Farming involves manual labor and heavy machinery, which can put your employees at risk of injuries or accidents. This is especially true during peak harvest season when there is pressure to work quickly. Injuries can result in lost time, medical bills, and potential lawsuits if the injured worker decides to pursue legal action.
For example, one of your employees suffers an injury while working on a harvester. With Workers’ Compensation coverage, you can rest assured that the cost of their medical bills and lost wages may be covered. Not only does Workers’ Compensation insurance protect your farm, but it also shows your employees that you value their safety and well-being, making it a worthwhile investment for any farming operation.
Foreign Object Ingestion
As a fruit or vegetable farmer, there are a multitude of risks when it comes to foreign object ingestion. These risks can include anything from rocks and other debris that accidentally get ingested by your equipment, possibly causing equipment damage. The consequences of equipment damage can be costly, leading to unexpected repairs and downtime that can impact your farm’s productivity and profitability.
This type of insurance can help protect your farm from the financial consequences of equipment damage caused by foreign object ingestion. For instance, if a rock were to get caught in your fruit harvester, and caused significant damage to the equipment, farm Foreign Object Ingestion insurance coverage could cover the cost of repairs or replacement.
Earnings and Extra Expense
One of the biggest risks you face is the unpredictability of your earnings. Your income can be affected by a wide range of factors, and without insurance, you would have to shoulder the financial burden out-of-pocket. This could be an extensive financial setback that could potentially bankrupt your farm. This type of insurance can provide you with financial protection by covering your lost earnings and unexpected expenses that may arise.
For example, a windstorm damages your cold storage facility, rendering it inoperable. With Farm Earnings and Extra Expense insurance, expenses related to finding and renting an alternative storage facility may be covered. Even expenses to help minimize downtime may be covered, like expedited shipping fees for replacement parts or upcharges from repair shops for a quicker turnaround time. This can help you maintain your financial stability while repairing your property.
Equipment Breakdown – spoilage coverage
As a fruit and vegetable farmer, you rely heavily on your equipment to keep your operation running smoothly. Farm Equipment Breakdown insurance is an essential investment for farmers as it provides coverage for unexpected equipment failures, malfunctions, and breakdowns. This type of insurance can help protect farmers from financial losses, which can result in significant costs and disruptions to your operations, especially with your cold storage facilities during harvest season.
For example, the refrigeration condensing unit in a cold storage facility can have a significant impact on the quality and safety of harvested fruits and vegetables stored in the facility. Without proper refrigeration, the produce may spoil and become unsellable, resulting in a loss of revenue.
Farm Equipment Breakdown insurance can help mitigate these losses by covering the direct loss to the unit and the resulting spoilage of the produce. This coverage can protect against a devastating impact on your bottom line.
Farm Personal Property Replacement Cost – partial loss
One major risk that is often overlooked for fruit and vegetable 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 equipment can add up quickly.
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 either.
For example, your tractor is damaged by a fallen tree during a storm. The Farm Personal Property Replacement Cost insurance may cover the full cost of repairing or replacing the tractor, preventing any significant financial loss to you. Additionally, this coverage extends beyond the farm’s physical boundaries, protecting your 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.
One of the main challenges fruit and vegetable farmers face is the risk of pollution. Farm pollution can come in many forms, such as overspray drift, also known as chemical drift. This can lead to a significant, unexpected circumstance for you to resolve.
For example, you use pesticides to control pests and weeds on your crops. Unfortunately, due to weather conditions, the pesticide drifts onto your neighbor’s property, damaging their strawberries. The neighboring farm incurs a significant financial loss due to the damage caused by chemical drift.
Farm Pollution insurance can protect you from the financial risk associated with the damage caused by the overspray drift. The insurance policy could cover costs related to the damage caused to the neighbor’s property, up to the policy limits.
By having this insurance coverage, you can safeguard your farm from the financial risk associated with pollution incidents, allowing you to focus on your farming operations.
The Peak Season insurance coverage is designed to protect your farm against potential losses during specific periods of the farming cycle. The coverage is typically used to insure harvested crops and other farming assets during peak planting or harvesting seasons when the risk of loss is higher.
The coverage may vary depending on your farm’s specific needs. It can protect against fruit and vegetable losses right after harvest, or seeds and chemicals during planting season. Insurance is an important risk management tool for fruit and vegetable farmers, helping protect your livelihood and ensure the long-term sustainability of your operation.
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.