Despite a smaller scale of operations, you still face a unique set of risks that can threaten your livelihood.
However, with the right insurance policy in place, you can help protect your farm and your future. By working with a knowledgeable insurance agent, you can find the right policy to help mitigate the risks unique to your small farm and protect your livelihood.
Owning a small farm comes with its own set of risks and challenges. One major risk that small farms face is auto accidents. With the constant need to transport equipment, livestock, and produce, your farm vehicles are constantly on the move. Accidents can happen anytime, anywhere, and can cause significant damage and financial loss.
Farm Auto insurance provides coverage for damage resulting from accidents, theft, or other unforeseen events involving your farm vehicles. For example, you are driving your truck filled with produce to the local farmers market, but on the way, a reckless driver hits you. The accident causes significant damage to your truck. With Farm Auto insurance, you may be covered for the damage to your truck. This coverage can help protect your small farm from financial losses and keep your business running smoothly.
Accidents involving people and property on your farm can be a significant liability risk, which can lead to expensive lawsuits and settlements.
This type of insurance can help protect you from financial losses that may result from accidents involving people and property on your farm. For example, if a visitor to your small farm is injured or their property is damaged, they may decide to sue your farm for damages. Liability insurance coverage can help cover the cost of legal fees and any settlement or judgment. By having this coverage, you are prepared for unexpected events that may arise in the course of their farming operations.
As a small farm owner, you face various risks related to your property that can include damage to your buildings and structures from natural disasters. Additionally, you may also face the threat of theft, vandalism, or other forms of property damage. These risks can lead to significant financial losses, which can be devastating for your farm’s success.
This type of insurance can cover the cost of repairing or replacing damaged property, depending on the policy’s terms and conditions. For example, if a severe windstorm damages your barn and destroys your equipment, Farm Property insurance can cover the cost of repairing the damage and replacing the equipment, allowing you to get back to farming as soon as possible. Farm Property insurance coverage can provide financial protection, allowing you to focus on running your small farm without worrying about unexpected losses.
Foreign Object Ingestion
The machinery on your farm is essential for efficient operation but also poses a significant danger if operated while damaged. Rocks and other debris can find their way into your harvesters, for example, causing damage and potentially bringing your operations to a halt. The cost of repairs or replacements can be substantial, and this is where farm Foreign Object Ingestion insurance coverage comes in.
This type of insurance can provide financial protection for your farm in case your machinery or equipment is damaged from ingesting a foreign object. For example, a rock is ingested into your combine harvester, damaging it and forcing you to stop work for repairs. Without insurance coverage, you would be responsible for the repair cost or replacement out of your own pocket. However, with Farm Foreign Object Ingestion insurance coverage, you could file a claim and receive compensation for the damages.
Earnings and Extra Expense
Your small farm relies on the vital equipment and buildings you use every day to get the job done. However, equipment and buildings are vulnerable to a range of risks, including fire, windstorms, and other types of damage. Without proper protection, these risks can cause significant financial burden while you’re working to get everything operational again. This type of insurance can help cover the expenses you may incur while your farm is out of commission.
For example, a fire breaks out in the milking parlor of your small dairy farm, causing extensive damage to the structure and the milking equipment. All milking equipment was destroyed, and the parlor is no longer safe to use. As a result, you need to find another location for milking your cows and transportation for the livestock to the location and back until your parlor is repaired.
Earnings and Extra Expense insurance helps to safeguard your small-scale farm against the additional financial costs related to damages that impact your daily operations. It allows you to continue your operations and ensure your financial stability in light of unexpected situations.
Equipment Breakdown – including Precision Ag
As a small farmer, you rely heavily on your equipment to keep your farm running smoothly. However, equipment breakdowns are a common risk. When your equipment breaks down, it not only causes unexpected expenses but also delays important tasks, such as planting or harvesting crops. Repairing or replacing broken equipment can be quite costly, which can be a burden for small farms that operate on tight budgets.
This type of insurance provides protection for sudden and accidental breakdowns of your farm equipment, including tractors, combines, irrigation systems, and more. For example, your tractor breaks down in the middle of planting season. Farm Equipment Breakdown insurance, can cover the cost of repairing or replacing the tractor. By protecting yourself from unexpected breakdowns, you can ensure your farm continues to operate smoothly, even in the face of equipment failures.
Farm Personal Property Replacement Cost – partial loss
As a small farm owner, you know better than anyone that farming risks can have a significant impact on your livelihood. One of those risks is related to your personal property, which includes all the machinery, equipment, and tools you use to operate your farm. 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.
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 due to a tree falling during a storm. The Farm Personal Property Replacement Cost insurance may cover the full cost of repairing or replacing your tractor, preventing any significant financial loss, 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.
All farms face the risk of pollution. Farm pollution can occur from a variety of sources, such as chemical spills or fuel spills from common above-ground storage tank failures. These types of pollution can harm the environment, contaminate crops, and even pose health risks to farm workers and nearby residents.
For example, the valve on your fuel storage tank fails, leaking gallons of fuel into a neighboring ditch, for which you are found to be legally liable (or “negligent”) for. Without Pollution insurance, if you are found legally liable, you would be responsible for the cost of cleanup and any legal fees that result from the incident. However, with Pollution insurance coverage, you could file a claim and receive financial assistance to help cover these costs, reducing the financial burden on your farm.
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.