Is your farm’s insurance coverage up-to-date

Emily Wilmes, University of Minnesota Extension

There are tons of insurance options for farmers-some you may need, some you may not

There’s no denying that farming takes a lot of investment, both of time and money. We can get so wrapped up in these investments that we may forget to make sure they are properly insured. I’ll never forget this story I heard a couple years ago from a farmer: The insurance policy on the farm had not been updated for nearly 30 years, and only covered an old pole shed that had been built prior to that. After a fire, the family lost several thousand dollars’ worth of equipment and some livestock, but none of those items were properly insured.

Is the money you have invested in your farm protected? If something like a fire happened at your farm, would your insurance cover it? There are tons of insurance options for farmers-some you may need, some you may not. I don’t claim to be any sort of an insurance expert, so consider this your reminder to meet with someone who is.



Here are some various types of insurance you MAY need,

* General liability insurance. This covers things like bodily injury, property damage, personal injury, product liability, and medical expenses.

* Property insurance. This covers damages or losses of personal property due to fire, wind, hail, and other weather extremes, as well as theft and vandalism.

* Employee insurance. This kind of insurance, obviously, is applicable if you have employees that work on your farm, ANY type of employees-full time, part time, or high school kids that help out a few hours a week.

* Over-the-Road vehicle insurance. Any vehicle licensed by the state requires insurance.

* Crop and/or income insurance. Crop insurance is controlled by both private and public entities.

There are many other types of insurance such as business interruption insurance, employee dishonesty insurance, key employee insurance, and health insurance, among others.

Insurance is a large expense for any farm, but no farm business should operate without it. Again, I am not an insurance agent or expert by any means, so I encourage you to visit with yours once a year to make sure your coverage is up to date. Is that new tractor covered? What about the shed you built last year? Remember, your insurance agent is not on your farm every day, so it’s up to you to keep them informed of changes or additions that need to be made your policy. This is the best way for you to protect your investments, and the future of your farm.

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