If you have recently purchased a farm, you may find yourself wondering if you need farm insurance. Unfortunately, as you do your research, you may find that there are many myths out there about this type of insurance, also sometimes called ranch insurance.
Learning the truth about these myths may help you determine if farm insurance is right for your insurance, as well as the other types of insurance products you may need to successfully insure the operations that occur on your farm. Here are three of the common myths involving farm insurance and the truth surrounding these myths.
Farm Insurance Is the Same as Home Insurance
Farm insurance is not the same as home insurance. If you own a farm with various buildings, livestock and pieces of equipment, you will want an insurance policy that covers all of these items. Home insurance will not cover items like barns, tractors and cows. Farm insurance will cover the home on your farm the same as home insurance does, as well as all of the other buildings and elements traditionally found on a farm. As such, if you have a farm, you will want to purchase farm insurance and not just rely on home insurance.
Farm Insurance Covers Crops
Another myth surrounding farm insurance is that farm insurance will cover your crops. Farm insurance will cover many things on the farm, but it will not cover your crops. If you are growing anything on the farm that you sell, you will want to purchase crop insurance.
Crop insurance protects your crops against weather elements, pests, unexplained poor growth and unexpected price drops in the price of the crop you are growing. If any of these items happen and you only have farm insurance, you will be out of luck. As such, you want to purchase crop insurance to protect the income you plan on earning from these crops.
Farm Insurance Covers Farm Workers
The last myth is that farm insurance covers farm workers. While farm insurance will protect you against personal liability cases if someone falls or is injured on your property, this coverage does not extend to farm workers that you employee on your property.
If you employee ranch hands, people to plant your crops, pick your crops or any other farm job, you are required to carry a workers compensation insurance policy. This policy will cover any of your workers who are injured during the course and scope of their employment. If you do not obtain the right coverage, you may be personally sued if a worker is injured on your property.
If you own a farm, farm insurance can help cover any homes on the property, as well as buildings, such as silos and barns. Farm insurance will also cover any farm equipment you have, such as tractors and seeders, and may cover any animals that you make a living off of on the farm. If you are interested in learning more about farm insurance, contact insurance agents through resources like http://www.wrg-ins.com/.
Share24 July 2017
Growing up in a family of entrepreneurs, I was always interested in how business worked. I spent a lot of time in my family's businesses watching the operations and trying to learn how to ultimately work for myself when I got older. Now that I am an adult, I'm still putting time into learning about entrepreneurship, start-ups, and small business management. I know that there are many people who would love to work for themselves but don't know where to start. I hope this site helps you to work through some of the basics and get started with launching your own business.