FAQ – Farmowners Insurance

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Do Farmers Need Work Comp?

The short answer is, carrying Worker’s Compensation for farmers is the best way to ensure your are protected in a legal dispute – not to mention, it’s a great way to protect your workers from the inherent dangers of farm work.

Whether it is legally required, however, can be a complicated question. Some states offer exemptions for farmers, but the laws can be very vague and it can be hard to anticipate how a court will interpret them. In Nebraska, for instances, there are instances where case law and statues contradict each other.

In addition, some agricultural activities can disqualify you from exemptions. For instance, if you do custom harvesting on the side, or get paid to feed someone else’s cattle then your operation may be considered commercial rather than agricultural.

Before assuming that your operation is exempt, consult an agent with agricultural and benefits experience in your state to go over all of your operation’s particulars – and remember, even the best agent’s advice is no substitute for the legal advice of an attorney with expertise in the employment field.

Can I Insure Livestock on My Farm Policy?

Generally speaking, a farm policy will cover your livestock as long as you elect to cover them and they’re on your property. You might consider additional coverage for your animals when they’re in transit or away from your farm, and you’ll also need to separately insure any poultry you might have.

For livestock-intense operations, a separate livestock policy will likely be recommended, and for certain types of livestock (mainly beef and pork) government-subsidized Livestock Risk Protection is an instrument that is gaining popularity in the face of volatile markets.

Contact Plummer Insurance to set up a consultation for your livestock operation!

What is Farm Blanket Insurance?

Blanket coverage is a type of insurance that covers an entire list of farm property (in many cases, all of your farm’s property may be covered) up to a coverage limit. It’s a great catch-all for the farm property you might not think about, but its relatively low coverage limits mean you should consider insuring any expensive machinery or specialty livestock you might have separately.

Remember, a blanket policy assumes things like livestock, grain/hay, and equipment are covered unless you exclude them – so if you don’t want them covered

Do I Have to Include All My Equipment on My Blanket Value?

One of the advantages of a blanket policy is its general coverage of farm property without it needing to all be listed out. So, no, you don’t necessarily have to include all of your equipment in your blanket value assessment.

Keep in mind, though, that blanket coverage has limits up to a percentage of the insured value, and keeping it artificially low by leaving certain equipment out of the total value calculation can leave you exposed if a claim exceeds the percentage limit.

For this reason it is recommended that you list any equipment, livestock, stored grain or feed that you would like excluded from a farm blanket policy when you are making that valuation.

Our Agents are experienced in finding the right coverage for your farm.

How Does Liability Work When Renting or Leasing Land?

Generally speaking, the risk of liability for an accident falls on the person who is actually occupying the property where it occurs – in this case a tenant farmer (the rentor) is responsible.

Both parties, however, should work together to mitigate risk. Tenant farmers should consider a farm liability policy that names the landowner as an additional insured; and landowners may be able to cover any gaps with their own farm or landlord liability insurance policies.

Get in Touch with our agents to help navigate the particulars as they apply to your operation.

Can I Lease My Land to Hunters and be Covered for Insurance?

Leasing your land to hunters can be very profitable but it’s important you’re protected in the event something goes wrong. A standard farm policy may not cover the liability presented by non-farming activities like hunting. A hunting lease insurance policy is a relatively inexpensive way to ensure you’re protected in the unfortunate event a hunter is injured while using your land.

Request a Quote for a hunting lease policy for your operation.

Does a Farm Policy Cover Crops in a Grain Bin?

If you have a blanket farm policy, your grain bins and the crops that are stored within them are likely covered. Of course, it’s always a great idea to double check your policy documents or confirm with your agent as to what type of coverage your farm policy contains, and to what limit. A dedicated stored grain policy may make more sense for your operation.

What is Pivot Insurance?

Pivot insurance is a specific type of inland marine insurance policy that specifically covers your mobile irrigation equipment. Since sprinklers can be expensive enough to easily exceed coverage limits on a farm-owner’s property insurance policy, a separate policy for your center pivot sprinklers can help protect the rest of your property when, for example, a catastrophic storm destroys more than one sprinkler.

See Center Pivot Insurance for more info

Do I Need to Insure an ATV, UTV, or Side-by-Side?

That depends – if you have farm property and liability insurance, your utility vehicle or ATV is typically covered under the liability part of that policy as long as you’re using it on your property – however, damages to the ATV because of an accident will not be covered.

If you want damages to your ATV or side by side covered, or if you routinely drive your ATVs on public roads, you should consider discussing a Utility Vehicle, Commercial Auto, or a Recreational Vehicle policy. Farmowner’s liability doesn’t cover the liability for ATVs or UTVs when they are not on your property.

Our agents can help you decide which type of coverage is best for your four-wheeler or Side-by-Side.

Does a Feed Truck Need to be Added to a Vehicle Policy if it Has No License Plate?

It depends on how you use it. If you routinely drive your feed truck on public roads, we recommend you add it to a commercial policy. If it stays on your farm, a (usually cheaper) farm truck policy will likely suffice.

Everyone’s situation is a little different, so it’s best to discuss how you use your feed truck with your agent to determine what coverage makes sense for you.

Do I Need Extra Insurance Coverage if I’m Custom Farming?

Since your custom farming operation takes place on someone else’s land, a typical farm policy might not have you covered. In addition to the added liability of moving from place to place, your mobile equipment and tools in transit will need special coverage when they leave your premises. You also never know how comprehensive your client’s landowner or tenant farmer coverage is, and there are steps you can take to keep yourself protected in the event of those gaps. Custom farming involves a lot of moving parts – literally as well as figuratively – and is a situation where a commercial umbrella policy is definitely worth looking at.

It’s a good idea to talk to your agent about the details of your custom farming work and whether separate insurance or bonding is necessary.

Does My Farm Policy Cover Me if I Have Agritourism Activities?

While agritourism is a great way to show off the farm life while generating additional revenue, the risks presented by inviting the general public onto your land usually aren’t covered by a traditional farm policy. An agritourism endorsement can often be added to your policy to cover these types of operations without adding too much to your premium.

Talk to an Agent about the benefits of an agritourism endorsement.

Is Ingestion Covered on My Harvest Equipment?

A farm insurance policy may protect your harvest equipment from damage due to natural disasters, but it often doesn’t cover damage from rock ingestion. A scheduled insurance option on your equipment specifically can help protect you from this type of damage. It’s best to look at your policy documents and clarify with your agent as to what kind of coverage you already have.

Is Hay Covered on My Farm Policy?

Hay and other animal feed CAN be covered by a farm policy while it’s being stored – but isn’t covered on every policy. Hay that’s already out in the field might be covered under a scheduled farm policy, but it’s best to review your policy details and, if you aren’t certain, confirm with your agent.

Does My Insurance Cover My Livestock When They are in a Trailer?

It can very much depend on what type of insurance you have. If you have a farm policy, your livestock may not be covered while they’re in a trailer and on the move. If you have more comprehensive livestock insurance, they’re more likely to be covered in this scenario.

If you’re not sure what coverage you have, talk to your insurance agent or Let Us Tailor a Policy for you!