Understanding Agriculture Insurance

The agricultural sector has long been among the US economy’s most dangerous industries. Businesses and organizations in this sector often must account for various perils, including large animals, heavy machinery, sharp tools and hazardous materials. Furthermore, those in the agricultural industry may be at the mercy of unpredictable circumstances, including fluctuating market conditions and volatile weather. Given these potential pitfalls, responsible enterprises should prioritize investing in suitable insurance.

What Types of Insurance Do Agricultural Businesses Need?

The coverage needs of agricultural enterprises can vary significantly depending on their specific operations, financial statuses and relevant perils. Still, several types of insurance may transcend unique circumstances in terms of their importance. Consider how the following forms of coverage may offer crucial financial protection:

• Commercial property insurance—When an accident or other incident damages or destroys your business’s physical property, commercial property insurance can help pay for repair or replacement costs.
• Business interruption insurance—Often available as an addition to commercial property insurance, this type of coverage can help an agricultural enterprise recoup financial losses due to delays or interruptions.
• Workers’ compensation insurance—Given the dangers of the agricultural industry, this type of coverage should be a top priority, as it can help pay for medical bills and other losses following employees’ on-the-job injuries and illnesses. These policies may also be legally required.
• General liability insurance—Should your business be at fault for other parties’ bodily injuries or property damage, this coverage can help limit out-of-pocket losses.
• Crop insurance—This coverage can financially protect your organization from losses involving its harvest, including those caused by fires, floods and hail. Additionally, coverage may compensate you for fluctuating market prices or low crop yields.
• Livestock insurance—If your business’s animals are harmed or killed by a covered peril, this type of insurance can be crucial in helping you limit financial consequences.
• Commercial auto insurance—Any business that uses motor vehicles for commercial purposes should retain this coverage. Additionally, certain levels of coverage may be required by law.

We’re Here to Help

Contact R.M. Bush & Company Inc today to assess your specific coverage needs and secure appropriate policies.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.