Farm Liability – Are you covered?

Farm equipment is one of a farmer’s largest investments. Sometimes the largest. That is what makes farm tractor insurance and other insurance so important to their operation.

As equipment prices increase, many farmers are looking for options to help recover those costs.  We see more and more clients extending their operations to include activities like custom harvesting and hauling for others.  Custom harvesting or custom combining is the business of harvesting of crops for another farm. What many farm owners do not realize, is that these operations likely are not covered by their current farm insurance package.

Most farm insurance companies base their policies on one of two “template” contracts, each written by a different rating and information organization.  What both of these organizations have in common is that custom farming and businesses other than farming are excluded from liability coverage.

Liability coverage is any insurance policy that protects an individual or business from the risk that they may be sued and held legally responsible for something such as malpractice, injury or negligence.

Understandably, farmers are often surprised to find out that while they were performing custom work on another’s field, bodily injury or property damage arising from their activities would not be covered by their insurance company.

Be sure to discuss all sources of income on your farm with your insurance agent, and pay close attention to exclusions in your policy that might affect your operation.