Protection Under a Farm Policy
If you have a small to medium-sized spread, a farm policy protects your structures and animals. Like homeowner’s insurance, this policy covers livestock individually or as a herd.
Your livestock is covered if they are on your insured premises, but not while they are in transit or away from your spread.
This policy also protects other personal property, like farming equipment, hay, feed, structures, and your home. Animals like chickens or other birds aren’t considered livestock – they’re “poultry” that must be covered separately.
Protection From Perils
Life happens fast. Your livestock must be covered in a severe emergency like a fire, smoke exposure, or an explosion.
Peril insurance should cover your livestock due to theft, flooding, or earthquake. In addition, if your livestock is hit by a vehicle or dies from a collision with the vehicle transporting them, this is also covered.
You may consider adding a “broad peril” coverage to your policy, depending on the circumstance. This additional clause insures against extreme perils like a boulder falling on the animals, an attack from predators, or even accidental shooting.
Animal Mortality Coverage
Limited animal mortality coverage can reimburse you for livestock that dies from the injury. However, if you need broader coverage, complete animal mortality reimburses you for animals that die from disease or age.
Sadly, livestock dies for many reasons, but this insurance can help you recoup your losses. Read the policy carefully to know what circumstances apply to your animals if they die.
If the livestock dies from a pre-existing condition or if the death is owner-caused, you likely aren’t covered. Make sure your animals are healthy because you’ll need to prove this before renewing your animal mortality coverage.
Protection Against Falling Prices
If you’re a livestock producer who sells your animals as a commodity, this insurance can protect you from financial losses. The policy is backed by the USDA and pays you if the cash price index falls below a specified amount.
For farmers and ranchers who sell their lambs, cattle, or swine for slaughter, your investment is protected against severe losses.
Stray Animals Are Covered
Animals have minds of their own. Sometimes, they stray from your farm or ranch. So this livestock insurance is usually an option. But it’s essential if you’re concerned about animals escaping and being accidentally harmed or dying.
With straying coverage, the livestock’s death can be covered if struck by lightning or a vehicle. It should also cover your animals if they’re shot by a government official protecting the public from possible harm.
Even if you think your animals are safely cooped up or that your fencing is adequate, you never know when one or more might stray away.
Stay Safe From Liability
Since livestock can be unpredictable, it’s essential to include liability coverage with your insurance. This protects you against claims of damage against you or your property.
The purpose of livestock liability insurance is to avoid a costly lawsuit. This additional layer of protection gives you peace of mind.
Your Assets are Protected
Every animal you own is an investment, so livestock insurance is so important. This insurance reimburses you for the current market value of any animal you lose.
Whether it’s fire, flood, or another catastrophe, your hard-earned money must be safe so you can replace any livestock that is lost. Consider extra coverage if you live in a high-risk area or are concerned about changes in livestock prices.