Farm insurance is a form of specialized insurance tailored to the protection of agricultural implements, produce, buildings and businesses in the event of disaster, loss, theft, etc.

Provided you’re operating a commercial farm, you’ll likely need a farm insurance policy if you must keep the farm running profitably in the event of unforeseen disasters. Regardless of the size of your commercial farm, having a farm insurance policy will go a great length in keeping the farm operative particularly during challenging periods.

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Largely, a farm insurance policy caters to various farm aspects which may include buildings, livestock, revenue, produce and machinery. Depending on how comprehensive a farm insurance policy is, one may expect it to cover many other aspects as mentioned below:

  1. Animal feeding systems
  2. Farm animal semen
  3. Environmental pollution
  4. Farm produce and labourers
  5. Contamination of agricultural products
  6. Damage done to livestock or agricultural products in transit

Things You Can Expect Farm Insurance to Cover

Money, Home, Coin, Investment, Business, Finance, Bank

A standard farm insurance policy may incorporate the following:

    1. Diversification –a standard farm insurance policy tends to favour diversification by providing cover for various other risks. If you’re giving a shot at diversification, your farm insurance should provide cover for a varying number of external features probably including commercial property, farm shops, agricultural contracting, wind turbines, etc.


  1. Environmental pollution –your standard farm insurance should incorporate protection against the likelihood of environmental pollution. While this sort of pollution is usually accidental, it may be caused by livestock, sophisticated farm machinery, etc.
  2. Smallholdings and working farms –A farm insurance policy normally provides for the coverage of farm buildings, produce and machinery. Besides helping to insure smallholdings and working farms, a standard farm insurance policy can help livestock farmers secure coverage for special risks including (but not limited to) electrocution (of livestock) and theft/loss of stray animals.

Things Your Farm Insurance May Not Cover

You should note that your farm insurance may not provide cover for some tools not directly regarded as farm equipment but which might be useful for certain farm activities. Some of these tools may include your commercial vehicles, certain agricultural vehicles and personal cars.

Farm insurance policies differ considerably just the same way insurance policies vary from one another. Having noted that agricultural vehicles may be excluded from your farm insurance policy, it’s advisable that you obtain the specialized insurance for agricultural vehicles. With the latter insurance, you’re guaranteed coverage for all tractors, farm motors and other agricultural vehicles.

Why Do You Need Farm Insurance?

Generally, insurance provides cover against specified risks and in a similar fashion, farm insurance guarantees you some sort of liability protection in the event of farm equipment damage or certain other events that might hamper the smooth running of your farm.

Challenging seasons or periods may wreak havoc on farm crops, cause farm equipment to falter or pose danger to livestock. Given that your farm is experiencing a challenging period, an appropriate farm insurance policy is likely what should save you from operating at a loss.

If you’re into subsistence farming, you may not want to consider any insurance for your farm. But in the case of commercial farming, you’ll likely require a farm insurance policy for your farm. The reason for this is that majority of the home insurance policies out there do not incorporate farm insurance.


Farm insurance basically covers select aspects of your farm but depending on the insurance company you’re patronizing, you can decide to have a customized insurance package that offers your farm some extended protection.

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