If you’re a farmer, your life is set at a different pace than the rest of society. You rise early, and you work late. Between planting, livestock, and harvest, the demands that you face on a daily basis don’t leave a lot of time for much else, let alone insurance. And let’s be honest, how often do you really think about your insurance? Probably not that often, right? Yet, you pay a decent chunk of money every month for protection that you know is necessary. But are you certain you have the correct coverage or even enough?
At Farm Bureau Insurance we take farming seriously. Did you know that the very first farm policies (in existence!) were created by Farm Bureau Insurance? And you know what’s even cooler? Farmers wrote the policies – not insurance agents. This is proof that our farm policies account for the complications of farming firsthand.
In today’s blog post, we will share some important reminders and details you won’t want to overlook as you continue operating your farm.
Who Owns What?
Many farms are owned by separate entities – maybe one business owns the farmland, another owns all the farm equipment, and another owns all of the farm buildings. If this is similar to your situation – it is important that you verify that the name of each entity is on your farm or auto policy. There must be a policy that names each unique business for liability insurance and other insurance coverages.
Inform your agent as soon as possible if more than one entity has ownership in your farm. Here is what we will need:
● Legal name of each entity
● Who is in the partnership
● Who the members are in the LLC
● Who the owners are in the corporation
● Federal ID number for each entity
● What each entity owns – is it land, farm equipment, buildings, dwellings, etc. Be specific!
● Who does the title of your trucks, semi, trailer, or cars show as the owner?
As another reminder, this all applies to Worker’s Compensation insurance as well. Whoever’s name is on the policy should be the name of the entity that is employing and paying the employee.
Do You Have Enough Pollution Accident Coverage?
The issues revolving around pollution are getting more and more serious – and the fines are pretty hefty to go along with them! Whether it is liquid manure, chemicals, gasoline, or diesel fuel, your farm needs to be protected. Many farms have $500,000 of bodily injury insurance and property damage liability and $100,000 of sudden and accidental pollution liability insurance. The question is whether or not that would be enough if something went wrong on your farm.
We understand that you take every precaution to make sure that a pollution accident does not happen, but the problem is that we can never be 100% certain it won’t. Be sure to review your policy with your agent to verify that your assets are properly protected. You have the option of enhancing your farm policy to $2,000,000 of bodily injury and property damage liability and $200,000 of pollution liability insurance for around $430 a year. This investment may be the protection you need.
Are Your Unattached Truck Parts & Accessories Protected?
The value of unattached truck parts and accessories in storage has recently increased significantly. However, it is important to note that these parts and accessories are not covered under your FBI Business Auto Policy. In fact, they are only covered for $5,000 under your FBI Farm Owners Policy. If you have more than $5,000 in unattached truck parts and accessories and want proper coverage follow this process:
● Create an itemized list by category of what those UNATTACHED parts and accessories are.
● Sign the list and send it to your agent.
● Your agent will calculate the increased premium cost and added proper coverage to your policy.
Unattached truck parts and accessories may include transmissions, axles, tires and rims, oil, lube and filter, potato and grain boxes, brake parts, misc.
Do You Have the Proper Coverage for Your Irrigation Pivots?
As much as you may not want to think or deal with insurance, we promise it is worth it. If you experience a loss, our number one goal is to be able to pay you what it is going to take to adequately repair or replace your equipment. Challenges arise quickly if you do not have the appropriate amount of coverage.
FBI underwriters and adjusters have recently told us that irrigation pivots need to be covered with the value of $12,000 - $14,000 per span to accommodate the cost of repair or replacement. They have also guided us to encourage farmers to verify coverage for phase converters/electrical panels/ wells/frequency drive/pump, motor, panel, wiring & base. If you have recently made a purchase or if you want us to review your coverage, please send us the following:
● Description
● Location
● Value
Our hope is that this information gives you the necessary reminders and insight to make the best decisions for your farm. If you have any further questions about your farm insurance, our team at J.R. Schultz Agency is available to answer.
Contact us today!
