Farmer Shares Risk Areas a Growing Farm Should Not Ignore
For more information, check out “Farming in Challenging Times” roundtable
Your farm is evolving. Great! But it’s no secret that agriculture is an ever-changing industry filled with new and improved techniques, technologies and capabilities. While farmers may be eager to take on the challenge of introducing new practices to improve their bottom lines, they might do so without realizing they need to adjust their insurance to cover the new risks.
Technology is one area where farmers are becoming quick adopters but may not have appropriate insurance to cover the risk they’re adding to their operations.
“Technology continues to evolve quickly, and I think there are a couple of things farmers might not be thinking about,” says Dan Kelley, owner and operator of Kelley Farms in Normal, Illinois and Nationwide board member since 2006. “Specifically, as technology becomes more integrated in traditional agriculture implements, the replacement cost goes up. We all know what the cost of replacing an engine or a tire is, but replacing electronics can be very expensive. They’re expensive to buy and expensive to replace. Making sure your insurance coverage is adequate is important. And so, that’s a key area, where having annual or semiannual insurance risk review with a trusted insurance expert are important.”
Mr. Kelley, along with Jay LaFevre and Amy Fairchild, Farm Certified Nationwide agents, identify other risk areas a growing farm operation should consider.
Ask yourself these questions:
Environment:
- Do you have enough property coverage for a total loss to your property like in the recent Midwest Derecho that cause empty grain bins to collapse like tin cans?
- Have you considered pollution liability?
- What about rebuilding after a weather event? Do you have enough coverage for that?
Machinery:
- Is most of your expensive equipment stored in one location?
- Do you know the replacement cost versus actual cash value?
- Did you update your equipment with additional technology? Is that covered?
Labor:
- Who’s driving the fleet?
- Are all the people who work on your operation covered if an injury occurs?
- What about employee theft and other crimes? There’s coverage for that?
“If you’re adding $15,000 of equipment to your planter this winter, it’s important to call your insurance agent and let them know,” Mr. Kelley says. While a growing farm business brings an enormous sense of accomplishment and pride, it also highlights the need to talk to your insurance agent about securing the proper coverage. For all your growing farm’s insurance needs, you can count on the Farm Certified Agents at Nationwide. Their specialized and unique training will give you the advantage when it comes to protecting your farm and all the work you’ve put in to making it a success.
