Farm & Ranch

A family operated farm or ranch typically has a variety of real and personal property such as their home, farm equipment, livestock and buildings.  For the majority, the most cost effective and efficient way to obtain property and liability coverage is with a package policy (one that combines a variety of coverages in a single contract). Though marketed under a variety of names, these policies will typically have provisions similar to the property insurance and liability insurance sections of a Business Owner's Policy.


Up to the policy limit, the liability section protects the farmer, rancher or similar agricultural establishment owner from claims alleging bodily injury or property damage caused by an incident involving the premises or operations of the insured. You have the option of adding additional coverage through endorsements. For example, if you lease employees from labor-leasing firms, there is an endorsement to add coverage for injury to leased workers.


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The property section of a farm package policy typically provides coverage for dwellings on the farm premises, including mobile homes, household personal property, both scheduled (listed) and unscheduled (unlisted) farm personal property and other farm structures. Mobile agricultural machinery and equipment is covered. Loss of use of any of this property is included when due to a covered cause of loss.  Another type of property insurance coverage that may be relevant for some farming or ranching operations is the Transportation Floater, which provides coverage for an insured’s property while in transit, either while being delivered to the insured or en route from the insured to the customer


The farmer’s package policy does not cover any vehicles designed for use on public roadways. For these, you may need a separate business motor vehicle policy.  A personal auto policy may  provide  coverage for some business use of your vehicle, but is unlikely to do so if the primary use of the vehicle is  business. Vehicles owned by a business are not covered by personal policies at all.


States have varying rules about when an employer must provide workers compensation insurance, including, in some states, rules that are different for agricultural operations than for other businesses. If you have three or more employees, you should check with your state department of workers compensation to see if you are required to provide workers comp insurance.