Hitchings Insurance

(419) 423-9145

Hitchings Insurance
A Guide to Large Operational Farm Insurance

A Guide to Large Operational Farm Insurance

January 29, 2025

Share:

Running a large farm operation is no easy job. From managing livestock and crops to ensuring the smooth operation of machinery, farmers must handle countless responsibilities. On top of that, they work tirelessly to mitigate risks and ensure the ongoing success of their farm.

Here at Hitchings Insurance, we understand the unique challenges faced by large-scale farms. That’s why we offer comprehensive farm insurance policies designed to provide the coverage you need to protect your investment. In this blog post, we’ll discuss the key components of a large operational farm insurance policy and how they can benefit your business.

Why Large Farms Need Comprehensive Insurance

Farming is an inherently risky industry. Whether you’re growing crops, raising livestock, or both, you face numerous threats that can impact your livelihood. From extreme weather events to equipment malfunctions, the potential for loss is significant. Insurance is not just a safety net; it’s a critical tool for safeguarding your investment and ensuring the continuity of your operations.

Large farms, in particular, have more to lose. With significant investments in property, equipment, and labor, these operations need specialized insurance policies tailored to their unique needs. A robust insurance plan can mean the difference between weathering a disaster and closing your doors.

Key Components of Large Operational Farm Insurance

Property Coverage

Large farms often have substantial property investments, including livestock, buildings, and equipment. Our farm insurance policies provide coverage for damage to these assets caused by events like fire, theft, vandalism, and severe weather conditions.

Specialized equipment—such as tractors, combines, and implements—is essential for daily operations. A comprehensive policy can ensure that these assets are repaired or replaced quickly, minimizing downtime.

For example, imagine a severe thunderstorm damages your grain storage facility. Without property coverage, you could face tens of thousands of dollars in repair costs. With the right policy, these expenses are covered, allowing you to focus on getting back to work.

Business/Farm Income

Protection against the loss of income due to a covered claim scenario. Coverage to pay your corporations payrolls, profits, and extra expenses is crucial to keeping your farming business open into the future.

Liability Coverage

Even the most diligent agriculturalist can face unexpected threats. Liability coverage protects your farm from financial losses if someone is injured on your property or if your operations cause damage to neighboring property. For example, a visitor might slip and fall in your barn or a chemical spill could impact a neighboring farm’s water supply.

Product liability is another critical aspect. If a product you produce is found to be defective or causes harm, liability insurance can cover legal costs and settlements. This protection is particularly vital for farms that supply food products to retailers or directly to consumers.

Crop Insurance

Large-scale farms are particularly vulnerable to losses caused by adverse weather conditions, pests, and diseases. Crop insurance is designed to mitigate these risks by providing financial protection for damaged or lost crops. This type of coverage can include:

  • Yield Protection: Ensures a minimum level of income based on your historical yields.
  • Revenue Protection: Provides coverage for declines in market prices.
  • Replant Coverage: Helps cover the cost of replanting crops after an initial planting fails.

Given the unpredictable nature of farming, crop insurance is one of the most essential coverages for large-scale operations.

Additional Coverages

Beyond the core coverages, many farms require additional policies tailored to their specific needs:

  • Pollution Liability: Covers costs associated with pollution cleanup, such as a fuel spill or chemical runoff.
  • Cyber Liability Insurance: Protects against data breaches and cyberattacks, which are increasingly common as farms adopt smart technology.
  • Foodborne Illness Coverage: Offers protection if a foodborne illness is traced back to your farm’s products.
  • Livestock Mortality Insurance: Provides compensation for the loss of livestock due to disease, accidents, or natural disasters.

The Role of Technology in Farm Insurance

As farms become more reliant on technology, insurance policies must evolve to cover these advancements. Precision agriculture tools, such as GPS-guided tractors and remote monitoring systems, are valuable assets that require protection. Additionally, farms utilizing drones for crop monitoring or delivery may need specific coverage for these devices.

Working with an insurance provider that understands these innovations ensures that your policy keeps pace with your operation’s growth.

The Importance of Working with an Experienced Agent

Large-scale farming operations have complex insurance needs. Working with an experienced insurance agent who specializes in farm insurance is essential. These professionals can help you:

  • Evaluate your risks.
  • Develop a customized insurance plan.
  • Ensure you have the right amount and types of coverage in place.

For instance, an agent might identify risks you had not considered, such as potential liability from agritourism activities like farm tours or seasonal events. They will also make sure you are not overpaying for unnecessary coverages.

Partner with Hitchings Insurance Today for Large Operational Farm Insurance

At Hitchings Insurance, we understand the unique challenges faced by large-scale farms. Our experienced agents can help you develop a comprehensive farm insurance policy that protects your operation from a wide range of risks. Whether you need property coverage, liability insurance, or specialized policies, we’re here to help.

Contact us today to learn more about how we can support your farm and ensure its long-term success.

Start a quote for farm insurance today!