Every day on a farm is different some days bring good harvests and smooth operations, while others come with storms, equipment breakdowns, or unexpected losses. Farming is unpredictable, and those uncertainties can take a financial toll. That’s why farm insurance is so important. It provides protection against risks like weather damage, machinery failures, and market fluctuations, helping farmers keep their businesses running no matter what comes their way.
To make sure your farm is fully protected, the best thing to do is to speak with a farm insurance expert. They will help you set up an insurance plan that is tailored to your farm’s specific needs. Every farm is different, and farm insurance specialists understand this. They create customized insurance packages that cover your home, farm buildings, machinery, equipment, livestock, produce, farm liability, and more.
No matter where you farm whether in the Golden Horseshoe, Norfolk, Oxford, Brant, Niagara, or other parts of Ontario—our Morison Insurance farm experts can help you get the right farm insurance policy for your needs.
What Is Farm Insurance?
Farm insurance is a special type of insurance designed for farm owners and people involved in farming. It provides protection for a farm’s valuable assets, including farm buildings, machinery, equipment, livestock, produce, and liability concerns. Because farming operations are different from regular homes and businesses, farm insurance offers specialized coverage to ensure farmers are adequately protected.
Who Needs Farm Insurance?
Farm insurance is necessary for anyone who owns or operates a farm. This includes people who own farmland, rent land to other farmers, or lease land from others to grow crops. Even if you do not have a large commercial farm, you may still need farm insurance to protect your assets and financial well-being.
A standard home insurance policy does not provide the right protection for a farm. A farm insurance policy, on the other hand, covers both your home and your farm operations. It also includes liability coverage in case someone is injured on your property or if you are sued because of farm-related activities. A farm insurance expert will help you determine what type of coverage is needed for your specific farming operations.
Why Do I Need Farm Insurance?
If you own a farm, having farm insurance is crucial. It gives you peace of mind knowing that your farm is protected in case of unexpected losses. Without farm insurance, you could find yourself in a difficult financial situation if something goes wrong. Imagine losing your barns, machinery, or equipment in a fire and not having the money to replace them. You might also face expensive lawsuits if someone is injured on your farm. Having to pay for these losses out of pocket could be overwhelming and might even force you to stop farming altogether.
A well-structured farm insurance policy helps you recover quickly after a loss, allowing you to get back to work and minimize financial damage. If you sell farm products at farmers’ markets, you should also be aware that many markets require proof of insurance before allowing you to participate.
What Does a Farm Insurance Policy Cover?
A farm insurance policy offers a wide range of coverage to protect different aspects of your farm. It typically includes coverage for:
Farm buildings and bunkhouses, Farm machinery, tools, and equipment, Livestock, Farm produce, Your home or primary residence, including personal belongings and detached private structures and Personal liability and farm liability.
Since every farm is unique, it is important to work with a farm insurance expert who understands your needs. They will help you find the best insurance solutions with customized coverage to make sure your farm is fully protected.
Why Is Farm Insurance Important?
If you own a farm, having farm insurance is a must. This type of insurance gives you peace of mind, knowing that if something goes wrong, your farm is protected. Imagine if a storm damaged your barns, or a fire destroyed your equipment. Without insurance, you’d have to cover the costs yourself, which could be devastating. Farm insurance helps you recover quickly and get back to business without suffering a major financial loss.
Besides protecting your property and equipment, farm insurance also covers you in case of legal trouble. If someone gets injured on your farm or if you accidentally damage someone else’s property, you could face a lawsuit. With the right insurance, you won’t have to pay out of pocket for legal fees or settlements. Some farmers’ markets also require proof of insurance before allowing you to sell your products. Having a farm insurance policy ensures you’re covered in all these situations.
What Does Farm Insurance Cover?
A farm insurance policy offers protection for various aspects of your farm, including:
- Farm buildings: Covers barns, silos, bunkhouses, greenhouses, and other structures.
- Farm machinery and equipment: Covers tractors, plows, tools, and other essential machinery.
- Livestock: Provides protection for animals such as cows, sheep, poultry, and horses.
- Produce: Covers harvested crops and other agricultural products.
- Primary residence: If your home is on the farm, it includes coverage for your house, personal belongings, and detached structures like garages.
- Personal liability: Protects you if someone is injured on your farm or if you accidentally damage someone else’s property.
- Farm liability: Covers claims related to your farming operations, such as injuries caused by animals or machinery.
Since every farm is different, it’s important to work with an expert to customize your insurance policy to fit your specific needs. A farm insurance specialist can help you find the best coverage options for your type of farm.
What Types of Coverage Are Available for Farm Insurance?
Farm insurance includes several types of coverage, depending on the size and nature of your farming activities. Here are some key coverage options:
- Primary Farm Residence Coverage: Protects your home, personal belongings, and personal liability.
- Farm Liability Insurance: Covers injuries or property damage that occur on your farm due to your farming activities.
- Replacement Cost Coverage: Ensures that your farm buildings are replaced at full value if they qualify.
- Builders Risk Coverage: Covers buildings under construction to protect against unexpected damages.
- Waiver of Depreciation Coverage: Applies to new, leased, or rented machinery and equipment to ensure you get full value in case of damage
- Loss-of-Use Coverage: Provides funds for renting substitute equipment if yours is damaged due to an insured event.
- Limited Farm Pollution Liability Coverage: Protects against damages caused by accidental pollution from your farm operations.
Insurance brokers work with farmers to create customized insurance packages that offer the best protection at competitive rates. Depending on your farming activities, you may need extra coverage to ensure full protection
- Hydro Poles Coverage: Covers damage to hydro poles, transformers, and transmission lines permanently installed on your farm.
- Livestock Coverage: Protects animals against risks such as fire, falling objects, theft, and heat stress.
- Produce Coverage: Covers stored crops, feed, fertilizers, herbicides, pesticides, milk, and other farm products. It can also cover spoilage of refrigerated produce.
- Ginseng Coverage: Includes protection for ginseng shades, stored seeds, and dried ginseng root during storage, curing, and transportation.
- Equipment Breakdown Coverage: Covers sudden breakdowns of boilers, electrical, and mechanical equipment. It may also provide loss of income if your equipment failure affects production.
- Loss of Income Coverage: Provides financial support if a covered loss (such as a fire or machinery breakdown) prevents normal farm operations.
- Farm Umbrella Liability Coverage: Offers extra liability protection beyond standard coverage limits, including excess automobile liability coverage.
A farm insurance expert can guide you on which of these additional coverages may be necessary based on your farming operations.
Common Farm Liability Risks
Farms come with various risks, and liability exposure is a major concern. Here are some common situations that could lead to liability claims:
- Someone gets injured on your farm
- Your animals escape and cause damage or accidents.
- Visitors get bitten or injured by animals.
- You store other people’s boats, vehicles, or trailers.
- You rent or own multiple farm locations that need coverage.
- You offer public activities like hayrides, roadside stands, or “pick-your-own” produce events.
- You use slow-moving machinery on public roads.
- You perform custom farming, drying, or spraying for others.
- You board other people’s animals.
- You accidentally cause pollution damage to nearby properties.
When discussing insurance, your broker will assess these risks and ensure you have enough liability coverage to protect yourself.
How Many Acres Do You Need for Farm Insurance?
There’s no minimum or maximum acreage requirement for farm insurance. Whether you own a small hobby farm or a large commercial operation, you need coverage to protect your property and operations. If you manage multiple farm locations, each one must be listed on your policy, and liability coverage must be extended to all sites.
A hobby farm typically has 10 acres or less and makes less than $10,000 in annual farming revenue. Even hobby farms need insurance to protect their equipment, structures, and liability.
How Much Does Farm Insurance Cost?
Farm insurance costs depend on various factors, including:
The size of your farm.
- The type of farming activities you engage in.
- The number of farm locations.
- The level of coverage and limits you choose.
- Your claims history.
- The details of your primary residence and farm buildings.
Small farm operations might pay between $1,000 and $5,000 per year, medium-sized farms between $5,000 and $20,000 per year, and larger farms could pay $20,000 or more. An insurance broker will help you compare multiple quotes to find the best price and coverage.
Reviewing Your Farm Insurance Policy
Farmers should review their insurance policies regularly as part of their risk management plan. Every year, at renewal time, meet with your insurance agent to discuss updates to your farm operations. If you build new structures or acquire new equipment, make sure they are included in your policy. Reviewing your coverage annually ensures your farm remains properly protected.
Key Questions to Ask Your Insurance Adviser
- Do I need business interruption insurance: This helps cover lost income if you can’t operate due to a covered loss.
- Do I have enough liability coverage? – Ensure it covers all family members and business partners involved in the farm.
3 Do I have the right outbuilding coverage? – Consider if you would rebuild, replace, or upgrade a lost structure.
- Are my deductibles appropriate? – Adjusting your deductibles can save money while keeping essential coverage in place.
Ways to Save Money on Farm Insurance
To lower your insurance costs, consider increasing your deductibles. Higher deductibles mean lower premiums, but you must be comfortable covering small losses yourself. Also, shop around with a trusted broker who can compare different insurers and find you the best deal.
Keeping your farm in good condition reduces risks and helps you save on insurance. Regular maintenance of buildings, machinery, and electrical systems can prevent costly accidents. Many insurers offer risk assessments and tools like thermal cameras to detect electrical issues before they cause damage. Investing in modern monitoring systems can help prevent breakdowns and unexpected repair costs. Taking these steps ensures your farm remains productive and well-protected.