Reasons for Farmers to Buy Livestock Insurance
For producers and breeders who can’t control the weather, market changes,, or accidents affecting their livestock, having the right insurance coverage is an investment in peace of mind. Livestock insurance is available in blanket or herd coverage and offers a range of policy limits. Scheduled coverage allows farmers and ranchers to list individual assets and ensure adequate coverage for higher-value items.
Peace of Mind
Raising livestock is a large financial investment. Livestock insurance can help to reduce the risk of financial losses by covering the cost of replacing animals that die or become disabled due to sickness, injuries and natural disasters. Specialized policies may also cover livestock away from home, in transit or being transported for sale. Unlike most farm insurance, livestock insurance often covers liability protection, which protects the farmer against lawsuits and damage caused by the animal. For example, liability coverage will pay for injured parties’ repairs or medical costs if a horse escapes its pen and damages someone’s vehicle.
Coverage for Loss of Income
Your livestock is an investment; owning livestock mortality insurance provides the financial protection you need if something unexpected occurs. This insurance can help reduce the impact of market changes, disease outbreaks or weather events on your revenue. Additionally, if you have this coverage, it can make lenders more likely to approve credit. Many livestock policies allow you to tailor your policy to fit your needs and your farm or ranch’s unique challenges. For example, if your livestock are high value, you can purchase individual animal mortality coverage that reimburses you for each animal that dies due to a covered cause. Another option is blanket or herd coverage, which allows you to insure all your livestock for a predetermined amount. Additionally, some policies provide specialized coverages, such as hypothermia and contamination in feed or water. These alternatives can be extremely useful if your property is in a region where natural disasters are common.
Coverage for Damage to Property
Raising livestock is a significant investment, and protecting your animals with specialized insurance is important. Livestock insurance offers financial protection for the loss of your livestock, including coverage for damage caused by a fire or flood. It also covers theft, transportation mishaps and other common perils. Many farmers and ranchers insure their livestock as a herd rather than individually. It provides a higher protection limit for your animals, but you’ll need to keep track of herd size and growth. Adding animal collision coverage to your policy can help offset the costs of injuries that result from an accident on a public road, such as when a car hits a cow. Market price protection is another great option for cattle producers. This option guarantees a floor market price for feeder, fed and slaughter cattle, swine and lambs for a specific period. This type of coverage helps you mitigate a drop in the market value of your livestock and can help you determine your breakeven point.
Coverage for Legal Liability
Because livestock is unpredictable, protecting against liability issues is important. Livestock insurance typically includes coverage that protects the farmer against lawsuits resulting from incidents like injuries, death or property damage caused by livestock. These policies usually cover domesticated animals such as horses, sheep, pigs, chickens and goats, but they can also include aquatic and exotic creatures. The policy covers loss to livestock due to a wide range of perils such as earthquakes, fire, theft, wild animal attacks, transportation mishaps and more. A typical livestock policy offers blanket coverage that ensures all farm personal property inventory is under one overall limit or schedule coverage. It allows farmers to choose the specific animals they wish to insure, including higher-value individual animals. Some insurance companies provide specialized coverage for veterinary services and other occurrences not covered by the general named perils in a standard farm policy. You can learn more about your alternatives from your agent.