Why Farmers Renting Land Need Farm Insurance Coverage
Just like landowners, lease-holding farmers need to have insurance coverage for their farm personal property that’s used and stored on rented land. Because accidents happen on the farm, it’s key to know you’ve got the right coverage for your operation.
What Lease-holding Farmers Need to Know About Insurance
As a land-leasing farmer, getting just the right coverage for your operation can be tricky. That’s because so much of your insurance needs are the product of the lease you’ve agreed to with the landowner. But even with a well-defined lease, you may still have questions for your insurance company. If your landowner’s lease requires you to get a farm insurance policy of your own, there are a few things you need to understand:
A farm insurance policy protects like renters insurance when you’re renting farm land. Much like a standard renters insurance policy, you’ll have protection for everything you use to keep your business running smoothly. From office equipment to spare parts you’ve stored in a rented shed, you’ll have peace of mind knowing your investments are covered, with the addition of a personal property endorsement on your policy.
You’ll have medical expense coverage. Suppose that you’re renting a home from the landowner and your guest slips on the stairs, breaking their wrist. With this coverage, you’ll have medical expense insurance to help pay for bodily injury accidents — and your own savings can remain protected.
You’ll have additional living expense protection. If the landowner’s home becomes uninhabitable while you’re renting it, you’ll have limited coverage that can help pay for the costs of hotels or other living accommodations.
Your farming policy can help you continue operations. Suppose you have a fire loss to your tractor while you are planting. The result is damage to the tractor, with costs for repair and replacement totaling $8,500. With the right policy, you’ll have coverage that pays for repairing the majority of your tractor expenses after the deductible’s been met. That can translate into your continued ability to pay rent and meet the financial obligations of your operation.
Stolen items can be protected. If a theft of your equipment, personal effects or other items should occur — and it qualifies as a covered loss — you’ll be protected once your deductible’s been paid.
Liability Insurance Is a Business Necessity for Farmers That Rent
The fact is, farm work is risky. And if you’re working for yourself as a lease holding farmer with employees of your own, you know how easily accidents can happen. Insuring your operation with an additional farm/ranch umbrella liability policy can help you achieve your goals and protect your business above the standard liability coverage limits. Here are a few ways that farm liability umbrella insurance can protect your enterprise:
Coverage is customizable. You’ll be able to define the terms and limits of the protection you need to keep your investments protected. Coverage is available in million-dollar increments, from $1 million to $10 million or more.
Extra protection above your existing general liability insurance. You’ll find real peace of mind knowing that you can navigate injuries and lawsuits if the unexpected should happen and you’re faced with costly liability claims.
You’ll have property damage coverage. If you should cause damage to your landlord’s buildings or structures, and the loss is covered by an in-force business liability policy, you’ll have coverage. This is also the case for the smoke and fire damage resulting from your or your guest’s negligence. File a claim and your insurance company can help you navigate the rest.
You can specify insured parties. By giving you the freedom to identify individuals for coverage in your policy, anyone named in it will be protected by our farm/ranch umbrella insurance.
Wide-angle coverage when you need it most. Our policies will cover liabilities for physical injuries to others, damage to others’ property, and situations if you’re liable for violating someone’s privacy or defaming their character.
Coverage that vacations with you. Our farm/ranch umbrella policies also cover injuries to others and damages to other property that you’ve caused wherever you happen to be. If you’re out of state using a boat that’s not your own or abroad in a rented car and cause an accident, you could be covered.
Finding the right coverage doesn’t have to be complicated. You’ll only need to check in with your local American Family Insurance agent and build a plan that suits your business.