Insurance - Property & Liability Category Guide

Understanding Farm Insurance Needs

Dairy farms face unique insurance challenges. You're protecting not just buildings and equipment, but livestock, stored feed, and the business income that depends on continuous operation. Liability exposure includes visitors, employees, product liability, and environmental risks. Standard homeowner's or business policies don't adequately address these agricultural needs.

Property Coverage

Buildings and Structures

Barns, milking parlors, silos, equipment storage, and other structures. Consider replacement cost vs. actual cash value coverage—replacement cost pays to rebuild, ACV deducts depreciation.

Equipment and Machinery

Tractors, mixers, milking equipment, and other machinery. Coverage should reflect current replacement values and include coverage for breakdowns and off-farm use.

Livestock

Blanket coverage for your herd, typically based on average inventory values. Special provisions may be needed for high-value genetics.

Stored Feed and Supplies

Hay, silage, grain, and other inventory. Values fluctuate seasonally—ensure coverage reflects peak inventory values.

Business Income

Coverage for lost income if a covered event (fire, storm, equipment breakdown) shuts down your operation. Critical for operations with significant fixed costs and debt service.

Liability Coverage

General Liability

Protects against claims from visitors injured on your property, including agritourism guests, delivery drivers, and others.

Products Liability

Coverage if someone is harmed by products from your farm—particularly important for direct milk sales or value-added products.

Employer's Liability

Protects against employee claims not covered by workers' compensation.

Environmental Liability

Coverage for pollution events, manure spills, or contamination claims. Increasingly important given regulatory environment.

Do You Have Adequate Coverage?

Review your insurance annually and consider:

• Have property values been updated recently?
• Are new buildings and equipment added to policies?
• Is business income coverage adequate for your current operation?
• Have you added activities (agritourism, direct sales) that need coverage?
• Are liability limits sufficient given your assets at risk?

Cost Considerations

Farm insurance costs vary widely based on property values, coverage types, location, and claims history. Expect to pay $3,000-15,000 annually for comprehensive coverage on a typical family dairy. Large operations with extensive equipment and buildings may pay $20,000-50,000 or more. Work with an agent who specializes in agricultural accounts.