Unlike homeowner’s insurance, farm and ranch coverage protects your property from perils specific to the agricultural industry. It offers a wide range of coverage options to suit your unique needs. These coverages include property protection that safeguards your buildings and equipment against damage, livestock protection that provides valuable animal support, and general liability protection that helps you cover financial losses from accidents.

Property Coverage

Depending on the client’s needs, ranch insurance can include the following:

• Several property coverage options, including dwelling coverage for farm and ranch homes.
• Personal belongings protection for household contents.
• Farm and ranch business property coverage for buildings, equipment, and tools used in a ranch or farming business operation.

In addition, most ranch policies will include several commercial liability coverages. This level of insurance is often combined into a package policy, similar to a business owner’s Policy (BOP) but specifically tailored to a ranch or farm operation. This offers a much broader level of protection than is typically available through separate policies and can save you money on your premiums. Additional endorsements can also be added to a ranch insurance policy, including fair rental value coverage in case of a loss, identity theft expense coverage, earthquake coverage for farms located near fault lines, peak season coverage for times when the ranch or farm experiences greater than normal inventory levels; and sewer backup/sump pump coverage.

Livestock Coverage

For many ranchers, their livestock is their single most valuable asset. Unfortunately, herds can be devastated by various reasons, including severe weather, disease or accidents. Livestock mortality insurance coverage protects against these risks. It provides reimbursement for losses resulting from the death of your livestock due to listed covered causes, such as fire, lightning, windstorm, hail, collision or upset in transit, accidental shooting, electrical shock, drowning and more. You can get this coverage through blanket or schedule policy options, with the latter usually offering more limits for higher-value animals. You can also list your livestock using a unique identification system, such as an ear tag or name. If you sell your livestock as a commodity, market price protection protects you against declining prices. This option is available throughout the year and is especially useful for feeder cattle.

General Liability Coverage

If you run a dude ranch and welcome guests, it’s essential to have liability coverage. This will safeguard you in case of any injuries or damages caused by your operations or property. For most farms and ranches, a package policy that combines property and liability coverage in a single contract is the most cost-effective and efficient way to obtain coverage. This policy is similar to a business owner’s but is specially designed for farms and ranches. These policies can also include additional coverages as required. The primary assets of family-operated farms and ranches are livestock and buildings. Livestock insurance covers these assets from perils that affect any business, along with risks unique to farming and ranching, such as crop destruction due to hail or the death of livestock.

Business Interruption Coverage

Business interruption coverage (BI) protects against the financial losses incurred by a company if it is forced to shut down after property damage or destruction. It covers operating costs, including potential revenue and rent or mortgage payments, loan repayments, payroll, and taxes — plus extra expenses associated with renting temporary space and training employees to operate new equipment. BI insurance isn’t usually available as a standalone policy; it is bundled within a commercial package or business owner’s Policy, offering property and liability coverage for small to medium-sized businesses. A farm/ranch BI policy will likely include revenue guarantees for growers, which use a grower’s five-year historical average revenues and annual farm reports to provide guaranteed income for a certain period. This type of BI coverage is necessary for any farmer who wants to ensure their livelihood will not be jeopardized if their business needs to shut down.