6 Signs You Need to Review Your Farm Insurance Policy
October 17, 2024There is a lot to consider when running farms big and small. Things will change and your agribusiness will evolve over time. It’s important that your farm insurance coverage evolves to keep up. Regularly reviewing your policy and making updates when needed can make sure your coverage continues to meet your needs. Here are a few signs you need to review your farm insurance policy:
1. It’s Been More Than a Year
A lot can change in a year. If it’s been more than a year since you last reviewed your farm insurance coverage, it’s a good idea to prioritize it and check in with your insurance agent. Depending on your situation and needs, there may be coverage gaps that leave your agribusiness exposed and need to be addressed. Conversely, there may be endorsements you no longer need, limits that could be adjusted without sacrificing coverage, or discounts for which you now qualify.
2. Your Policy is Coming Up For Renewal
At the very least, you should be reviewing your insurance policy when it is coming up for renewal. Depending on your policy, this could be on an annual or semi-annual basis. Your insurer should be sending you a copy of your insurance policy Declarations Page before each renewal for review.
The DEC page is considered the “go-to document” for your insurance policy. It contains the most critical information regarding your current coverage. You should take time to look over it when you receive it to make sure everything is correct and covered. Having a discussion with your insurance agent can help make sure nothing is overlooked or missing from your current policy.
In the event that your policy does need to be updated, your insurance agent will be able to help you make those updates so that you have the coverage you need. This type of personalized advice and support is one of the benefits of working with an independent insurance agent, especially one who has experience with insuring farms and agribusiness operations.
3. You’ve Upgraded Safety Measures
Any time you make a change to your property or operations is a good time to review your farm insurance policy. This includes even seemingly minor changes like updating, upgrading, or improving safety measures.
Upgraded heating, electrical, or plumbing systems can affect the value of your property. You want to make sure that the value of your operations in your farm insurance coverage reflects those updated systems.
Installing backup generators, installing security systems, replacing fire alarms, etc. are all maintenance and safety measures that protect your farm and also show insurers that you are a responsible property owner.
With upgraded safety measures in place, you lower overall risk and could be eligible for premium discounts on your farm insurance. Visible signage, maintenance and upkeep, and safety measures like these are also ways farmers can avoid frivolous liability claims.
4. There Are Additions to the Property
Outside of safety and security systems, you also want to review your farm insurance policy when other additions and improvements have been made to the property. Whether it’s the construction of new outbuildings, installing a new roof, or something as simple as repairing a fence, you want to make sure these changes and improvements are noted and reflected in your policy. These are all things that can affect the value and risk factors associated with your operations.
One of the things people don’t know about farm insurance is that a single policy can offer comprehensive coverage for property and equipment and for both personal and commercial assets. Farm policies are equipped to provide coverage for a farmer’s dwelling structure and personal content as well as outbuildings, farm buildings, etc. on the property.
But, your insurance agent needs to be aware of those assets and some of them may need to be specifically listed on your policy or have endorsements added for coverage to be extended to them. Also, keep track of your receipts/invoices for these additions or improvements; your agent may be required to provide details about the improvements and copies of associated receipts to your insurer.
5. You’ve Made a Major Purchase
Another one of the signs you need to review your farm insurance policy is if you have made a major purchase. This could include safety measures, new construction on the property, and improvements. It can also include the purchase of new equipment or even high-value items inside your home.
High-value assets, including artwork, fine jewelry, etc., may need to be specifically endorsed, or “scheduled”, on your policy in order to be covered. Whether via purchasing yourself or receiving as a gift, obtaining valuables is a prime time to review your homeowner’s insurance and it applies to farm insurance as well.
Similarly, you don’t want to wait to add new farm equipment to your farm insurance policy. Making sure these items are added to your policy as soon as possible ensures your purchases are protected and you are covered in case something goes wrong.
6. There Are New Employees
Hiring new employees for your farm can be a good sign that your operations are growing. It’s also a sign you need to review your farm insurance policy. In addition to making sure new hires are added to your farm workers’ compensation, you can also work with your insurance agent to identify anything else that needs to change.
For example, if you are hiring staff to help run a new agritainment venture on your property, you will want to make sure your insurance agent is aware of those changes. You will want to make sure you have the right insurance coverage in place and are taking all the right measures to lower your risk and protect your agritainment investment.
Make Sure You Have the Right Insurance Coverage For Your Farm With Ruhl
These are a few signs you need to review your farm insurance policy. You may not always need to make changes to your policy, but making sure you take the time to check in and evaluate your coverage helps make sure all aspects of your agribusiness operation are covered.
You don’t want your farm insurance coverage to fall short when you need it the most. If you need to review or update your farm insurance, contact Ruhl Insurance, a Division of Horst Insurance, at 717-665-2283 or 800-537-6880. We can help you navigate coverage options for your farm.
Disclaimer: Information and claims presented in this content are meant for informative, illustrative purposes and should not be considered legally binding.