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Important Farm Insurance Terms
Farm and ranch bureaus represent the interests of agricultural producers and horse owners. If you own a farm, you need to be insured to cover all structures on your land and any horse operations that occur on or off your premises. Listed below are some key terms that you should be familiar with if you plan to purchase insurance for your property.
Brokers - These are individuals that find contracts on behalf of their clients. They usually can process the raw data given to them by the clients to give the bureaus a good risk evaluation of the client.
Consultants – These are independent specialists who aid individuals in finding a plan that will best suit their needs. This is done by assessing the property owned by the client and creating a plan that can get the cheapest, most comprehensive coverage for the client. These professionals often work closely with a variety of insurers.
Estate – This is a common law term for any property that you possess.
Liability- This is a system of risk financing that protects clients from the risks of liabilities from lawsuits. Equine liability is important in protecting against third party insurance claims by covering boarding, breeding, training and instruction.
Loss of Use – This is when the actions of another cause enough damage that you are unable to use your livestock or equipment. This coverage can be purchased to indemnify against any injury or damage so that your income will not suffer greatly.
Quote - This is the estimated cost that is provided to you by the company after you give them your information. This information can help you choose the cheapest and best provider.
Mortgage – This is protection that covers you in case injury or disability prevents you from paying your mortgage.
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Insurance offered for farmers is highly specialized to fit the needs of that trade, and the needs of the individual. For instance, a horse rancher needs coverage like mortality, protection and liability for their high earning equines, cattle and other livestock. An agricultural farmer, on the other hand, needs crop protection, and coverage for any expensive machinery used in the fields. Both of these fall under the category of farm or agriculture insurance.
Starting with crop failure during the Great Depression, the first piece of legislation was passed in 1938 to create a government-run insurance plan. Several subsequent acts in the 1990s and early 2000s allowed for further protection and more insurance options for both commercial farmers and ranchers, and small local ones. The industry grew to include equine mortality, horse stables, and coverage for the entire estate. Total coverage would include not just liability for the prize stallions, but loss of a batch of chickens, injured cattle, or other problems with money-earning animals or livestock.
When farmers or rancher owners are looking to get quotes or enroll with an insurance company, they must first meet with brokers, or agents, to see what is offered. Different insurers will have different packages. One may offer only equine mortality, medical, and accident. Another consultant company may offer extensive insurance for the entire estate, including loss of use for machinery, theft protection, and liability for workers. If the ranch or farm owner does not want to work with large commercial agencies, he or she might work with a specialist from an independent agency. For more information on the field, try checking in with local insurance representatives, or asking farmers that have been in the industry for a long time.