Farms.com Home   Ag Industry News

Properly insuring your farming operations

Properly insuring your farming operations

The three basic components of farm liability insurance

Insuring a farm operation provides an unusual mix of property and liability exposures. It is important to understand the coverages a farm owner’s policy provides, especially within the liability section of the policy.

1. Personal and farm liability

Most farmers live on the premises where they conduct their farming operations. Due to this reality, a farm policy is structured and designed to provide the farmer with personal liability protection, as well as liability for his/her farming pursuits. 

Personal liability can provide protection, for example, if the family dog were to bite a farm visitor. Farm liability, in contrast, protects the farmer from claims brought by a third party for property damage or bodily injury arising from the farm operations. For example, farm liability would provide coverage for a farmer who pulls out of a field with a piece of equipment and strikes an automobile traveling on the road.

2. Business pursuits

Potential coverage gaps and exclusions can exist within a farm owner’s policy – especially if the farmer is engaged in business pursuits that are outside of the policy’s definition of “farming.” Altering farm products to sell directly to the end consumer via a roadside stand is a good example of a business enterprise that most insurance companies do not consider to be a farming operation. 

Most farm owner’s policies can provide liability protection for these incidental business pursuits through the purchase of policy endorsements which extend coverage to these “commercial” areas of the operations.

3. Slip and fall

The medical payments section of a farm owner’s policy is not a true liability coverage because an injured party is not required to prove the property owner acted in a negligent way which resulted in the bodily injury. A medical payment is a “good faith” payment that is automatically offered to any party who happens to injure him/herself on the farm property.

It’s imperative to understand how a farm owner’s policy covers the liability exposures of a farm operation. This knowledge is best gained through consultation with a licensed insurance professional in your state.

Reuben Dourte is an account executive at Ruhl Insurance in Manheim, PA where he specializes in farm and agribusiness insurance risks. He received his Accredited Advisor in Insurance designation in 2015.


Trending Video

US “Flash Drought” Worst in 133-160 Years + Disease taking a Bite out of US 2025 Corn/Soybean Crops

Video: US “Flash Drought” Worst in 133-160 Years + Disease taking a Bite out of US 2025 Corn/Soybean Crops


A dry August and a “flash drought” in the ECB (Eastern Corn Belt) the driest top 10 to 15 years in 150 to 160 years (Ohio the driest in 133 years) plus disease is taking a bite out of the 2025 U.S. corn and soybean crops.
It's going to be an early harvest. This could be the start of the 89-year drought cycle that may have been delayed until 2026 as La Nina maybe returning.
The USDA September crop report is all about record corn ears and record soybean counts but the October USDA crop report will be about pod and ear weights.
Stats Canada reported higher forecasts for the 2025 Canadian Prairies all wheat and canola crops vs. last year based on satellite imagery but are they overestimating production?
The 2025 Great ON Yield Tour and Quebec crop tours are projecting corn and soybean crops below the 10-year average.
China's Vice Commerce Ministry Li Chenggang visits Washington this week as we continue to connect the dots is a positive sign towards a China/U.S. trade deal. But will U.S. farmers have a winter without China as they buy more soybeans from Uruguay/Argentina? U.S. Northern Plain soybean farmers are seeing red with flat prices at $8.97/bu!
U.S. corn exports on record pace up 99% vs. last year.
Fund short covering continues in corn futures bottom is in!