What Kind of Insurance Do I Need for My Ranch?

If you have recently decided to buy the ranch of your dreams, then it is time to start thinking about specialty insurance.  Purchasing a generic home or business insurance policy for your ranch is going to expose you to a wide variety of unnecessary risks in the coming years.  Here is a quick look at some of the add-ons that you might want to include in your insurance policy.

Heavy Machinery

Any heavy machinery that is used on your property must be specifically added to your ranch insurance policy.  Even if you do everything in your power to protect that equipment, some variables are always going to be outside of your control.  For larger pieces of equipment, you should consider replacement cost insurance instead of cash value insurance.  Replacement cost insurance will provide you with an immediate influx of cash to purchase a new piece of equipment so that there aren’t any interruptions in your business.

Horses and Livestock

Insuring horses, pigs, and other animals can be a complicated process if you aren’t working with an experienced insurance agent.  The type of insurance that you need for those animals depends on what kind of farm you have.  Working livestock typically needs to be covered with mortality or loss of use insurance.  Smaller animals that are being raised to sell off will most likely be covered by your blanket insurance policy.

Product or Professional Liability

A working farm is a business, and it must be covered like any other company.  Product liability coverage will provide you with a layer of protection against any lawsuits stemming from the products leaving your ranch.  Professional liability insurance, on the other hand, will only be needed if you provide a service such as horse rides, shows, or professional consultations to other farmers.

In addition to these specialty add-ons and upgrades, you must also have umbrella coverage for all of the structures and equipment on your property.  A basic blanket policy is going to cover issues such as theft, vandalism, fires, and certain natural disasters.