What agricultural businesses in Texas should have farm and ranch policies?

Most agricultural businesses in Texas should have some type of farm insurance. Policies are available for most types of agricultural businesses. For example, all of the following might purchase this type of policy:

• Beef cattle ranchers
• Equestrian ranchers
• Specialty ranchers
• Traditional farms
• Urban farms
• Organic farms
• Homesteaders

While all of these businesses could likely benefit from a farm and ranch policy, not every business has the same exact needs. An insurance agent specializing in agricultural businesses can help each business customize a policy to its specific needs.

What coverages are included in farm and ranch policies?

Farm and ranch policies typically come with multiple coverages, reflecting the multi-faceted aspect of working in agriculture. Depending on a polciy’s specifics, it might offer protections like:

• Barn and Outbuilding Coverage: May protect facilities such as barns, stables, silos and other related structures from damage or loss.
• Ranch Contents Coverage: May protect equipment, machinery, feed, livestock and other assets necessary to ranch or farm operations.
• Commercial Vehicle Coverage: May protect ranch- or farm-owned vehicles, such as pickups, flatbeds, box trucks and trailers.
• Livestock Coverage: May protect livestock on a ranch, against catastrophic events and specific causes of death. Might provide coverage for a group of animals, or cover specific animals individually.
• Equipment Breakdown Coverage: May protect against unforeseen breakdowns of critical machinery. Might provide coverage for tractors, harvesters, irrigation systems and other essential equipment.
• Loss of Business Income Coverage: May protect against prolonged income loss 

In addition to the farm equipment insurance and other coverages that protect a ranch’s assets, farm liability coverages that help insure against lawsuits are also typically included in policies. Some liability coverages include:

• General Liability Coverage: Might cover everyday accidents occurring on a ranch’s property that injure a third party.
• Product Liability Coverage: Might cover, products manufactured or processed at the farm if they injure customers.
• Commercial Umbrella Liability Coverage: Might cover especially large lawsuits, by offering supplementary protection beyond basic liability limits.

When the owner lives on their ranch or farm, certain personal insurance coverages can also be needed. These are primarily to meet the owner’s personal insurance needs, as opposed to the needs of their business. Examples of personal coverages are:

• Household Dwelling Coverage: Could insure primary residential structures like farmhouses or ranch houses located on the property.
• Household Personal Property Coverage: Could insure personal belongings within the house and its immediate yard, such as furniture, clothes, appliances, electronics, kids’ toys and other personal items.

What equipment does farm equipment insurance cover? 

Farm equipment insurance is able to cover a broad array of machinery. Depending on a policy’s terms, it might cover farm-specific equipment such as tractors, irrigation systems, harvesters and bailers. Policies may also protect forklifts, utility trailers and other common equipment.

The one type of equipment that farm equipment insurance generally doesn’t cover is road vehicles. Trucks and vans usually require commercial auto insurance, rather than farm equipment insurance.

How much does insuring a ranch or farm cost?

The rates for ranch and farm policies can vary, with premiums being affected by factors like the business’s scale, location, livestock and crops, equipment and other factors.

To find out how much insuring a specific ranch or farm would cost, farmers can compare quotes with an independent insurance agent who knows these policies well. Independent agents can check custom quotes from several insurance companies.

If you have a ranch or farm in Texas that needs to be insured, contact the independent insurance agents at Johnson Insurance. Our agents will work closely with you to find farm and ranch insurance that’ll protect your business well.