Livestock Insurance

Managing a farm with the constant risk of losing your animals is challenging. The risk of losing your farm animals to diseases, catastrophes, and accidents can far outweigh the task of managing them. Livestock insurance is a must for any self-respecting farmer. Livestock insurance will help you sleep better at night, knowing that your animals are safe. Every farmer needs to have proper coverage for all of their livestock, including both pets and the ones that live on the farm full time or visit every now and then.

Livestock insurance covers losses to animals. While these policies are usually meant for standard farm animals like horses, poultry, and cattle, they can also cover losses to exotic and aquatic animals. These policies pay to replace livestock that dies, has to be put down, or is stolen. This can apply to losses while the livestock is on-site or in transport. Livestock policies typically limit how much they’ll cover per animal and for all the livestock. For example, a policy might cover up to $100,000 per animal and $1 million in losses for an entire farm. Therefore, it’s essential to get enough coverage to protect the total value of the livestock.

Protection Under a Farm Policy

If you have a small to medium-sized spread, a farm policy protects your structures and animals. Like homeowner’s insurance, this policy covers livestock individually or as a herd.

Your livestock is covered if they are on your insured premises, but not while they are in transit or away from your spread.

This policy also protects other personal property, like farming equipment, hay, feed, structures, and your home. Animals like chickens or other birds aren’t considered livestock – they’re “poultry” that must be covered separately.

Protection From Perils

Life happens fast. Your livestock must be covered in a severe emergency like a fire, smoke exposure, or an explosion.

Peril insurance should cover your livestock due to theft, flooding, or earthquake. In addition, if your livestock is hit by a vehicle or dies from a collision with the vehicle transporting them, this is also covered.

You may consider adding a “broad peril” coverage to your policy, depending on the circumstance. This additional clause insures against extreme perils like a boulder falling on the animals, an attack from predators, or even accidental shooting.

Animal Mortality Coverage

Limited animal mortality coverage can reimburse you for livestock that dies from the injury. However, if you need broader coverage, complete animal mortality reimburses you for animals that die from disease or age.

Sadly, livestock dies for many reasons, but this insurance can help you recoup your losses. Read the policy carefully to know what circumstances apply to your animals if they die.

If the livestock dies from a pre-existing condition or if the death is owner-caused, you likely aren’t covered. Make sure your animals are healthy because you’ll need to prove this before renewing your animal mortality coverage.

Protection Against Falling Prices

If you’re a livestock producer who sells your animals as a commodity, this insurance can protect you from financial losses. The policy is backed by the USDA and pays you if the cash price index falls below a specified amount.

For farmers and ranchers who sell their lambs, cattle, or swine for slaughter, your investment is protected against severe losses.

Stray Animals Are Covered

Animals have minds of their own. Sometimes, they stray from your farm or ranch. So this livestock insurance is usually an option. But it’s essential if you’re concerned about animals escaping and being accidentally harmed or dying.

With straying coverage, the livestock’s death can be covered if struck by lightning or a vehicle. It should also cover your animals if they’re shot by a government official protecting the public from possible harm.

Even if you think your animals are safely cooped up or that your fencing is adequate, you never know when one or more might stray away.

Stay Safe From Liability

Since livestock can be unpredictable, it’s essential to include liability coverage with your insurance. This protects you against claims of damage against you or your property.

The purpose of livestock liability insurance is to avoid a costly lawsuit. This additional layer of protection gives you peace of mind.

Your Assets are Protected

Every animal you own is an investment, so livestock insurance is so important. This insurance reimburses you for the current market value of any animal you lose.

Whether it’s fire, flood, or another catastrophe, your hard-earned money must be safe so you can replace any livestock that is lost. Consider extra coverage if you live in a high-risk area or are concerned about changes in livestock prices.

It might be time to switch insurers whenever the service that your existing insurer provides doesn’t meet your needs. For example, if you have a poor claims experience or an unexplained rate increase, it might be time to consider other options

If you cancel a previous policy before a new policy is effective, you could run into some serious financial problems.

Contact us today to help you with multiple options to choose from.