Managing Your Business Like A Professional

Inherited A Farm? Understanding The Insurance Needs

by Sherri Robinson

If you have recently inherited a dairy farm from a family member, you need to be sure that you protect all of the assets associated with the farm. The best way to do this is by investing in comprehensive and adequate farm insurance. If you're in the market for your own insurance policy to protect the farm, you may not know exactly what you need. Here are a few things to consider as you start shopping for that dairy farm insurance policy.

Make Sure The Animals Are Protected

Running a dairy farm depends largely on the health and safety of the cows that you rely on. As a result, any dairy farm insurance policy needs to provide clear coverage for those animals. This means ensuring that the animals are covered for a variety of losses.

For example, you'll want to be sure that your cows are insured against vehicle injuries. If a cow happens to break through the fence and is struck by a vehicle, your insurance should offer you compensation. This is important because any lost or injured animals could reduce your farm's production.

You should also aim for a policy that extends the protection of your cows to hazards such as fire, lightning, firearm wounds, and even wild animal attacks. Your ultimate goal should be to ensure that you don't suffer a financial loss if anything should happen to your animals.

Look For Protections Against Contaminated Milk

While the cows themselves may be the core of your dairy business, the milk is the fruit. If your milk gets contaminated, either by a sick cow, medication, or even a fault in the processing, you need to be able to recoup what you lost financially on that batch of milk. Talk with your farm insurance provider about what types of inventory protection there may be for your farm. 

Protect Your Farm's Structures And Equipment

Another key component in your farm insurance policy is protection for the structures and the equipment owned by your farm. Whether there's damage to the building from storms or your milking machines malfunction, you should be able to seek some financial award to help sustain your business and repair the damage.

The more you understand about protecting your inherited farm, the easier it will be to keep the operation running and profitable. Talk with your insurance agent about the coverage that you need to ensure that you have a policy that covers your animals, your milk production, and your equipment.

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