Currently there are about 2.2 million farms operating in the United States. And all of these operations require insurance.
What is Farmers Insurance?
Farmers Insurance is protection given to farmers by a company or government agency that guarantees compensation in the event of loss, damage, illness or death.
Unlike traditional insurance, farmers insurance often carries lower rates and premiums. That means lower health insurance premiums, lower car insurance rates, lower life insurance costs, etc. The original thought behind farmers insurance was that farmers deserved lower car insurance rates, because in rural areas vehicles received less use and were less likely to be in an accident. In order to be considered a farm, an establishment must produce and sell at least $1000 of agricultural products during the year.
In addition to common forms of insurance like health insurance, life insurance and car insurance, special policies including things like crop insurance can be purchased. Crop insurance protects against unexpected damage a farmer’s crops my experience as a result of things like fire or severe weather damage. Similarly, product liability insurance covers fresh produce and farm goods. This coverage provides up to $1 million per occurrence in both general and product liability coverage with no deductible and a $2 million annual aggregate limit.
Insurance statistics show that the U.S. agricultural industry is alive and well. In 2014, 1.2 million crop insurance polices were sold. These polices protected over 294 million acres containing more than 120 types of crops.
Of the 2.2 million farms in the U.S., 97% are family owned operations. Having access to affordable insurance that protects them, their property and their products proves especially important. A majority of U.S. farmers (60%) are at least 55 years old.
Farmers insurance companies may also provide long term care policies. Long term care insurance covers the cost of care not covered by health insurance, Medicaid or Medicare. Coverage may be used for the cost of adult daycare, private nurses, nursing homes or hospice care. For farmers approaching retirement age, specialty policies like farmers long care insurance are a great comfort.
If you’re a farmer, or planning on getting into the farming business, make sure you are properly insured. Remember, if you’re eligible, farmers insurance proves more affordable and carry lower interest rates than traditional insurance policies. And when you are designing your insurance policy, make sure you cover all of your bases. Protect yourself as well as your livelihood