Sunday, October 6, 2013

Farm liability insurance: Do you have enough coverage?

BLUE SPRINGS, Mo. — Farm homeowners ought to sporadically review the coverage limits on their insurance, says a University of Missouri Extension agriculture business specialist.
“Over the past few years, market values for land and different farm assets have enhanced well, that has contributed to the expansion of farm balance sheets,” says Whitney Wiegel. “While several farmers’ quality values have enhanced, fewer farmers have taken the time to review their liability coverage to confirm that they're adequately protected.”

Farm insurance protects farm homeowners from claims arising from unintentional injuries or harm to others or property. a rise in total farm assets suggests a desire for enhanced liability coverage to keep up consistent risk protection, Wiegel says.
“Many business farms have AN umbrella contract that has liability coverage up to a precise threshold,” he says.
For example, a farmer WHO has $1 million in liability coverage is protected against liability claims of less than $1 million for the quantity of occurrences and coverage amount per the contract.
“While a $500,000 or $1 million policy could are adequate for several farms ten years past, changes in farm gain and quality values have altered several farmers’ insurance wants,” Wiegel says.

To reduce exposure to loss, Wiegel advises farmers to often examine their balance sheets and coverage limits and raise themselves, “Is my liability coverage limit anyplace close to the overall price of my farm? If AN accident were to occur, would my current contract shield ME from outrageous losses?”
“If the solution to either of those queries is ‘no’ or ‘I don’t recognize,’ it's in all probability time to speak together with your insurance broker,” he says.

In addition, supplemental coverage is also necessary if your farm business has evolved to incorporate untraditional activities like agritourism or direct sales to customers.

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