For most farms or ranches, the most cost effective and efficient way to obtain property and liability coverage is with a package policy that combines a variety of coverages in a single contract, similar to a business owner policy (BOP), but tailored to a farm or a ranch.
The property section of a farm package policy typically provides coverage for dwellings on the farm premises, including mobile home, household personal property, both scheduled (listed) and unscheduled (unlisted) farm personal property and other farm structures.
There are many other types of property insurance coverage that will be appropriate for some farming or ranch operations such as:
- Transportation floater
- Livestock coverage
- Crop insurance
Up to the policy limit, the liability section protects the farmer, rancher or similar agricultural establishment owner from claims alleging bodily injury or property damage caused by an incident involving the premises or operations of the insured.
Commercial auto insurance
The farmer’s package policy does not cover any vehicles – including cars, trucks or trailers – designed for use on public roads. For these, you need separate a separate policy.