# Do you have farm liability insurance?



## Leex2 (May 29, 2018)

When we bought just the land, nothing on it at all except grass, our insurance agent said we needed liability insurance to cover anyone who comes onto the land to mow, build fence etc. Sounded like a good idea, but in talking to neighbors, none of them carry anything except their homeowner's insurance. Now we are building and have buider's risk insurance for that. The farm insurance is not terribly expensive, $150 per year, but if it's not really necessary, I sure can use $150 elsewhere.


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## NewBerlinBaler (May 30, 2011)

My home-owner/auto policy has $1 million of liability coverage but I've also been carrying a $2 million umbrella policy for years. For a total of $3 million coverage. The umbrella's annual premium is $150 which is chump change for the peace of mind it provides. It covers everything I get involved in - on and off the farm.

What your agent may not have explained is that these policies will pay for legal fees. If you get sued and need a lawyer, the law firm's hourly billing can quickly rack up into the tens of thousands of dollars. Don't ask me how I know this.


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## hillside hay (Feb 4, 2013)

Get it and sleep better at night. A scroll through the chitchat and agribusiness threads will show why it's needed. Many of us have serial trespassers and vandals and other miscreants. Trust me it's worth it. 150 is t gonna get you much else in the ag world.


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## Palmettokat (Jul 10, 2017)

First I am licensed insurance agent but have not been active selling property and casualty insurance for about 16 years. 18 years ago my wife and I built on farm her dad gave her. We got insurance on it as was recommended to you and have never ever considered not having it. It can amaze you what all you can be liable for and often you have nothing to do with the doing of it. You have a pond, child drowns in it you are possibly liable for their death. You have an obviously that is dead and it falls on someone on your land without your permission and you may find yourself liable.

If you are filling a farm tax return you also deduct the insurance from your income. Farm income tax normally requires a "farm income". That is conversation with your accountant which is also a farm income expense.


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## Swv.farmer (Jan 2, 2016)

It's well worth the money.
If you have a trespasser break a leg and Sues you WI be glad you had it.


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## somedevildawg (Jun 20, 2011)

I have liability insurance on land, tractors, trailers, etc.....it's a crazy world.


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## Hayjosh (Mar 24, 2016)

I have liability insurance for my place too. If I were to have a bale fall off a wagon and hurt somebody, or my horses were to get out, or one of my help were to fall off a wagon and break their leg...the possibilities are endless and it's a small price to pay. I wouldn't let the fact that your neighbors don't have it deter you. It just means they're ill-prepared and would be in a world of hurt if something happened to them.


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## danwi (Mar 6, 2015)

The one thing you have to find out is what is covered by homeowners insurance such as house how many acres and any activities, and when you are considered a farm. But either way I would opt for the umbrella liability policy.


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## Leex2 (May 29, 2018)

Ok thanks. It's up for renewal and I need to go over the policy and see exactly what it covers. It's not an umbrella policy but that is something I'll look into also.


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## swmnhay (Jun 13, 2008)

I hate paying insurance and carry high deductibles but I carry high liability insurance plus a 3M umbrella policy.


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## Teslan (Aug 20, 2011)

Yep in addition to that we have irrigation pond liability. One pond is very close to a busy intersection. I can see a bad accident happen and a car fly in there and someone drown then the family sue. Also you as one agent put it when I asked if it would be cheaper to take our passenger vehicles out onto their own policy to save. What if you were backing out of a parking space at the store and accidently hit someone. With just regular auto coverage it wouldn't cover that, but the farm liability would.


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## slowzuki (Mar 8, 2011)

We have 2 million farm liability due to moving equipment on road and atv’s that cross our property. Don’t need to be found guilty to lose big time from a court case.


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## somedevildawg (Jun 20, 2011)

Have to go pay my farm insurance today....damn it. Liability, fire, theft on all equipment and contents of storage barns up to 80k. About 6k a year.....


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## hillside hay (Feb 4, 2013)

somedevildawg said:


> Have to go pay my farm insurance today....damn it. Liability, fire, theft on all equipment and contents of storage barns up to 80k. About 6k a year.....


That seems kinda steep. My Nationwide coverage runs me 1500 per year. My inventory is capped at 50k though and my equipment is only worth about 80k all told. Buildings are 125k 1m liability. Not exactly apples to apples I know. If I had 500k worth of equipment I'd expect to pay around what you do


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## somedevildawg (Jun 20, 2011)

Mine is nationwide as well.....tractors, trailers, balers, rakes, tedders, mowers, trailers are all covered against fire/theft/liability. I think the barn is the most expensive it's covered for theft/fire/liability......been thinking of dropping that coverage to just liability, as soon as I do, I'll have a lighting strike 
Think eq is about 350k plus the barn insurance.


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## hillside hay (Feb 4, 2013)

somedevildawg said:


> Mine is nationwide as well.....tractors, trailers, balers, rakes, tedders, mowers, trailers are all covered against fire/theft/liability. I think the barn is the most expensive it's covered for theft/fire/liability......been thinking of dropping that coverage to just liability, as soon as I do, I'll have a lighting strike
> Think eq is about 350k plus the barn insurance.


Appears to be 4 X's value so 4x's price right in line


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## somedevildawg (Jun 20, 2011)

Probably varies a but depending on locale as well.....idk


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## Palmettokat (Jul 10, 2017)

slowzuki said:


> We have 2 million farm liability due to moving equipment on road and atv's that cross our property. Don't need to be found guilty to lose big time from a court case.


I feel like a dummy for in my posting did not think about the pickup hitting my tractor as he passed in no passing zone and I GOT CHARGED. My farm liability paid it in about a week. Only about $10,000 but believe it or not, I sure was glad I did not have to pay it.


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## Hayjosh (Mar 24, 2016)

Palmettokat said:


> I feel like a dummy for in my posting did not think about the pickup hitting my tractor as he passed in no passing zone and I GOT CHARGED. My farm liability paid it in about a week.


How does that work?


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## swmnhay (Jun 13, 2008)

somedevildawg said:


> Probably varies a but depending on locale as well.....idk


seems like quite a difference out there in insurance rates.I combined my farm,home,vehicle,and liability insurance on one policy for quite a savings.Saved me about $2000 a yr.


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## r82230 (Mar 1, 2016)

I to strongly believe in umbrella liability coverage. As Cy mentions high deductibles, then a high umbrella. You need to remember, where your pocket book comes in to play. The deductible (your pocket book pays), the coverage including the umbrella (the insurance company pays), above your umbrella (your pocket book again, ouch). A million umbrella doesn't seem like much anymore. I'm in the camp of $3M or more. That gives the attorney $1M and the 'victim' that's trespassing $2M, before I have to pay.

YMMV

Larry


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## Swv.farmer (Jan 2, 2016)

3 million should be the minimum.
Don't take much to come to that this day and time.


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