Not all farms are large commercial farms that contain hundreds of acres and a fleet of farming equipment and vehicles. A number of people operate small farms on their land, sometimes as a hobby or to generate a side income. If you have a small farm, it is important to know how important farm insurance. Some of the top reasons to purchase farm insurance for a small farm include:
Homeowners Insurance Doesn't Provide Coverage for Farms
Don't make the mistake of assuming that your small farm is covered by your homeowners insurance policy. The majority of homeowners insurance policies does not provide any coverage for farming activities. Thus, without a farm insurance policy you are out of luck if your farmland or any of your farming equipment is damaged. Having farm insurance for your small farm will give you the financial safety net that you need in case anything happens.
Many people who have small farms sell items, such as eggs or produce, to friends and family or at the farmers market. If someone where to become ill after eating something produced at your farm, you can be held liable, which is why it is important to have a farm insurance policy that provides liability protection. Your insurance policy will also provide protection if a visitor to your farm is injured on your property.
Protection from Loss of Income
Since many people with small farms produce income from selling things, farm insurance is essential. Even if you are not earning a full-time income from your farm, it is still a good idea to have a farm insurance policy that provides protection from loss of income. This type of protection will ensure that you don't suffer financial hardship in the event that your farmland or equipment is damaged and can't produce the items that you regularly sell. In order to get the best protection, make sure you keep detailed records of how much income your farm earns.
Supplement to Auto Insurance
If you sell items from your farm at a farmers market on a regular basis, you most likely use your personal vehicle to transport your goods. Some auto insurance policies do not provide coverage when a personal vehicle is used for business purposes. When you have the right farm insurance policy, it can provide the coverage and protection you need when you're using your automobile for farm business. Learn more by visiting resources such as http://www.wrg-ins.com/.