When you have to file a claim on your farm insurance policy, you will go through a similar process as you normally would for a typical commercial insurance policy. This process generally includes calling your insurance agent to file the claim and providing details about the event and your losses.
Approved Farm Insurance Claims
Compensation will only be paid out once a farm insurance claim has been approved by the insurer. In order for a claim to be approved, you must properly provide the right information and remain consistent in retelling the incident. For example, say you file a claim for an injury on your property that a visitor suffers. You tell your insurer one story, but the victim tells another to their medical professional. If there are any inconsistencies, this could affect how quickly a claim is settled or approved.
When Can a Farm Insurance Claim Be Denied?
There are a few reasons in which a farm insurance claim may be denied, such as if an accident is not covered by your policy. For example, there are a few exclusions in most farm insurance policies when it comes to death of cattle and livestock. If your livestock dies due to natural causes or old age, it may not be covered—meaning that a claim for compensation may be denied.
It is also important to remain consistent and available throughout the claims process. If there are any inconsistencies in the story you tell to your insurer and other relevant parties, you could have your farm insurance claim denied or extend the length of the process—which in turn draws out how long it can take to receive compensation.
Some states have laws mandating how long an insurance provider can take before approving and paying out a claim. Be sure to check with your state’s laws if you feel that the claims process with your insurer is taking longer than the maximum, reasonable limit.
Also remember that how compensation is calculated and paid out may vary depending on the area of farm insurance in which you have filed a claim. Compensation for liability, for example, will generally be paid directly to the victim rather than the farm unless expenses are related to defense costs and other lawsuit fees. Speak with your insurance agent if you have any questions about your farm insurance policy.
What Farm Insurance Coverage Do I Need?
Every venture is different, but a lot of farms face similar risks when it comes to operation. Recommended coverages under farm insurance include:
Farm liability is a type of general liability insurance that covers claims against your farm concerning bodily injury, property damage and personal or advertising injury. If a visitor is injured on your farm by a piece of equipment or an animal, liability insurance can help pay for the medical bills and protect you from a related lawsuit.
Farm Dwelling Insurance
Farm dwelling insurance protects buildings you live in that may be on the farm’s property along with attached structures, such as a farmhouse and rental properties. This insurance helps protect you against loss or damage to your livable structures caused by fire, wind, hail, lightning, smoke, theft, vandalism and more.
Does your farm rely heavily on crops for income during certain months out of the year? Damage to or loss of these crops and cause significant financial damage to your farm’s income. Crop insurance helps offer compensation for crops that are lost or damaged due to floods, hail, drought and other extreme weather.
Farm Equipment Insurance
Farms operate primarily with the use of expensive equipment such as tractors and ploughs. Farm equipment insurance can step in and help provide compensation for repairs or replacement if your expensive farm equipment stops working due to sudden breakdowns, fire, bad weather and more.
If you have livestock on your farm, you will need to insure them, as well. Livestock such as pigs, cows and buffalo can be incredibly expensive. If your livestock passes away due to a collision with a vehicle or other accident, livestock insurance can help provide compensation.
Farm Auto Insurance
The majority of farms use trucks and other vehicles to transport equipment and products. Farm auto insurance is a form of commercial auto insurance that helps provide coverages such as comprehensive, collision, liability, medical payments and uninsured/underinsured motorist.
Ask an insurance agent about your farm insurance options and be sure to keep your agent updated about changes in your coverage needs or if you need to file a claim.