With the ever-present changes in technology, weather patterns, and financial impacts, farming could easily be considered a very volatile business. There are also many opportunities for considerable loss of product or inventory. For these reasons, you should maintain farm insurance. From time to time, you will need to evaluate and possibly retool your farm insurance policy so that proper adjustments are made based on any changes. The following are some things to consider when reevaluating your farm insurance policy:
Market Value Changes
As property values increase and market share for your product increases, you stand to lose a lot more if you are underinsured. The policy that would have completely covered your losses a few years ago may not come close today. That is why regular evaluation of your policy, done at least once a year, is a very good habit to keep.
Another issue to consider is your liability coverage. You can opt to get farm liability insurance only to protect your farm from accidental injuries or damage to property. However, liability alone may not be enough to provide full coverage. If you have been very successful in your farming business and have amassed more expensive equipment, regular employees, and the like, it is crucial that you are insured to the point where you can be fully protected should something happen.
Think of All Offerings on Your Farm
Consider all parts of your farm that are outside the scope of agriculture. Have you incorporated a retail business based on your farm? Do you conduct tours for groups and visitors that adds to your overall revenue? Do you host a volunteer program? Think about anything that you do on your farm and consider if you are insured enough to cover those losses should they occur. You may need supplemental coverage for any additional ventures that are conducted on your farm that could sustain loss in revenue, product, or vital services.
Farming is a lot of tough, physically draining work. It can take years to build a farm into a self-sustaining, lucrative business. You not only stand to lose money, but also your sweat equity if a disaster were to happen. Running a farm is a significant investment that you must protect. Farm insurance is the best way to keep yourself and your farm covered. If you have any questions about farm insurance and how much you may need to increase your coverage, make sure to speak to your agent as soon as possible.
Visit a site like http://www.wrg-ins.com/ for more help.