According to the latest Statistics Canada Census of Agriculture data, there are 49,431 farms in Alberta, each averaging 1,055 acres of land in 2006. In 2005, 43.6 percent of farmers worked more than 40 hours a week on their farm operations and 54.6 percent of all farm operators had an off-farm job or business. This profile of Alberta farmers suggests that farmers typically work extensive hours for their livelihood, including in off-farm activities. Much of the work that is put into a farm could be lost if the farm is not adequately insured.
An experienced commercial farm insurance broker in Edmonton can ensure that your farm has the coverage needed; recognizing that each farmer’s needs are unique and operations will vary from one location to another. The various features available for farm insurance are outlined here to help you uncover all aspects of your farm needing coverage.
Farm Insurance as a Form of Commercial Insurance
Farm insurance is a particular kind of commercial insurance. It protects a business property, which in this case is a farm, from such perils such as fire, theft, and natural disaster. Basic farm insurance in Edmonton provides property, contents and liability insurance for a working farm used in a business much like the way home property insurance protects a consumer.
Basic Farm Operation Insurance
A basic farm operation policy includes what is normally assumed to be part of a farming operation. It includes coverage for the dwelling on the farm property, its contents, personal and farm liability as well as typical farming activities such as the cultivation of soil, crop production, raising of livestock and the selling of farm products produced on the farm. Special schedules are typically added to insure barns and other infrastructure on the farm. It is also typically important to obtain general liability coverage for injuries, theft and damage done by way of natural disasters such as tornados, storms, snow and ice, and also potential damage caused by fire, lightning and explosion.
Customizing Your Farm Insurance Policy
Customized packages can provide farmers with peace of mind. A custom policy can provide coverage options for loss of use of farm machinery and replacement cost coverage, power interruption, sewer backup coverage, the loss of business income (such as where their business is interrupted due to unforeseen causes or there are unanticipated extra expenses).
Some farms may need extra liability protection if they have commercial activities on the farm, such as hay rides, tractor rides, petting zoos, fruit picking, cow milking, and others which can give rise to potential injury and open the farm up to the possibility of claims against them. These activities, even if they are just seasonal occurrences, ought to be covered in the policy to ensure that there is adequate coverage in the event that a dissatisfied customer or visitor decides to pursue a claim.
Insurance protection is also needed for liability for accidents which happen on the premises and to protect against employer liability. Other farm business considerations might be for damage done by the escape of fuel oil, accidental glass breakage and/or building collapse.
Another specialized type of available farm insurance is protection against livestock mortality. Accidents, illness or disease could otherwise wipe out a farmer’s entire business.
Specialized insurance is also available for custom farming, which is where the custom operator agrees to perform the machine operations on an owner’s land in exchange for a set fee or rate. An advantage to the custom operator is that little or no additional operating capital is needed to farm more acres without having to lease more land.
Along with the above considerations, there may be events which arise that are of a personal nature, but still can have debilitating effects on the farming operations. Some of these include unexpected illness and admittance to a short-term or long term health facility or death of a family member that would normally go about the daily life of the farm. Funeral costs can be incredibly expensive and put farm owners in a very difficult position financially. It is wise in farms where there are only a few key members of the family that operate the farm to seek out insurance that goes beyond life insurance packages and includes funeral benefits and assistance for the business of the farm.
Contact Our Commercial Insurance Brokers in Edmonton
Thinking about all the things that can go wrong may be daunting, but various insurance companies offer varied packages that work for any size farm or business operated out of the farming industry. Seeking out the services of an independent broker is the best way to find the right fit for your needs.
The insurance brokers at MBS Insurance are able to determine what you need and to ensure that you are not paying premiums for what you don’t need. Our insurance brokers in Edmonton can seek out the best packages from insurance companies without any unnecessary bias or allegiance to any particular company. To learn more about farm insurance or other commercial insurance products, contact us at MBS Insurance in Edmonton. Our team is committed to providing exceptional service and great value to our clients. We are also members of the Insurance Brokers Association of Alberta. Contact us today at 780-436-7880.