3 Farm Insurance Mistakes That Could Cost You

3 Farm Insurance Mistakes That Could Cost You

09:14 10 February in Business, Crop

Your farm is a source of duty, pride and income, and as a dedicated grower you want to protect your investment with the best insurance coverage possible. However, in reality, there are several common mistakes made by unsuspecting farmers attempting to do just that.

Whether looking for the right insurance coverage for your needs or ensuring that you always get the best rates possible, there are certain things you should and should not do for the best results.

Here are three of the biggest farm insurance mistakes that can end up costing you more than you bargained for.

  1. Not working with an agent that specializes in farm insurance.

In your search for the ideal insurance policy for your agribusiness needs, you may think that any agent will do. The truth is that creating the right insurance policy for an agriculture business requires specialized knowledge and skill.

Imagine two business owners who want insurance coverage for their very different entities. One owns a restaurant and the other owns a crop farm. If both of the business owners visit a general insurance company for a quote, chances are at least one of them will come out less than satisfied.

Working with an insurance agency with years of experience and a proven track record of providing insurance coverage for farmers and agricultural businesses means getting exactly what you need and doing business with someone who as they say, speaks your language.

  1. Not reporting important information to your agent in a timely manner.

Unlike many other types of insurance, crop and agricultural insurance is not static. Things change, and they usually change quickly and often. This makes reporting important information and changes as it relates to your crops and livestock essential.

Your insurance agent must know information such as when you plant your crops, what crops are being planted, when you harvest a crop, if you buy or sell land for farming use, along with anything else that may cause your policy to need immediate adjustment.

Not following up with your agent with accurate and timely information can mean future problems if there is a need for you to file a business related claim.

  1. Not harvesting crops in the method outlined in the policy.

It’s important to use the harvesting methods outlined in your farm insurance policy exclusively to guarantee the viability of your coverage. Reaping crops with alternative methods can end up with a claim being denied if you eventually need to file one.

This issue boils down to the insurance agent not being able to properly assess and appraise the harvested crop, making your insurance coverage inapplicable and leaving you to pay significant out-of-pocket costs for any problems that result.


If you own a farm and want to consult with an insurance agency that understands your lifestyle and your needs, call Ihry Insurance today and speak with one of our experienced agricultural insurance agents to find out your options and get a free quote.

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