Livestock Insurance

On its own, commercial crop farming requires taking on a major and risky investment, however raising livestock increases the level of unpredictability and financial uncertainty even more. You can lose livestock easily and for a wide variety of reasons such as accidents, theft, weather events, and infections.

 

Having adequate livestock insurance is not only recommended, but is essential for farmers raising animals commercially to manage risk effectively. The coverage that livestock insurance provides keeps your investment safe and provides compensation for unexpected animal losses.

 

If a worst-case scenario were to occur, would your business be able to survive? Are you protected from financial ruin if a disaster caused you to lose the majority of your livestock? Do you want to find out more about the benefits of having livestock insurance? What follows is an overview of livestock insurance, how it can help you to minimize your agribusiness risk, as well as the coverage options available.

What is livestock insurance?

Livestock insurance offers coverage for farmers who raise animals commercially and for profit, which include, but are not limited to:

Cattle

Pigs

Sheep

Emu

Goats

Bison

Horses

Game Animals

Zoo Animals

Aquatic Animals

A farm animal insurance policy can be created to provide coverage in two main ways:

Comprehensive Coverage

Provides coverage for several types of animals and loss events, such as death, illness or injury.

Limited or Individual Coverage

Provides individual coverage for specific types of animals and loss events.

These policies can be further customized depending on the particulars of your farming business and your specific needs. In many cases, the coverage that the policy provides can also be extended to protect the structures and facilities used to contain the animals.

What types of livestock insurance are available?

There are three main coverage types available for livestock insurance, which includes individual, blanket and herd coverages.

Individual

Provides coverage for individual animals with a very specific compensation amount. The animals listed on the contract must be identifiable by branding, tagging or some other type of marker. This type of policy is best for livestock that have a high resale value.

Blanket

Offers coverage for the entire farming property, which includes the livestock, tools, equipment, vehicles and structures. This type of policy typically provides comprehensive protection and good value for money.

Herd

Provides coverage for a certain number of one type of animal such as a herd of 300 cattle or a group of 400 pigs. This type of livestock insurance is the most common option and is also the simplest to use.

The type of insurance you choose determines the amount of the premium for each animal, with blanket and herd policies being significantly lower per head than individual coverage options.

Common livestock insurance coverage options

The following is a list of livestock insurance coverage options that you can include in your policy on a broad or individual cause of loss basis:

Accidents

Provides compensation for animal losses due to accidental deaths by explosions, drowning, falling objects, electrocution, shooting, smoke, fire and other circumstances.

Weather Events

Provides compensation for losses due to weather related events such as tornados, floods, wind, hail or lightning.

Natural Disasters

Provides compensation for losses due to events such as sinkholes, earthquakes and volcanic eruptions.

Livestock Mortality Insurance

Provides a lump sum benefit upon the death of high-value animals on an individual or blanket basis.

Land Transit Coverage

Provides coverage for livestock during transportation by land and provides compensation for any losses that occur during the process such as while loading and unloading, or in a collision.

Ocean Marine Transit Coverage

Provides coverage and protection for animal loss during transportation internationally, by air or sea.

Poultry Insurance

Provides coverage specific to farmers who raise birds and offers protection for their unique needs such as securing egg-laying facilities, birds raised for meat processing, hatcheries and other poultry operations. The policy also provides compensation for income lost as a result of a covered event leading to changes in egg production.

Swine Insurance

Provides coverage for risks associated with raising hogs and that can lead to loss due to events such as fire, building collapse and breakdowns in containment facilities or infrastructure.

Equine Insurance

Provides coverage for horses and foals that offers protection from losses associated with the death or illness of a horse raised for personal enjoyment or for commercial purposes.

Cattle Insurance

Provides coverage for the specific needs of cattle farmers which includes compensation for the reduced value of bulls who cannot reproduce or cows that die during the calving process.

Carcass Removal

An optional benefit that provides coverage for the removal and disposal of dead animals from the premises if the cause of death is covered in the policy.

Additional livestock insurance coverage options include:

  • Compensation for loss due to interruptions in power supply, mechanical breakdowns or contaminated feed supply.
  • Coverage that pays any penalties for the loss of livestock specified in third party contracts.
  • Compensation for animals lost due to vandalism, theft and other acts of crime or civil unrest.
  • Coverage for livestock loss due to animal attacks.

Ihry knows livestock insurance

Raising livestock for profit is one of the most risky aspects of operating a farming business that requires significant capital and time investment. Your ability to keep your animals healthy and safe ultimately determines your return when the time comes to profit from your investment.

 

The fact is that a single livestock disease can wipe out a pasture full of cattle or other livestock in a matter of days, leaving your business vulnerable to catastrophic financial loss as a result. Having a well-written livestock insurance policy protects your farming business from the unimaginable and minimizes the risk of loss due to unforeseen negative circumstances.

 

If you want to explore your options with a trusted leader in the agricultural insurance industry, call Ihry Insurance today to speak with one of our helpful agents to get a free and fully customized livestock insurance quote.