The Importance of a Farm Umbrella Policy

With an Umbrella Policy, You Can Better Safeguard Your Assets and Livelihood

Farming is a profession filled with risks, and farmers often live on the same property where they work, creating a unique situation where their home and business are intertwined. This close connection exposes farmers to liability from farming activities as well as those from the home. 

Consider the following examples that illustrate the diverse range of liabilities that farmers can face that could result in lawsuits quickly turning into multi-million dollar claims.

• Livestock from the farm escape and cause a multi-vehicle traffic accident, resulting in property damage and injuries. The farmer is found liable for the damages.
• A visitor to the farm trips and falls, sustaining serious injuries. They file a lawsuit against the farmer for medical expenses and other damages, such as lost wages while they are recovering.
• A large farm vehicle with a heavy load is unable to stop quickly and collides with another vehicle, which causes injuries that require extended care for multiple victims. 

When considering the potential magnitude of these types of accidents, primary liability coverage may not be enough. If a claim surpasses the limits of your existing policies, you could be left paying the remaining amount, potentially jeopardizing your current assets and future earnings.

This is where umbrella insurance can be instrumental in protecting your assets. It provides an additional layer of liability coverage that kicks in once the limits of your primary policies, such as farm or auto insurance, reach their limits. 

Moreover, umbrella insurance is often relatively affordable compared to the amount of coverage it provides, making it a cost-effective way to increase your overall liability protection. Speaking with an independent insurance agent can help you assess your specific risks and determine if umbrella coverage is right for you.

Having the peace of mind that comes with knowing you have additional protection can be invaluable, especially in a profession like farming where possibility of accidents is higher than in a typical home. With an umbrella policy, you can better safeguard your assets and livelihood against the unpredictable nature of farming risks.