A blanket insurance policy will provide you with a single coverage limit. As long as everything under the blanket coverage belongs to you, your policy will cover it. Blanket coverage will protect you if you are a homeowner.
In the event that you need to file a claim in the future, you won’t have to deal with bureaucratic red tape in order to get the compensation that you need. Moreover, blanket insurance tends to cost only 10% more than conventional homeowners insurance.
Blanket insurance is also versatile, as businesses, homeowners, campgrounds, apartment residents, and even industrial manufacturing companies can benefit. Blanket insurance is a single insurance limit that covers more than one type of property and location in most cases.
In this article, our focus will be on whether or not you need blanket coverage for your farm.
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Different Types of Farm Insurance
Grain and cattle insurance will protect you from losses of cattle, grain crops and machinery. If you are a cattle or grain farmer, then you need to use farm equipment and machinery on a daily basis. As such, the risk of repairs and breakdowns will increase over time, having this type of insurance will ensure you can replace old or broken equipment, and get financial compensation for unexpected events or criminal activity that can damage your crops or cattle.
Vegetable and horse insurance takes into account the various risks involved with equine and crop maintenance and protects your assets. If your horse unexpectedly dies, needs treatment, or if their shelters are damaged, you will be covered. If your fruit and vegetables are destroyed, or their equipment is, you can claim those losses and receive financial compensation.
Hog farm insurance takes into consideration your need to store and take care of all your pigs, as well as their manure. It also takes into account your weaning and finishing barn, and all of your feeding apparatuses. If you want to protect your hog farm from all possible perils, then you need to buy livestock insurance, machinery insurance, and general liability insurance.
Dairy farm insurance is a must if you own a dairy farm. Dairy enhanced insurance is also strongly recommended if you want to completely protect your dairy farm from any problems that you may face in the future.
If you have neighbours that you are concerned about, then you may want to consider purchasing limited pollution liability insurance too.
Generally, farm insurance is a type of insurance that is intended to protect farmers, their livestock, and their machinery from harm. Your farm will be guarded against environmental damages and human mischief. If you operate a sell products at tradeshows, farmers’ markets and other events, purchasing farmer’s market liability will protect you from lawsuits in the future.
Livestock insurance and general liability insurance may be required in order to protect all of your hard-earned assets.
Additionally, all types of agricultural operations will be adequately protected when you purchase the right policy. You will be protected if you own a poultry farm, crop farm, dairy farm, or another type of farming enterprise, regardless of its size or scope.
Differences Between Blanket Coverage and Scheduled Coverage
Scheduled coverage involves more preparedness on your part. An itemized list of all of the products that you wish to insure will need to be given to your provider. You will also need to prove the value of each item by providing your insurer with the proper documentation.
As such, each of your items will be insured separately. As for blanket coverage, it will provide you with a certain amount of coverage for your entire farm. The limit is determined by the type and size of the farm you own and operate. Moreover, an additional sub-limit will be given per each item that you own.
In terms of what type of insurance you need for your farm, you must consider the type and size. From hobby farms to monolithic industrial-sized enterprises, you need to think about the type and value of your acreage, as well as the items that you need to protect.
We would recommend a farm insurance package that covers liability, vehicles, farm buildings, equipment, business interruption, livestock, machinery, and produce at a bare minimum. Given the various types of farm insurance that are available, you need to determine the size and type of farm that you own, as well as what your long-term farming goals are.
Do farmers need blanket coverage?
If you own more than one building, then you may want to insure all of your buildings under a single large limit. Blanket coverage for all your farming equipment is strongly recommended.
As a result, you won’t have to worry about not having sufficient insurance on any given item that you own. Farmers often require blanket insurance because they own a large variety of different crops, animals, equipment and tools.
A conventional homeowners policy will not cover farm equipment. In order for your farming equipment and tools to be covered, you need to schedule/itemize them. You can opt for a blanket limit if you wish, or choose a per-item coverage limit instead.
Blanket coverage makes sound financial sense if your contents and equipment are spread out over a multitude of locations, which is often the case with farms.
In regards to price, blanket insurance tends to cost more than conventional insurance coverage that lists each item or product individually, where the exact cost will be determined by which items you wish to insure. However, generally, you should expect to pay about 10% more for blanket insurance coverage than you would if you choose to insure everything in a separate manner, as you would with scheduled insurance coverage.
Taking the First Step
Running a farm is not an easy endeavour. It takes a lot of effort, and a little bit of luck, in order to run a farm successfully for a prolonged period of time.
If you do not have blanket insurance, then any of your equipment or properties that are not insured at full value may cause you fiduciary distress down the road. That is, you will not be eligible to receive their full monetary value in the event of damage or theft.
Working with an independent insurance agent in your area may help you make an informed decision that will protect your hard-earned investment for decades to come. They will help you determine if blanket insurance is the right choice for your particular enterprise.
Jessica Coates is a blogger in Toronto. She graduated with honors from the University of British Columbia with a dual degree in Business Administration and Creative Writing. Jessica Coates is a community manager for small businesses across Canada. When not working, she leisurely studies economics, history, law and business solutions.