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Why do I need a Farm Umbrella Policy?

You may say, “We have insurance for our farm, trucks and cars. That should be enough. Why do we need a farm umbrella policy?”

In todayʼs society, lawsuits are occurring with alarming frequency. Moreover, the monetary awards can be staggering and seem to be skyrocketing by the minute.  Here are a few examples of accidents that have happened on a farm or ranch and the monetary consequences  –

Neighbor child injured while playing on irrigation equipment = $1.4 million

Horse escaped from farm property and collided with a vehicle on a public road = $850,000

A person hauling grain was seriously injured by an unprotected drive shaft on an auger = $2.1 million

Your current insurance will protect you against a minor misfortune, but it may not protect you in the face of a catastrophic loss like the examples above. With inadequate insurance, those losses can impact future wages and retirement plans, and may even jeopardize your farm ownership.

Re-examining your liability policy limits is as critical as managing your farmʼs overall finances and will help ensure that you are protected against an unknown catastrophic liability loss.

You likely have liability coverage—auto, farm and ranch or watercraft liability, etc. In the event of an accident, these policies give you protection for bodily injury and/or property damage, but only up to your policy limit. You are responsible for anything beyond those limits, which could be several million dollars! The good news is a farm umbrella policy can help you mitigate this financial loss exposure.

With a farm umbrella policy, you are covered up to policy limits if the limits under your primary policy are depleted due to a large claim. The purchase of a farm umbrella policy will help protect your personal assets and farm as well as your future earnings.

Talk with an agent at American Trust Insurance today to help you decide what farm umbrella policy limit is right for you.