Farm Liability insurance

Dan-IA · Dec 27, 2009

Hey guys
Dad just informed me that since I'm taking over its about time I get my own liability insurance. What do you recommend? What limits? Premiums? carriers? add-ons? exclusions? I'm in iowa and I don't raise livestock and we do have hunters but I've never seen a 4-wheeler here but my own.
So far my insurance policies have all been "if God wants it to stay it'll stay." Only insurance I've carried is car insurance and thats because the ticket costs more than the policy.

fixerupper · Dec 27, 2009

Most farmers have either 1 million or 2 mil. coverage, but it's kind of irrelevant because however much you're insured for is how much they'll go for in a lawsuit. My neighbor was sued and they went for all 2 mil of his coverage PLUS all of his machinery and property. They won and he no longer farms. Still makes me angry. Jim

Formerly PaMike · Dec 27, 2009

My farm insurance is dirt cheap. About $200 a year. Dont remember all the numbers but I have a couple hundred K in liability and I have about 20K in insurance on equipment. My company wants tractors,combines,cotten pickers etc to be stated on the policy, then other equipment I can lump into one big pile. Since we have 2 barns I figure I couldnt lose all my equipment in a fire so I only insure about 1/2 the value of the equipment(excluding tractors,combines, etc). My agent also said that the farm insurance will cover all sorts of other things such as rented equipment damage or loss due to theft. I think my policy is well worth the money...

Anonymous-0 · Dec 27, 2009

Your ability to pay or the amount of insurance you have has no bearing whatsoever in a lawsuit.

The stories you read about where someone says they are suing Joe Blow for 20 million dollars are for show only. The award in a lawsuit, if any, is determined by the judge or jury, not by how much coverage you have.

Your local agent will be able to suggest the proper amount of liabilty insurance you should carry.

Anonymous-0 · Dec 27, 2009

I used to have liability with a mutual out of Albion. Now I have house, vehicles, and farm all bundled with Farm Bureau at a better total rate.

Gerald J.

Don-Wi · Dec 27, 2009

If you're taking over, see if you can get your name on his old policy if he had one. I would think that if it's a business and you treat it as one, you shouldn;t have any problems transferring the policies.

Donovan from Wisconsin

agpilot · Dec 27, 2009

Hi Well: Sorry but there are always exceptions. I had a 60+ years old friend who was a member of a jury in which a young man had a finger cut off operating a 40 year old punch press. My friend was happy that he and the others stated that the company who built the press 40 years ago had to pay (because it was shown that nobody else had much money at all). The jury didn't care who was "wrong" as long as some one payed the young man who lost his finger. Emotions won out over logic. Put this under "anything can happen" ag

Anonymous-0 · Dec 27, 2009

Your anecdote is unrelated to my point.

Anonymous-0 · Dec 27, 2009

For 1240 acres in ND I pay $278 a year

Coverage

Liability to public $1,000,000
Medical payments to public, each $10,000
Liability to farm employees $1,000,000
Medical payments to farm employees,
each $10,000
Annual Aggreate $2,000,000
Damage to property of others $250
(this makes me think the most likely law suite agaist me will be damage to property of others)

I also have a $2,000,000 umbrilla liability policy on my homeowners insurence, it costs $138 a year.

I am not saying those are the appropriate numbers and I have no idea if any of this insurence is protecting me at all, and I hope I never find out. However that is what they sold me

Lee in Iowa · Dec 27, 2009

Whenever I have checked the county mutuals are the cheapest in Iowa. If you don't like the one in your county usally all the surrounding countys can write in your county.

Mike (WA) · Dec 28, 2009

The rule of thumb is to make your insurance policy more attractive than you are. If your net worth is a million, carry 3 million in liability. Chances are, plaintiff will settle for the 3 million, rather than the extra time and expense of going after the additional million. And believe me, the insurance company lawyers (who will be defending you) will be cheerleading the settlement.

If you start getting into the high net worth categories, best to incorporate the farming operation to limit personal liability- You should own the real estate personally, and lease it to the farming corporation, but have the farming corporation own the cattle and machinery. And then have the corporation carry good liability insurance.

Farm Liability insurance

Dan-IA

Member

fixerupper

Well-known Member

Formerly PaMike

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Anonymous-0

Well-known Member

Anonymous-0

Well-known Member

Don-Wi

Well-known Member

agpilot

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Anonymous-0

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Anonymous-0

Well-known Member

Lee in Iowa

Member

Mike (WA)

Well-known Member

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