Understanding Crop Insurance vs. Farm Insurance: Which Do You Need?

Owning and operating a farm requires careful planning and robust risk management. Regardless of your experience and diligence in running your farm, you might eventually face situations where the assistance of insurance makes all the difference. However, insuring your farm can be complicated, as securing appropriate policies may require careful consideration. At W E Walker-Lakenan Insurance, we can guide you through this process, including understanding farm and crop insurance coverages.

What Is Farm Insurance?

Farm insurance is a general term that can be thought of as a specialized form of business insurance tailored toward the needs of your unique operations. Farm insurance may require a combination of several types of policies, each capable of addressing various risks and exposures relevant to the agricultural industry. Specifically, a sufficient farm insurance package may often include the following:

• Farm property insurance

• General liability insurance

• Workers’ compensation insurance

• Livestock insurance

• Crop insurance

• Business interruption insurance

• Commercial auto insurance

What Is Crop Insurance?

Crop insurance is one of the most integral and common components of a farm insurance portfolio. As its name suggests, this type of policy focuses on financially protecting your farm’s harvest. Given your dependence on ample harvests and subsequent revenue, lacking adequate coverage could imperil your farm’s financial security and ongoing viability. Specifically, crop insurance may help account for the following incidents:

• Fires

• Floods

• Hail

• Frost

• Windstorms

• Disease

• Drought

• Insect damage

Additionally, some crop insurance policies may also provide coverage for low-yield harvests and market fluctuations. As such, if your harvest isn’t as bountiful as you expected or the going price for your crops is unusually low, your insurance may help you recoup losses.

We’re Here to Help

At W E Walker-Lakenan Insurance in Cape Girardeau, Missouri, our knowledgeable team is committed to helping local farmers understand and secure appropriate coverage. Contact us today to discuss your options or compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.