Homeowners Insurance vs. Farm Insurance

a large red combine is in the middle of a wheat field
Homeowners Insurance vs. Farm Insurance

Most people think that there are firm distinctions between a home and a farm. But, in reality, it’s not always clear cut, especially for small or newly established farms. How do you know when it’s time to establish a farm insurance policy instead of a home insurance policy? Staples & Associates can guide you on the difference between homeowners and farm insurance. 

Qualifications for Farm Insurance

Most people are familiar with when home insurance is required (especially when you have a mortgage) and what it covers, such as structures, contents, loss-of-use, and liability. While many farmers have home, property, or business insurance, Staples & Associates can offer a menu of options for farms of any size facing a variety of risk exposures. 

Farm insurance is beneficial when faced with risks such as direct-to-consumer marketing. While cutting out processors and wholesalers can benefit both the farmer and the consumer, the risk of foodborne illness and recalls falls to the farmer. Learn more about the types of policies to consider for your farming operation. 

Farm Insurance Policy Options

  • General farm liability insurance policies can cover bodily injury or damage occurring on the property from farm operations, accidents affecting farmers, employees, guests, and customers, and sometimes raw, unprocessed produce. 
  • If you process or adapt your farm products from a raw state, it may be best to consider adding a commercial business liability policy. 
  • Product liability policies protect against consumer claims of injury from a defective item. General farm liability policies do not cover contaminated fresh produce, as the consumption generally happens off site of the farm. Product liability coverage usually requires that the farmer submit a detailed description of products and operations to the insurance company.  
  • Product recall insurance covers the removal and destruction of contaminated products as well as transportation costs ensued, but does not include third-party costs or losses. 
  • Accidental or product contamination policies can cover indirect costs related to recalls and unintentional distribution of unsafe products. 
  • Malicious tampering insurance protects against losses from criminal acts. 

It’s best to work with an agent from Staples & Associates to assess your potential liabilities and develop a risk management plan. Contact us today for a free consultation


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