COVERAGE CONCERNS

Avoid common insurance mistakes for rural and hobby farm businesses.

- CYNTHIA MCFARLAND

For many of us, shopping for insurance ranks right up there with going to the dentist. It can be intimidating and confusing, so many people either ignore it or choose the easiest option. Unfortunately, accidents happen.

Having the right insurance coverage can protect you from risk in today’s litigious climate.

In the current economy, many small farm owners are looking at different ways to bring in extra income. Maybe you’re considering boarding a couple horses in that empty pasture, offering U-pick during the season, selling produce or farm products, leasing your barn for weddings and events or renting out RV space on your farm.

Tapping into a new income stream is exciting and may provide economic relief, but it can also have unexpected risk exposure. To learn common insurance mistakes and how to avoid them, we turned to Chris Moore, president of the farm and ranch division of EPIC Insurance Brokers & Consultants, which has offices across the country.

Common mistakes include: • not having coverage for your specific risks • not informing your insurance agent about what you’re doing with your property/business venture

• not updating coverage when risk exposure changes

FARM & RANCH COVERAGE

When starting a small or hobby farm business, many people rely on their personal homeowner’s insurance.

“While that may cover your home and personal property, it could leave you exposed and it doesn’t properly address the farming and business activities taking place on your premises or away from it,” Moore says.

The right choice is a Farm and Ranch policy, which covers the residence and contents, structures on the property as well as liability coverage. A farm policy can be tailored to your specific operation, whether you’re raising a few goats on 5 acres or growing crops on hundreds of acres.