A farm is a business; therefore some people would consider it "commercial." Others might consider anything "commercial" to be separate from farms as businesses. It's not a hot debate, but it is one that needs to be explored and understood if you are seeking commercial insurance for a farm. Differences between farm insurance and commercial insurance depends on the insurance company.
Commercial Insurance Covers LARGE Businesses
Commercial insurance typically covers large businesses. These companies employ dozens of people and perform hundreds of tasks a day. They may be industrial companies, retail companies, construction companies, and even manufacturing companies. This is what most people think of when they think of the word "commercial."
While this is certainly true, there are some instances where commercial insurance would, and does, cover farms. If the farms are massive dairy cow machines that have several hundred to a couple thousand head of cows producing milk all day long, that is undoubtedly a commercial operation. Most of their equipment and their milking barns are covered by commercial insurance.
Farm Insurance Cover Farms
Farm insurance is pretty straightforward. It covers farms. It covers almost all farms, regardless of what the farms produce and/or who they produce it for. It also covers all of the structures, machinery, land, the farmers' homes, and several other things the farmers need to do the work that they do. Does that mean that farm insurance covers the massive dairy farms or humongous chicken and egg farms too? It can, provided that these farms meet the requirements and restrictions set forth in the individual insurance companies' policies for farm insurance. Otherwise, they are covered by commercial insurance.
Buying Your Insurance
So, what kind of farm do you have? Is it a huge, one-thousand-head of cattle type of farm, or is it a hobby farm that produces milk and products just for personal use and occasional sale? You have to first define your farm before you can figure out what kind of insurance you need. You have to keep in mind that different insurance companies may view your farm as something different than how you define it, too. Then you can discuss with an insurance agent which type of insurance best covers your farm.
Of course, you could always buy a commercial policy and a farm policy. It may be overkill, but you would definitely have everything covered. Discuss the benefits of this approach with an insurance provider like Bennett Agency.Share