Analyzing Farmers Insurance Claims to Get Sufficient Coverage

For over a century, insurance agencies have provided farmers with policies that protect against various types of farming risks. These risks involve operating heavy-duty equipment, unexpected climate conditions, and financial concerns related to cultivation. All it takes is one severe storm to wipe out a field of crops. However, securing the right farming insurance coverage can mitigate seasonal and long-term losses.

Choosing the Right Farmers Insurance

One of the most common farmers’ insurance claims involves crop damage resulting from natural disasters such as drought, fire, hail, flooding and strong winds. Farmers must also secure themselves against fluctuations in crop prices and yields. Ask your farmers’ insurance representative about federal subsidies for agricultural producers. It’s possible to get federal financial help if your farm grows eligible major crops for your area.

The two main types of crop insurance are yield-based coverage and crop revenue plans. A yield-based plan covers losses when crop yields are lower than forecasted, while revenue plans pay to ensure that the income from the farm meets a predetermined level. These plans are given different names with customized coverage, such as Corp Revenue Coverage (CRC), Income Protection (IP), Revenue Assurance (RA), and Group Revenue Insurance Policy (GRIP).

Another risk for farmers is if livestock animals become ill, die, or are less productive. A Dairy Revenue Protection (DRP) plan, for example, pays when quarterly revenue declines due to less milk production among dairy cows. Another type of add-on is Livestock Gross Margin (LGM), which pays for losses in gross margin and is calculated by subtracting feed costs from the market value of livestock.

Farmers can learn a wealth of information about agricultural risk management at the USDA’s website section on its Risk Management Agency. This section lists risk management strategies such as enterprise diversification so that a farmer isn’t dependent on a narrow range of products. Contracting that guarantees prices and other terms of exchange in advance can further protect farmers from price shocks.

Top Insurance Providers

Most farmers use a variety of risk management tools and strategies, including special coverage add-ons. Here are some of the top insurance agencies that provide various types of coverage for farmers:

Nationwide – offers insurance, investing, and retirements options. It’s been in business for over 90 years offering insurance protection to businesses, families, and farms.

Countryway – insures home farms and farm equipment. It also offers personal umbrella insurance to fill gaps from other types of coverage.

Dryden Mutual – works with independent agents to sell insurance products. Purchasing a policy requires going through one of the firm’s 300 agency locations.

Erie and Niagara Insurance Association (ENIA) – has served farmers in the Erie and Niagara region with insurance plans for over a century. The firm covers farm dwellings, farm liability, and various add-ons for farming processes.

Great American Insurance Group – consists of property and casualty insurance agents that serve various industries, including farming. The company has protected farmers and ranchers since it was formed in 1886.

Paying attention to farmers’ insurance claims can help farmers understand how different types of coverage affect their assets. Farmers must overcome a wide range of risks to run a successful operation, and it helps when customized coverage is in place. Visit our Payment & Claim Page for a complete list of providers for claim & payment. Contact us at Kneller Insurance Agency and let us know how we can help you with your insurance needs.

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