Farm Insurance in Ontario

Farm outbuildings and barns can be insured for Replacement Cost or Actual Cash Value and depending on their condition, coverage forms vary. With outbuildings and barns, deciding on how much insurance you require is important. This is best determined by understanding what it is you are looking to put back in the event of a total loss claim. Would you replace the structure as it is, or would you replace it with something different, or potentially not replace it at all? 

It is best to discuss this with your broker before deciding the type of coverage and amount of coverage you should carry. 

Equipment Breakdown coverage is optional; however, it can be crucial coverage for many commercial farmers. Farm equipment breakdown can save a farmer time and money for breakdown or electronic circuitry impairment of boilers, pressure vessels, mechanical equipment, electrical distribution and more. It pays for losses to the actual equipment that has been damaged as well as damage to other property directly damaged by the breakdown or electronic circuitry impairment of the equipment. With mechanical equipment such as robotic milkers, fans, blowers, refrigeration equipment and many others. Equipment breakdown coverage should be added to protect you in the event of a sudden and accidental failure of equipment resulting in physical damage to the equipment, and other property that may be directly damaged due to the breakdown of the equipment.

Business interruption is important for most businesses, and this includes farming.

This coverage insures against Loss of Earnings as described in your policy for loss of income sustained during necessary interruption of your farming operation directly caused from a covered peril insured against damaging or destroying the described building or buildings as indicated in your policy, less operating expenses which do not necessarily continue.

Livestock coverage can be purchased for livestock classes including horses, cattle, poultry, swine, sheep, and goats. This coverage insures your farm livestock as described and up to the limit on your policy for death or destruction resulting from perils such as fire or lightning, windstorm or hail, attack by wild animals or dogs, collapse of buildings, entrapment, and many more. Please check your policy wordings to confirm what perils are covered in your policy.

You can purchase coverage for your farm produce. However, it needs to be listed and described under your policy. It is important to insure your produce to protect your business in the event of an unforeseen event. Common causes of losses and exposure to your produce are fire or lightning, theft, windstorm or hail, collapse of buildings, flood, and many more. Please check your policy wordings to confirm what perils are covered in your policy.

Today’s farmers use a wide variety of technology and equipment to help them get the job done. From hi-tech combines to tractors, along with a multitude of attachments, such as balers, sprayers, mowers, and the list goes on. Farmers are heavily invested in their equipment, and it is essential to make sure that equipment is protected properly. Machinery and equipment coverage will make sure your assets are protected from physical damage. The perils covered and excluded will be listed in your policy. It is important to review your policy with your broker if you are unsure about the coverage for your equipment. It is also imperative to review the values and inventory of your machinery regularly and make sure you are notifying your broker of additions and deletions of machinery and equipment throughout the policy term.

Today’s farmers use a wide variety of technology and equipment to help them get the job done. From hi-tech combines to tractors, along with a multitude of attachments, such as balers, sprayers, mowers, and the list goes on. Therefore, it is important to have Loss of Use coverage for your machinery. This coverage will pay for the necessary extra expenses incurred for the rental of substitute farm machinery and equipment to continue normal farming operations which have been disrupted because of loss or damage (due to an insured peril) to farm machinery and equipment specifically listed on your policy. Loss of Use coverage is essential in making sure you can continue your operations without interruption after you have suffered a loss.

Farm Liability differs from personal liability on a standard home policy. If you are conducting farming operations on your property a standard homeowner’s policy will not pick up the liability of those farming operations. It is important to disclose all business and farming operations on your property and to ensure your broker and insurance company understand the full scope of the operations.  Also, any additional lands or buildings you may rent or lease for farming operations must be shown on your policy declaration page to ensure liability is extended to these properties.  Farm liability can protect your livelihood in the event of a lawsuit.  Liability exposures with regards to farming operations can be significant and it is important to have the right coverage so that your policy can respond to an unforeseen event.