11 Tips to Prepare For Your Farm and Ranch Annual Insurance Review

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It’s important for your insurance coverage to be as up-to-date as possible to ensure you have the types of coverage you need, as well as sufficient limits to protect yourself and your investments. Annual reviews should be a standard practice, with more frequent reviews if there are changes or updates to your property or operations that would require them. When it comes to reviewing your farm and ranch insurance, an annual review is a good time to review past changes and think about future changes to your ag operation, and make sure you have the right coverage for it. Here are some tips to prepare for your farm and ranch annual insurance review:

1. Consider Life Changes

Although it may not be top-of-mind when you’re thinking about your farm insurance, changes in your personal life can have effects on insurance. Marriages, divorces, births, family members moving out, family members moving in, and more could all affect who needs to be considered, included, and listed on your policies.

These are all changes that mean you need to review your homeowners insurance, and the same is true for insurance for agricultural operations. Even personal purchases of high-value items are life changes that should be included in your insurance review to make sure your investments and assets are taken into account and properly protected.

2. Think About Ownership

As part of preparing for your annual insurance review, it’s also a good idea to think about the ownership of the farm property and operations. Consider the following:

• What type of proprietorship is the ag operation?
• Who is the current owner?
• Are there multiple owners?
• Has the ownership changed recently?
• Are there new key players to consider?
• Is there a succession plan in place?

Depending on the situation, you may have other business succession planning and insurance needs to consider. When it comes to estate planning, it’s also important to consider insurance implications for the ag operation.

Businesses can end up underinsured, especially during generational ownership transitions. Insufficient coverage, gaps in coverage, loss, and more can all be consequences of being underinsured during an ownership transfer. Regularly reviewing your farm and ranch insurance and taking future estate planning into account can help reduce this risk.

3. Create an Inventory of Assets

Equipment, tools, machinery, buildings, vehicles, supplies, etc. are all assets that should be accounted for with your insurance coverage. One of the most helpful tips to prepare for your farm and ranch annual insurance review is to take inventory of your current assets and make a note of any new additions or changes.

It’s also not a bad idea to take pictures to create a photo inventory of these assets to keep with other relevant records and documentation. If you have acquired new equipment or other big-ticket items, make sure you include those items.

Also, take note of any equipment that you have sold or no longer have. Just as you want to make sure your new equipment is adequately covered, you also want to make sure you aren’t carrying coverage you no longer need for items you no longer possess.

4. Account For Changes in Livestock or Crops

Taking inventory around your farm isn’t just for physical property; it’s also for your livestock and crops. If your acreage planted or the types of crops you grow have changed, you will need to talk to your insurance agent about it. If you have cattle and your cattle count has changed since last year, you will want to talk to your insurance agent about it during your annual review.

If you have added new types of livestock to your farm, you may need to extend coverage to include them or add coverage, like livestock mortality insurance. If there are any specific high-value animals, they might need special coverage. Also, consider any plans you have in the upcoming year regarding changes to your livestock, as there may be insurance considerations associated with them.

Additionally, check your crop insurance and livestock insurance options to make sure you have coverage for all aspects of your operation. Also, check for insurance coverage that offers income protection, like loss of business income and extra expense coverage. Your insurance agent will be able to go over any insurance considerations you should be aware of regarding your current coverage, as well as any new coverage options you should consider based on changes or upcoming plans.

5. Evaluate Outbuildings

In addition to any changes to your primary residence on the property, also evaluate all outbuildings, including barns, sheds, storage buildings, etc. If any additions, renovations, or updates have been made to existing buildings, you will want to make sure those are taken into account.

Any new outbuildings should also make the list. Additionally, if the purpose of buildings has changed or you have changed the way you’re storing feed or harvested crops, you will want to make note of that as well. Depending on the nature of the changes, you may need to adjust coverage to include them on your policy.

Another consideration is that some updates could lower your risk and contribute to lower premiums. Property improvements, infrastructure upgrades, updated safety and security systems, various ways to protect livestock, and more can reduce risk.

In addition to protecting your investment, updates like these indicate responsible care and maintenance on your part as an insured while also reducing the risk of costly losses. Lower risk and other favorable factors could result in rewards that contribute to lower premiums relative to what the risk assessment might have been without those safety measures in place.

6. Take Note of Any Operational Changes

Another one of the tips to prepare for your farm and ranch annual insurance review is to take note of any operational changes your farm has gone through over the past year, as well as any you are planning to make in the coming year.

If you are adding new operations or business ventures, like moving into agritainment or agritourism, you will want to make sure your insurance agent is aware of those changes. Additional business operations, being open to the public, and more can all be reasons why you need additional liability coverage for your ag operation.

Whenever you invite the public onto your property, there are risks associated with that. Implementing safety measures, maintaining your property, and having the right types of insurance are ways to lower your risk and protect your agritainment investment. Your insurance agent will be able to walk you through what that would look like for your specific plans.

7. Consider Shifts in Employees or Staff

It’s easy to get caught up in property, equipment, livestock, and crops when it comes to farm and ranch insurance. However, it’s also important to consider the people working for you, too. Take some time to think over the past year.

• Have there been changes to your ag operation’s employee profile?
• Have you added or reduced staff?
• Have seasonal laborers or temporary employees shifted?

In addition to workers’ compensation on your farm, there are likely other insurance considerations that need to be addressed, or at least reviewed.

8. Take Regulatory Changes Into Account

Laws and regulations change over time. Environmental and safety regulations can, and often, impact agricultural operations. If new regulations have come into effect or will be coming into effect, make sure you are taking these regulatory changes into account.

Not only can these potentially affect your insurance needs, but there may also be compliance-related coverage or availability that is affected. You will want to make sure you talk through these scenarios with your insurance agent.

9. Think Through Some “What-If” Scenarios

Insurance is a way to provide protection in case of a loss. It’s something you wish you had if you don’t have it when you need it. Often, it’s something you have that you hope you don’t have to use, and that you are glad you have if a loss does occur.

When preparing for your farm and annual insurance review, it can be helpful to consider some relevant “what-if” scenarios.

• If “x” occurred, what would happen next?
• How would your current insurance policy respond?
• Would that response be sufficient in the event of loss?

You don’t want to stress yourself out or go down an endless spiral of what could potentially happen, but working through a few scenarios relevant to your operations can assure you that you are covered for them. Or, it will at least generate some specific questions to bring up to your insurance agent about what makes sense for your ag operation.

10. Prepare Questions For Your Insurance Agent

Gathering information, financial records, and documentation is important and can help you prepare for your farm and ranch annual insurance review, but you don’t have to stop there. To get the most out of that conversation and review, take some time to review your current insurance policy declarations page and prepare questions for your insurance agent.

You will likely have some questions come up naturally as you are going through your property and operations. Write them down in a notebook, record a voice memo, take a note on your phone; whatever works for you, just have a way to record and gather those questions. Asking the right questions during an annual insurance review can help make sure you’re not underinsured, overpaying, or missing essential protections.

Your insurance agent will have their own questions for you along these lines, but coming into that conversation with some of your own ensures you get the answers you want and need.

Questions to Ask Your Agent During Your Annual Farm Insurance Review

Some potential questions to ask during an annual review can include:

• Is my farm business entity correctly listed on the policy?
• What’s my deductible?
• What is covered/not covered on the current policy?
• Are the current coverage limits sufficient?
• Are there any coverage gaps or potential emerging coverage gaps?
• Are there current endorsements I no longer need?
• Are there endorsements I need that I do not currently have?
• Do I have enough coverage for my home, barns, and other structures?
• Is all of my equipment covered?
• Is my crop insurance still right for what I grow now?
• Does my livestock have sufficient coverage?
• Do I have enough liability coverage?
• Do I have income protection against market volatility or loss?
• How would my current policy respond if “x” occurred?
• Am I eligible for available discounts or savings on the premium?
• Does making seasonal adjustments make sense for my farm?
• Have there been any changes in farm insurance regulations I need to know?
• Are there changes in available farm insurance coverage options that apply to me?
• What are things you see other farms missing that I might want to consider?

11. Schedule the Review Early

Another tip to prepare for your farm and ranch annual insurance review is to schedule it early. Waiting until right before renewal can make the process more stressful for you, and it can potentially limit your options or even leave you with gaps in your coverage while you work to update or add coverage to your policy.

By scheduling your review a month or two, or more, in advance, you and your insurance agent have plenty of time to go over everything, obtain and compare insurance quotes for any adjustments you may need, and choose the best options for your situation and operation.

Get the Farm and Ranch Insurance You Need With Ruhl Insurance, a Division of Horst Insurance

Different changes and updates to your farm throughout the year could create a need to review your farm insurance policy more often. Regardless, an annual review with your insurance agent is a good idea to make sure your current policy and coverage are sufficient for your farm and operations. These tips can help you prepare for your farm and ranch annual insurance review and help you get the most benefit from it.

A good insurance agent will be a valuable resource during this process. Not only will they help reduce your stress and make the whole process easier, but they will also provide personalized advice and resources that are tailored to your specific needs and situation. These are some of the benefits that come with working with an independent insurance agent.

If it’s time to review your farm and ranch insurance policy, or you have questions about your coverage in the interim, contact Ruhl Insurance, a Division of Horst Insurance, at 717-665-2283 or 800-537-6880. We can help you review coverage options and provide the information you need to protect your ag operation.

Disclaimer: Information and claims presented in this content are meant for informative, illustrative purposes and should not be considered legally binding.