Farmers run the risk of natural disasters. Insurance coverage is necessary.
Overview of Farm Policies
The quality of coverage and insurer pay-outs vary by company. Some insurance policies, or parts of a policy, can be governed by federal law, while others are subject to state law.
Most farm insurance policies are complex with multiple forms and multiple pages. While difficult to read, these policies are important as they set what an insurer must pay.
Property and Operations Coverage
Property insurance is not the same thing as operations insurance. If a tornado hits, a farmer needs coverage of the property, but also needs coverage for lost income and lost business operations. A good insurance agent or broker will understand that and help guide farmers to the right coverage – both actual coverage and the amounts of insurance.
Insurance policies are written to include a procedure for filing and pursuing a claim. Some language that covers the claims process comes from the federal or state government. That language is important and should not deviate from what the government requires. When the language does deviate there is legal authority to “reform” the language to match state law.
Beckmann Law Firm advocates for farmers: 1. We explain coverage to an insurance company under its policy and state law. 2. We determine the amount of loss an insurance company should pay.