It’s going to rain. There’s no doubt about that. The question is; will you have enough coverage when the storm blows in? Farm Umbrella coverage, just like other umbrella policies, is designed to provide additional liability coverage on top of your regular policy.
A Farm Umbrella is a “buffer” between a lawsuit and your livelihood.
It isn’t difficult to imagine scenarios where claims might exceed the limits of your regular policy. For example, if a child is injured on your equipment, the costs could skyrocket. If an escaped farm animal wanders to the road and causes a multiple vehicle pileup, liability would be extensive. If a combine malfunctions and causes injuries, your regular policy will cover liability up to the limits set therein, but damage, injuries, and potential judgments against you are likely to far exceed those.
A Farm Umbrella Policy helps protect personal assets and future earnings. It offers coverage where the original policy ends and offers additional coverage for legal fees and costs associated with a lawsuit.
Do I really need a Farm Umbrella?
If you fit into one of the following categories, a Farm Umbrella Policy is a smart move.
- Do you have a high net worth? If your net worth (Debts subtracted from Assets) equals more than a million dollars, you are vulnerable to a sizable liability judgment that could cut into your overall net worth. Even if you seem to have assets or there is a perception of wealth, you are at greater risk for lawsuits. Also, if you do have a judgment brought against you, you don’t want to sell property or machinery in order to avoid bankruptcy (how would you farm without your combine?).
- Do you have above-average risk factors? If you use heavy equipment or drive long distances or (let’s be real) do any number of things that are a part of a farmer’s life, you have a higher exposure to liability.
- Do you have an investment in your farm? Historically high land and equipment values not only paint a target on farmers in a lawsuit-happy society, but also justify the need for higher umbrella limits. When there is more at stake, purchasing extra coverage is a no-brainer.
The good news is that the cost of a Farm Umbrella is significantly lower than most people expect. Give us a call and one of our farm specialists would be happy to walk with you through the options. We’ll sit down with you to discuss the limits on your current policies and then determine the appropriate additional coverage for your buffer. Then you can have confidence that when the clouds roll in, you’re ready for whatever storm is coming your way.