Farm Insurance Checklist: Important Steps when Checking and Updating Your Coverage in Canada
As a farmer in Canada, it’s a must that your farming operations are insured against the right risks. But what does that mean? The simple answer: farm insurance. By using farm insurance, you can make sure your business is secure, from covering your farm equipment and buildings to the handling of liability issues. The agricultural field and the insurance industry are always changing, so it’s important to periodically check and update your farm insurance policy. You’ll need to cope with the new rules and risks to be sure that your insurance covers all the necessary requirements. In this article, we’ll provide you with a complete farm insurance checklist so that you know about the steps involved in reviewing and updating your coverage.
Assess Your Farming Operations
The first stage of the process of checking your farm insurance policy is to thoroughly analyze your farming activities. And no, we’re not talking about the cowboy hat toss, horse races, or sheep herding contests. We mean to check on all your farm goods—machinery, buildings, etc.—that need to be covered. Be aware of any recent modifications or expansions to your business that might be the cause of your change of insurance needs.
Evaluate Your Current Insurance Policies
Look at your current insurance policies and find out what coverage you have. Be careful to look at the types of coverage they include, for example, farm liability, property damage, and personal property coverage are crucial ones to point out. Are your existing policies enough to prevent the risks and exposures that may arise?
Understand Your Insurance Company
Why not get to know your insurance company? Do a background check on their reputation, financial stability, and customer service track record. The knowledge of the insurance company you have will enable you to make wise decisions on renewals and claims.
Determine Your Insurance Coverage Needs
Now it’s time to change or update your insurance policy if there is a gap or a deficiency in your current insurance coverage. In addition to other factors, think about the replacement cost of your farm equipment and buildings, the value of your farm products, and the possible liabilities. Then ask yourself if you require more coverage or higher limits to adequately cover your farm operations.
Assess Risk Management Strategies
Make sure to assess your risk management measures to reduce the chances of losing your farm. This could be simple measures like establishing safety rules, securing the barns and farm machinery, and teaching your farm employees the proper way to handle equipment. Our Learning Centre is a great place to start! We have resources on topics such as equipment theft, livestock handling, and more.
Review Deductibles and Coverage Limits
Deductibles and coverage limits in your farm insurance policy should be carefully inspected. Check out if they fit with your risk profile and financial ability. Chat with your broker to see if you can change the deductibles and the coverage limits in case you need to get more or less coverage. This ensures you have the perfect protection for what you need without splurging on coverage you won’t need.
Inspect Farm Buildings and Machinery
Do your farm buildings and machinery a favour with a deep inspection to detect any of the problems to fix or safety issues you might have to solve. Taking care of maintenance problems right away helps you avoid accidents and property damage. Plus, it means you're less likely to need to deal with insurance claims down the road.
Consider Liability Coverage
Liability insurance is necessary for the prevention of accidents and injuries on your farm and the lawsuits and claims that might be brought against you. Examine your liability insurance policy to make sure it covers all the possible liabilities of your farm business. For example, accidents on farm machinery or from livestock.
Renewals and Updates
Be in a constant state of renewing your farm insurance policy on time and making the necessary changes as needed. Bookmark your renewal dates and the yearly policy review to see if the changes in your farming operations or insurance needs are adjusted. Frequent meetings with your insurance broker are the best way to make sure the coverage has you, well, covered.
Consult with Professionals
Think about getting the advice of insurance experts, for instance, insurance brokers, to deal with the complicated issues of farm insurance. They can give you useful ideas and suggestions that are directly related to your unique needs and situation. Another thing to consider is to talk to your lender to be sure that your insurance coverage is fulfilling the conditions stipulated in your loan agreements.
In an Eggshell
Farming operations are more secure with the help of full insurance coverage. Insurance is the best way to manage risks and make sure that your farm will be well off in the future. With this farm insurance checklist and regular updates to your coverage, you can protect your assets, reduce liabilities, and ensure your farm keeps running smoothly.
Always be aware of the happenings in the insurance industry and talk to the experts so that you can make a well-informed decision about your farm insurance policy. With the appropriate insurance, you can concentrate on the development of your farm business with the peace of mind that you are covered in the ever-changing agricultural map of Canada.
Our team at Sandbox Mutual Insurance offers farm insurance throughout Saskatchewan, Manitoba, and Alberta! We offer Property Protection for things like farm buildings, Equipment Protection for harvesting and non-harvesting farm equipment, and Production Protection, which protects your farm inputs and outputs. We also have convenient farm insurance boxes to take out the guesswork: the Farm Business Box, Farm Lifestyle Box, and Buzz Box. These handy boxes consider the insurance you will need depending on your type of farm, whether it’s a large-scale operation, hobby farm, or maybe you’re a beekeeper, and combine all the coverages into one package! Read more in detail about our FarmSecure line.
To review your current insurance policy or discuss new farm insurance with Sandbox, reach out to a Sandbox Mutual Insurance broker near you.