If you're thinking about heading away from city life and starting a new career as a farmer, you have a lot to learn. You need to adapt to rural life, of course, get used to early starts and long hours, and learn all the tricks of the trade. However, you will also need to look at everything from a solid financial perspective and make sure that your risks are contained wherever possible. It's important to get a good grip on insurance as it pertains to this particular industry, but what areas do you need to look at most?
Building and Contents
To begin with, consider buildings insurance. This will cover your dwelling and also all the individual buildings, barns, outhouses and structures. You will need to make a list of all the contents within each one of those buildings and make sure that they are covered from a theft and damage point of view.
Fire can be a particular hazard in a rural location as it may not be easy for responders to get to your facility in good time. When looking at fire protection insurance, make sure that you include all of your machinery and associated items and structures like fencing and gates, which can be costly to replace.
Loss of Stock
If you intend to raise cattle or sheep, ask your broker how best to protect them. In the event of that fire, a lot of your livestock may perish, and with them, your potential profit.
Loss of Earnings or Usage
On a farm, every day needs to be productive if you are to meet your targets and run your business at a profit. Sometimes, your success will rely on circumstances beyond your control, and you need to reduce your exposure as much as possible. For example, a significant item of machinery may break down at the worst time during harvest or at another critical juncture. Your commercial refrigerator may stop working, and it may take some time to get this fixed. In the meantime, you may lose a lot of your product to wastage and, once again, will need to come out of your own pocket.
Don't forget about sickness or personal accident insurance coverage too, and especially if you have key workers to think about.
The insurance risks can vary depending on the location of your new farm. For example, you may face additional risks if you are located close to the coastline and in an area that may often experience tropical storms. This is why you must talk with an experienced rural business insurance adviser, as they take everything into account and ensure that you get the correct coverage. Reach out to a rural insurance company to learn more.