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Farmers might consider updating liability coverage
University of Missouri Extension says farmers should make sure their liability insurance is enough to cover rising farm values. Agriculture business specialist, Whitney Wiegel says that increasing asset values require that farmers take a good look at whether they have sufficient coverage.
“Their liability coverage may have amounted to a significant proportion of their total farm asset value. With the increase with the asset value, the ratio of their liability coverage to their total assets may now be much less than it had formally been,” explained Wiegel. “If their risk tolerance has not changed over that same time, they should increase their liability coverage.”
Weigel tells Brownfield Ag News that it is especially important for farmers to be aware of liability coverage because of the constantly changing farm asset values and the risks associated with farming.
“Farming is inherently risky. There are chemicals on the farm, there’s animals. There’s employees. There’s large machinery. Any of these has the potential to cause damage to other people or property that could potentially result in a liability claim,” said Wiegel.
Wiegel says it is important for farmers to keep their insurance agents aware of what is happening on the farm and suggests that farmers take a look at the farm’s coverage at least once a year.
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