Farm Insurance Ontario

Farm Insurance Ontario

Farming isn't just a business; it's a way of life. It's challenging yet rewarding work. Unfortunately, it’s also awash with uncertainties – everything from the weather to fluctuating prices to fire risks to equipment failures to – well, you get the idea. Helping farmers manage their agricultural business risks and mitigate financial damage if losses occur is the purpose of farm insurance. 

To get proper farm insurance protection, your best bet is to contact a farm insurance expert to arrange a customized insurance solution that meets your farm's specific needs. Farm insurance specialists know every farm has unique protection needs. We prepare specialized farm insurance packages to protect your home, farm buildings, machinery, equipment, livestock, produce, farm liability and more.

Whether you farm in the Golden Horseshoe, Norfolk, Oxford, Brant, Niagara, or any areas between or beyond, our Morison Insurance farm experts can arrange an Ontario farm insurance policy that is right for you.

What Is Farm Insurance?

Farm insurance is an insurance product with specialized coverage for farm owners or individuals who are farming. It protects a farm's assets, including farm buildings, farm machinery and equipment, livestock, produce, liability and more.

Who Needs Farm Insurance?

You need farm insurance if you own a farm, have acreage that you rent to other farms, or have farm operations such as renting land from others and growing crops. 

A standard homeowner's insurance policy does not provide proper coverage for a farm operation. A farm insurance policy includes coverage for your home and personal liability, as well as your farm and farm liability needs. A farm insurance expert will help you determine the coverages needed for your commercial farming operation.

Why Do I Need Farm Insurance?

If you own a farm, having farm insurance is essential. Having the proper farm insurance coverage in place will give you peace of mind knowing your farm is properly protected in the event of a loss. If you didn't have farm insurance and experienced a loss, you could be left without the buildings or necessary equipment to operate your farm, you could be left to defend yourself against a lawsuit, or you could be left having to pay out-of-pocket expenses to get your farm back up and running. With the proper farm insurance policy, you could get back to operating as soon as possible after a loss to help minimize financial losses. It is also important to note that if you attend farmers markets to sell your farm products, the market may require proof of insurance.

What Does A Farm Insurance Policy Cover?

A farm insurance policy covers farm buildings, bunkhouses, farm machinery, tools, equipment, livestock, produce, home or primary residence including personal contents and detached private structures, personal liability, and farm liability. Because each farm situation is different, it is essential to work closely with a farm insurance expert who will get you the best insurance solutions with customized coverage to ensure your commercial operation is protected.

What Coverages Are Available for Farm Insurance?

There are many unique coverages that are available for farm insurance depending on the type of farming you do and the size of your operation. Coverages available for farm insurance include primary farm residence coverage, farm liability coverage, replacement cost coverage, waiver of depreciation coverage, and limited farm pollution liability coverage.

• Primary farm residence coverage protects your home, personal property, and personal legal liability. 
• Farm liability insurance is protection if visitors are injured on your property or if the property of others is damaged due to your farm operations.  
• Farm buildings such as barns, implement sheds, bunkhouses, corn and grain bins, dryers, Quonset buildings, horse stables, silos, greenhouses, and kilns should have replacement cost coverage if the structures qualify. Builders risk coverage is also recommended for farm buildings while under construction. 
• Farm machinery and equipment purchased new, leased, or rented may qualify for waiver of depreciation coverage. Loss-of-use coverage can also be available for qualifying equipment so that in the event of an insured claim, you can rent a substitute piece of equipment to keep your farming operations going following a loss.
• Limited farm pollution liability coverage protects third-party damages caused by an unexpected and unintentional pollution discharge from a structure or container on your property.

An insurance broker will provide you with a competitive insurance package that is tailored to your specific farming needs.

Are There Other Farm Insurance Coverages to Consider?

Depending on the type of farm you operate, you may want to add additional coverage to ensure your farm is properly protected. Some additional insurance coverages to consider may include:

• Hydro poles coverage: Covers physical damage caused by an insured peril to hydro poles, transmission lines, and transformers that are permanently installed on your farm property and owned by the farmer. 
• Livestock coverage: Covers farm animals such as cattle, sheep, goats, poultry, rabbits, mink, horses, or others against perils such as fire, falling objects, or theft. Optional coverages are also available for risks such as heat prostration.
• Produce coverage: This provides coverage for harvested crops or any agricultural product of the soil such as seed, feed, fertilizers, herbicides and pesticides, milk, fruit, and vegetables. Produce insurance can also include spoilage of refrigerated produce and packaging, wrapping, and advertising materials for use with harvested produce. 
• Ginseng shades, seed and dried root coverage: Ginseng shade coverage provides coverage for physical damage caused by an insured peril to the shade and can include coverage for the posts, poles and hardware used in connection with the shade. Coverage can be purchased to cover ginseng seed while it is in storage. The harvested ginseng root coverage can be purchased to protect the root after it has been harvested. Coverage can include root while being transferred from the field, during the curing process and while it is stored.  
• Equipment breakdown coverage: Provides coverage for boilers and mechanical or electrical equipment that is owned or leased by the farm. It covers the sudden and accidental physical damage caused by failure of the equipment. The coverage can also include loss of income caused by the breakdown.   
• Loss of Income coverage: In the event of a covered loss for physical damage to a farm building or farm equipment, the policy will provide coverage for loss of income until you are able to normally begin farm operations again. 
• Farm Umbrella Liability coverage: Provides excess farm liability over the primary limit of coverage on the farm policy. This can also be extended to provide excess automobile liability coverage.  

An insurance broker will walk you through what additional coverages should be considered based on your specific farm insurance needs.

What Are Some Common Farm Liability Risks?

Below are some common farm liability exposures farmers may want to discuss with a farm insurance expert.

• Third-party bodily injury or third-party property damage on your farm property
• Animals escaping, animal bites
• Public access to animals
• Slow-moving farm machinery on the road
• Custom farming, drying, and spraying for others
• Boarding of someone else’s animals
• Pollution discharge
• Storing other’s boats, travel trailers, vehicles
• Farm locations you own or rent
• Pick-your-own activities 
• Roadside stands
• Showing animals at fairs or exhibitions
• Agri-tourism activities such as hayrides or similar events

When you speak with an agriculture insurance specialist, they will ask for details about your farm to ensure you have the right farm liability coverage. 

What Kinds of Farm Insurance Does Morison Insurance Specialize In?

Morison Insurance specializes in a wide range of agriculture insurance, including:

• General Farm Insurance: This protects all types and sizes of farms against insured losses to their home, farm buildings, farm equipment, machinery, liability, and more. 
• Produce Insurance: This provides coverage for harvested crops, seed, feed, fertilizers, herbicides and pesticides, milk, fruit, vegetables, or any agricultural product of the soil. Produce insurance can also include spoilage of refrigerated produce and packaging, wrapping, and advertising materials for use with harvested produce.  
• Farm Equipment Insurance (tractors, combines, implements, equipment, and tools): This protects in case of direct physical damage such as fire or theft of farm machinery and can include valuable GPS navigation units mounted inside tractors and combines. 
• Livestock Insurance: This protects farm animals such as cattle, sheep, goats, swine, poultry, rabbits, mink, horses, or others against perils such as fire, falling objects, or theft.  Optional coverages are also available for risks such as heat prostration.
• Dairy Farm Insurance: This protection is for both dairy cow and dairy goat operations.  It protects buildings, machinery and equipment, livestock, and loss of income for your dairy operation.
• Crop Insurance: This is protection against direct physical damage to harvested crops. 
• Greenhouse Insurance: Coverage for greenhouses used for farming operations protects the greenhouse when an insured peril causes physical damage. Optional snow load coverage is available for physical damage caused by the weight of ice and snow. 
• Hobby Farm Insurance: This is protection for smaller farms with a limited amount of acreage and livestock where farming is not your primary source of income. Coverage can be included for farm buildings, equipment, produce, and livestock. 
• Cash Crop Farm: This protection is for cash crop farmers and farms who grow cash crops as your main operation. Crops would include things such as fruits, vegetables, apples, potatoes, corn, grain, hay etc.
• Beef Farm: This insurance is specialized for beef cattle farms where the main source of income is from beef production.  

Our experts at Morison Insurance want the best coverage for farmers. We will work with you to ensure you receive a customized farm insurance policy to ensure your agricultural operation is properly protected.

Did you know? According the the 2016 Census of Agriculture, Ontario accounted for 25.6% of all Canada's farms with oilseed and grain type operations accounting for the largest number of farms in the province with 34.0% of farms reporting.

How Many Acres Do You Need for Farm Insurance?

There is no minimum or maximum number of acres required for farm insurance.  If you have farm operations – large or small – you need farm insurance. If you have multiple farm locations, each location needs to be listed on your farm insurance policy and liability extended to each. 

How Many Acres Is A Hobby Farm? 

Hobby farms are generally 10 acres or smaller and earn less than $10,000 in farming revenue annually. 

How Much Does Farm Insurance Cost?

The cost of your farm insurance policy depends on several factors. Annual insurance for small farm operations can range from $1,000 to $5,000, medium size farms can range from $5,000 to $20,000, and larger farm operations could cost $20,000 or more. Other factors that will determine the cost of your farm insurance policy include the type of farm you operate, the number of farming locations, the coverages and coverage limits you choose, your claims history, details of the primary dwelling and the farm buildings, and much more. When you work with an insurance broker, they will get you multiple farm insurance quotes to  ensure your farming operation is properly protected with the best coverage at a competitive price. 

How Can I Get Farm Insurance?

You can get farm insurance from Morison Insurance. Our farm specialists proudly serve farmers and the farming community across Ontario. We work with many Ontario farm insurance companies and farm insurance mutuals. When you contact us, we will get to know your farm, and your insurance needs, and we will provide you with competitive farm insurance quotes. Complete the form on our website or call 1-800-463-8074 to speak with a farm insurance specialist today.

This content is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking to one of our brokers.