As situations evolve so must the insurance policies tied to them.
Whenever life changes happen, re-evaluating your insurance needs is a good habit to get into and this is never more true than when it comes to your farm insurance.
WHY IT’S A GOOD IDEA TO REVIEW YOUR FARM INSURANCE NEEDS REGULARLY
Your agribusiness is not a set-it-and-forget-it type of career. It’s a dynamic field (pun intended) filled with twists and turns so it’s important to make sure your insurance is continuously adjusting right along with it.
The two primary reasons why we suggest you keep a close eye on your policy would be:
1/ SPEND LESS ON FARM INSURANCE
Spending money on insurance is not something any of us enjoy doing. While in the vast majority of cases, it’s a necessary layer of protection, NO ONE wants to be spending more on it than they need to be.
- Are you generating less revenue these days compared to when you first signed your insurance papers?
- Have you recently sold a couple of large pieces of farm equipment?
- Is your farm property mortgage paid off?
- Have the kids moved out?
These are all worthy questions to ask yourself which can each influence lowering your insurance needs (and thus your insurance costs).
Don’t keep paying for your 2019 insurance needs if they’re no longer relevant to you today.
2/ MAKE SURE YOUR FARM IS PROTECTED
On the flip side of the same coin, you should also be asking yourself things like:
- Have I started into a whole new revenue stream?
- Have I purchased a new tractor for my farm?
- Have I recently expanded the number of livestock I’m raising?
An even worse scenario you could face if your farm insurance does not accurately represent your farm as it stands today would be if you suffer a loss that you are not set up to be covered for.
Whenever changes related to growth, expansion or change occur on the farm, remember to give your insurance provider a call to see if there are any adjustments required to your policy.
One phone call can easily save you from a potential world of hurt somewhere down the road.
It’s too late to retroactively review your insurance after an incident has occurred.
The much better option is to be proactive and make sure you’re protected for any scenario. Keeping an up to date list of equipment is one of the most important things you can do as that is most often the most frequent change on many farms. Be sure to review equipment lists with your insurance agent to make certain that your list matches the list on your farm insurance policy – for both the items and the correct values!
IS THERE AN IDEAL TIME OF YEAR TO REVIEW YOUR FARM INSURANCE?
Well, it depends.
Every farm and situation is different so there is no single correct answer to this question, however, we’re hoping one of the factors below speaks to you.
1/ WHEN YOU’RE “NOT BUSY”
If you’re a farmer you probably know all too well that there isn’t any actual “off-season” (#FarmLife), but chances are there are times of the year when the workload tends to ease up enough for you to take a look around.
If you operate a farm that is mainly involved in outdoor food production, the winter is typically a slower time which makes it a good time of year to have a look at your farm operations, including farm insurance.
Looking over documents and talking with insurance agents is more than likely not something you have time or interest in doing when you’re in your busiest season.
2/ AHEAD OF YOUR NEXT RENEWAL
Most insurance policies have an annual renewal schedule and this makes for the perfect time to review your policy.
Since the last time you renewed your farmer’s insurance, have there been any big changes? Check out the list above.
Before your next renewal, are you planning on making any changes that you feel might impact your policy?
Since insurance is already a topic on your mind because of the renewal, now is the perfect time to give some extra thought to re-evaluate your needs.
3/ HAPPY BIRTHDAY! HERE ARE SOME INSURANCE DOCUMENTS.
Sometimes there’s nothing like realizing you’ve made another trip around the sun to evaluate your position in life and what needs you have.
For some people, the time around their birthday is the perfect time to bust out the books and see what things you can do to improve things or do some future planning.
If you’re wondering if your existing insurance is ideal for you and would like a review, we have farm insurance specialists to help guide you through the process.
Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.