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Farm vs Commercial Insurance


Do you operate both a farm and a business? Did you know that you need to discuss this with your insurance broker? All policies contain limitations and one very basic one is that a farm policy covers farm property and operations while a Commercial policy covers business property and operations.

A farm policy will not automatically cover business exposures and property. It is not to say that it can’t but you need to discuss this and make the necessary arrangements for the added exposure. Otherwise, the insurance policy may not respond at the time of a loss.

A few examples of business operations are custom combining, doing business work in your farm shop, storing business use machinery in your machine shed or this could mean selling a product from your home. In any of these situations you may find yourself without coverage. More specifically at the time of the claim if it is discovered that the workshop is used to manufacture a product and they have not been made aware of. The building insurance and all of its contents, even if it is listed on the policy, may not be covered at all. It is possible that a loss that has nothing to do with the business operations (ie: hail damage) could also be declined. This would mean no payment for the loss simply because you did not talk to your broker about your operations.

Talk to your insurance broker about all of your activities today! Be sure to seek advice and purchase insurance from those who understand your business!