Have A Hobby Farm? 3 Reasons You Should Carry Insurance On It
Hobby farms have become a big trend over the past decade. Hobby farms are farms that are much smaller than industrial farms. Hobby farms are usually dedicated to something specific, such as a beekeeping farm or a farm that grows organic berries. If you are running any type of small farm, you may need to carry insurance on it separate from your homeowner's insurance policy.
#1 Homeowner's Insurance May Not Cover Your Farming Equipment
Call your insurance provider and find out if they will cover your farming equipment if it is damaged. Many insurance policies have specific wording within the policy so that your insurance company doesn't have to cover damage related to any business you are running out of your home or damage related to your farming activities. This is wording you may not have even noticed when you signed your homeowner's insurance policy. Don't assume your farming activities are covered, especially if you make any money at all from your farming activities. You more than likely will need to purchase a farm insurance policy.
#2 You Need to Protect Your Income
Even if you only depend on the money from your hobby farm as a side income, it can still hurt to lose out on that money. Losing out on that money can impact your budget. When you purchase a separate farm insurance policy, lost wages will be covered if you lose sales because something happens to your equipment, building, or field, and your insurance will make up for the income that you are losing out on. Losing any income, even supplementary income, can be harmful.
#3 You Need to Protect Yourself Against Accidents
Hobby farms tend to grow with time, especially if you discover some degree of financial success with your farm or the products become popular. When your farm grows and you bring in outside workers, there is always a risk of injury. If anyone outside of yourself works on your farm or at your farm booth, you are going to need to make sure that you have a policy will cover you. Personal injury lawsuits can be devastating if you don't have insurance, so make sure that protect your farm.
If you are running a hobby farm, you need to reach out to your commercial insurance agent and make sure that your hobby farm property and activities are protected by your current insurance policy. If your activity is not protected, you'll need to get the right policy to protect your hobby farm.