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What You Need to Know About Farm & Ranch Insurance

A guide to farm and ranch insurance Clients often ask us about the risks associated with the farm and ranch lifestyle. Perhaps you grew up in the saddle and can’t imagine a world without horses. Or maybe it started with family drives through the countryside dotted with livestock. Or you might have just recently fallen for the comforting allure of the wide-open outdoors. Whatever brought you here, you are in the right place. We at Alliant Private Client understand the care and commitment that define the farm and ranch lifestyle because we are horse people as well as landowners ourselves. We, too, feel the pull. But we also know how potentially challenging this lifestyle can be, not least when it comes to ensuring that your family and property are sufficiently protected from the many inherent risks. And we know how much it means to be able to pursue your passion without worry. For us, size doesn’t matter: We have handled farm and ranch properties as small as one acre and as large as 10,000+ acres, and our goal and process are the same in every case. You can be sure that our expert counsel will help you to fully understand your exposure while providing creative, cost-efficient insurance solutions to minimize it. To help you better understand the risks and mitigate any losses, we asked two of our Equine, Farm & Ranch team members, practice leader and senior vice president Joe Norick (JN) and account manager Madison Newman (MN), to answer some of the most fundamental questions here:

Do I need farm & ranch insurance? JN: If you own any animals beyond domesticated pets, or if you own property that hosts farm or equestrian activities, this type of coverage is certainly worth investigating. To be sure, there is no typical client profile: One might own a 12-stall stable with an arena, six paddocks and a walking machine in Florida; another a vineyard in California; a third a one-horse barn in upstate New York. One situation that does call for this insurance is when income is earned from activities on the property—be it from horses, vineyards, or amenities—as many homeowner’s policies exclude such coverage.

What are the major risks and areas of concern of farm and ranch ownership? JN: Liability. If you keep horses or other livestock you are at higher risk of being sued— period. Imagine this scenario: Your fenced-in property is not open to the public. As one of your horses stands at the edge of the paddock, someone happens to be walking by and stops to pet your horse. Unfortunately, the horse bites the individual. Or, maybe one of your cows breaks through the fencing and lumbers onto the road causing a collision, severely injuring the occupant. In such scenarios, and many more, you could be held liable, even if all safety measures are in place and the appropriate signs posted.

Likewise, trainers need a liability policy, given the likelihood of riders being thrown or students and their visitors being otherwise injured. Finally, anyone who houses other people’s animals should protect themselves against potential liabilities, from a farmhand who accidently stabs a horse with a pitchfork while mucking a stall to a runaway tractor that hits a car. MN: Buildings. Farms and ranches are often comprised of multiple structures—main dwelling, barn, outbuildings, paddocks, fencing. All of them face the typical risks, such as fire, water damage or whatever other hazards, natural or otherwise, might result. MN: Equipment. Farms and ranches generally house a significant amount of expensive machinery and vehicles: tractors, drags, mowers, golf carts, therapeutic machines. The necessary accessories of the lifestyle—tack, saddles and show setups, for example— also come with significant price tags. If an animal kicks a $50,000 machine rendering it unusable, you will be glad you have coverage. Separately, theft can also be a major problem, especially when you are on the road at horse shows. JN: Transportation. Owning animals, particularly horses, usually includes a fair amount of getting them from place to place, for shows and competitions and the like. And once you are on the road you are subject to the hazards of the road, from accidents to blowouts. We have also been around long enough to know that no matter how well you pack a trailer, whatever is inside can get damaged.

What can I do to mitigate the risk to my property and equipment? MN: We recommend that every building on premises is properly outfitted for climaterelated concerns—freeze barriers for snow loads in the northeast; wind mitigation, such as impact windows and shutters, in hurricane-prone areas like Florida; and brush mitigation for wildfires in the west. Some farm buildings are particularly vulnerable because of their size and construction. Similarly, fences need not only be properly installed but consistently maintained. And to minimize the potential theft of property—which, unfortunately, is a constant threat, especially at horse shows—we urge our clients to get into the habit of locking all their property up always.

What type of coverage is available and how much do I need? MN: We provide our Farm & Ranch clients with a comprehensive risk management strategy that covers residence(s) and other buildings on the property, as well as all the equipment, vehicles and attendant liabilities. If people are employed on the property, we often recommend worker’s comp as well, as many states pursue claims against small operations when accidents occur—which they often do. On the subject of amounts, the more relevant question is: How much can you afford to cover out of pocket should a catastrophic event occur? We will make sure you are adequately compensated for the difference. Liability is our biggest concern since the payouts, although rare, tend to be extreme.

What is Alliant Private Client’s approach to Farm & Ranch coverage? JN: Most important, we are guided by our decades of experience and hands-on knowledge of this lifestyle’s risks and challenges. We are uniquely positioned to parlay our intimate understanding of the ins and outs of ownership— from boarding and management to property upkeep to maintenance—into the most effective programs. But whether that means scheduling buildings and equipment individually to ensure proper reimbursement or purchasing worldwide transit coverage or excess liability, the goal remains simple: to keep everything in your life on track, even if the worst happens. Our team is always here for you.

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