What to Look for in a Farm Insurance Policy in Nebraska in 2025
Owning and operating a farm in Nebraska comes with unique challenges and risks. From unpredictable weather to equipment breakdowns, having the right insurance policy is essential to protect your livelihood. This guide will help you understand what to look for in a farm insurance policy to ensure you have the coverage you need.
1. Comprehensive Coverage for Property and Equipment
Your farm’s buildings, machinery, and tools are essential to your operations. A good farm insurance policy should include coverage for barns, silos, tractors, and other equipment. Ensure that your policy covers replacement costs rather than just the depreciated value of your property.
Tip: Look for policies that also cover leased or rented equipment, which is common in Nebraska agriculture.
2. Crop and Livestock Protection
Nebraska’s weather can be unpredictable, with droughts, hailstorms, and flooding posing risks to crops and livestock. Crop insurance can protect against yield losses, while livestock coverage can reimburse you for losses due to disease, theft, or natural disasters.
Example: PRF (Pasture, Rangeland, Forage) insurance and LRP (Livestock Risk Protection) are popular options among Nebraska ranchers.
3. Liability Coverage
Farms often have visitors, whether they’re employees, contractors, or customers. Liability coverage protects you if someone is injured on your property or if your operations cause damage to someone else’s property.
Pro Tip: Look for policies that include product liability if you sell goods directly to consumers.
4. Insurance for Farm Vehicles
From trucks to ATVs, your farm vehicles play a critical role in daily operations. Ensure your policy includes commercial auto coverage for these vehicles, especially if they are used on public roads or for transporting goods.
Note: Farm vehicle insurance often comes with specific requirements in Nebraska, so check with a local agent to ensure compliance.
5. Coverage for Natural Disasters
Nebraska farms are vulnerable to tornadoes, hail, and floods. While standard policies may include some weather-related coverage, it’s crucial to understand what is and isn’t covered. You may need additional endorsements for specific risks like flooding.
Tip: Review your policy’s exclusions and consider adding riders for uncovered natural disasters.
6. Business Interruption Insurance
Unexpected events like equipment failure or severe weather can disrupt your operations. Business interruption insurance provides financial support to cover lost income during downtime, helping you stay afloat until you can resume normal operations.
Example: This coverage can be particularly valuable during planting or harvest seasons when delays can have significant financial impacts.
7. Customizable Policies
Every farm is unique, and your insurance policy should reflect that. Work with an insurance provider who offers customizable options to meet your specific needs, whether you run a small family farm or a large commercial operation.
Pro Tip: Tailor your coverage to include specialty crops or niche farming operations that may not be covered under standard policies.
8. Endorsements for Additional Coverage
Endorsements allow you to add specific coverages to your policy. Common endorsements for Nebraska farms include:
Equipment breakdown coverage: Protects against mechanical failures.
Pollution liability: Covers accidental spills or environmental damage.
Cyber liability: Essential for farms using modern technology and digital systems.
9. Affordable Premiums and Discounts
While comprehensive coverage is crucial, affordability matters too. Ask your insurer about discounts for:
Bundling farm and home insurance policies.
Installing security systems or fire prevention measures.
Maintaining a claim-free history.
Bonus: Many Nebraska insurers offer loyalty discounts for long-term customers.
10. Work with a Local Nebraska Insurance Agent
Local agents understand the unique challenges faced by Nebraska farmers. They can help you navigate state-specific requirements, recommend tailored coverages, and provide ongoing support.
Example: A local agent can advise on specialized coverage for hailstorms, which are common in Nebraska.
Final Thoughts
Choosing the right farm insurance policy is a critical step in protecting your livelihood and ensuring the longevity of your operations. By focusing on comprehensive coverage, natural disaster protection, and customizable options, you can find a policy that meets your needs without breaking the bank.
At Nebraska Owner’s Insurance Agency, we specialize in providing personalized insurance solutions for Nebraska farmers and ranchers. Contact us today for a free consultation and let us help you secure the best agriculture coverage for your farm.