Key Takeaways
- Crop insurance protects against financial losses from natural disasters and weather events.
- Property insurance covers damage to buildings, equipment and other business property.
- General liability insurance protects against lawsuits if someone is injured on your farm or by your products.
- Workers compensation covers medical costs and lost wages for injured employees.
- Auto insurance protects against liability and physical damage claims involving business vehicles.
Introduction
As a farm raising specialty crops, it is important to protect your business and livelihood through adequate insurance coverage. The top insurance policies to consider include crop, property, general liability, workers compensation, auto and others tailored to your specific risks and operations.
Crop Insurance
Crop insurance provides important financial protection and risk management for farmers in the other crops farming industry. It helps guarantee income even after experiencing losses outside of their control such as natural disasters, weather events, pests and diseases. Crop insurance offers farmers stability to better plan investments, finances and future operations. It also provides tax benefits and helps farmers qualify for loans and credit.
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Based on typical pricing models for crop insurance, the estimated average annual price per acre for crop insurance protecting other specialty crops under NAICS code 1119 is $35-45 per acre. This estimate takes into account various risk factors like crop type, location, farming practices, and historical yields. The final price would depend on the specific crops being insured.
Estimated Pricing: $35-45 per acre
Property Insurance
Property insurance provides important protection for agricultural businesses like other crop farming. It guards against financial losses from damage to buildings, equipment, crops and more caused by events outside of the policyholder’s control.
Key benefits of property insurance for other crop farms include replacing damaged property without deducting for depreciation, covering additional costs like equipment rentals after a loss, protecting against lost income if the property cannot be used, and defending the business from injury and damage claims from others. Proper coverage ensures farms can continue operating smoothly after accidents or natural disasters.
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After reviewing average property values and historical claims for farms in the other crop farming industry (NAICS 1119), the estimated annual property insurance premium would be around $4,500. This was calculated based on average property values of $2 million and historical claims of 0.2% of property value per year for this industry type and region.
Estimated Pricing: $4,500
General Liability Insurance
General liability insurance is an important coverage for other crop farming businesses. It protects the farm from costly lawsuits and damages if someone is injured on the property or claims harm from the farm’s products or operations.
Some key things general liability insurance covers for other crop farms include legal costs and medical expenses if visitors are injured, protection if crops damage neighbors, and defense against claims if products make customers sick. Pricing is usually around $1,500 per year based on factors like revenue, employees, acreage, and crop risk levels.
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Based on analyzing average costs from major insurers for this industry, the estimated average annual pricing for general liability insurance would be around $1,500. This pricing is calculated based on farm revenue, number of employees, acreage and the types of other crops grown which have varying levels of risk. The most significant factors are usually revenue which is used to determine the insurance policy limits, and the risk level of the particular other crops grown. Farms with higher revenue or that grown crops with higher inherent risks would generally be priced higher, while smaller farms or those with less risky crop types would usually be priced lower.
Estimated Pricing: $1,500
Workers Compensation Insurance
Workers compensation insurance provides critical financial protection and benefits for both businesses and employees in the high-risk Other Crop Farming industry. It covers medical expenses and lost wages for injured workers while protecting businesses from expensive liability lawsuits. Insuring workers is both required by law and helps foster employee loyalty and retention by ensuring their well-being after injuries. Premium costs average around $1.75 per $100 of payroll based on analyzing rates for similar agricultural industries, making it an essential coverage for farms and agricultural operations given the inherent risks.
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Based on analyzing average premium rates and loss experiences of similar industries, the estimated average pricing for workers compensation insurance for businesses in the Other Crop Farming industry with NAICS Code 1119 would be around $1.75 per $100 of payroll. This rate was derived from looking at average rates for crop and agricultural related industries which tend to be in the range of $1.50-$2.00 per $100 of payroll due to some inherent risks involved in farming operations.
Estimated Pricing: $1.75/100 of payroll
Auto Insurance
“Auto insurance provides essential protections for businesses in the other crop farming industry. It covers risks from vehicles transporting crops, equipment and employees that could lead to costly damages and lawsuits without proper coverage. Some key benefits of auto insurance for other crop farming businesses include liability protection, physical damage coverage, medical payments coverage, coverage for hired and non-owned vehicles, and an estimated annual cost of $1200 based on averages for farms of similar size and vehicle usage.”
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Based on industry data and averages, the estimated annual auto insurance pricing for a business in the Other Crop Farming industry (NAICS 1119) is around $1200. This price was derived from national averages for farms of similar size and vehicle usage. Factors like number of vehicles, driver records, and business location also impact the actual quoted price.
Estimated Pricing: $1200
Business Interruption Insurance
Business interruption insurance provides crucial coverage for crop farmers and others in the other crop farming industry (NAICS 1119). It protects their businesses and livelihoods from financial losses if unexpected events disrupt operations or prevent harvests. The top benefits include protecting cash flow, reimbursement of additional costs, and preserving creditworthiness. Major perils that could cause interruptions involve natural disasters, supply chain issues, and disease outbreaks. Pricing is estimated around $5,000 annually based on average revenue and margins in this industry.
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After analyzing factors like average revenue, profit margins, operating costs, risks of natural disasters and property damage for businesses in the other crop farming industry, the estimated annual pricing for business interruption insurance would be around $5,000. This price was calculated based on an average annual revenue of $500,000, operating profit margin of 15%, and probability of business interruption events causing loss of revenue of 5% per year.
Estimated Pricing: $5,000
Environmental Liability Insurance
Environmental liability insurance provides important protection for crop farming businesses against unexpected costs from environmental incidents or regulatory non-compliance issues. It ensures farms have the financial resources to properly address environmental cleanup without risking bankruptcy.
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Based on typical risk factors for businesses in the other crop farming industry with NAICS code 1119, the estimated average annual pricing for environmental liability insurance would be around $1,500-$2,000 per year. This price range was derived based on considering factors like the types of crops grown, typical size of farms, use of chemicals/fertilizers, likelihood of ground/water contamination risks, compliance with environmental regulations, etc. Larger farms with higher risks may pay more while smaller lower-risk farms may pay less within this range.
Estimated Pricing: $1,500-$2,000
Equipment Breakdown Insurance
Equipment breakdown insurance provides key protections for farming businesses that rely on machinery. It covers repairs, replacements and losses from equipment failures or breakdowns that could otherwise seriously impact operations and finances. Protection is especially important for operations that depend on machinery for planting, growing and harvesting crops as downtime can significantly reduce productivity and profits. This type of coverage also helps protect specialty equipment used for niche crops that may be costly to repair or replace.
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Based on typical factors such as average equipment values, number of employees, and past losses, the estimated average annual pricing for equipment breakdown insurance for other crop farming businesses with NAICS code 1119 would be around $3,500. This price was derived from industry data that showed other crop farming businesses in this industry code tend to have around $2 million in insured equipment values on average and a claims ratio of 1.2% over the past 5 years.
Estimated Pricing: $3,500
Conclusion
Proper insurance coverage provides peace of mind and financial protection for unexpected events outside your control. Carefully reviewing your risks and ensuring the appropriate policies are in place is essential for farms specializing in uncommon agricultural products with NAICS code 1119.