Key Takeaways
- General liability insurance protects against injuries on your property and damage to others’ property
- Property insurance covers buildings, equipment, vehicles, and crops against disasters
- Livestock insurance provides financial protection for your herd from risks like disease or injury
- Crop insurance offers protection against losses from weather events that damage unharvested crops
- Business owner’s policy combines multiple insurance needs into one convenient package
Introduction
As a dual-purpose cattle rancher or farmer, you invest significant resources into your land, facilities, livestock, equipment and crops. Unfortunately, unexpected events outside of your control like accidents, weather disasters or animal health issues threaten to wipe out these investments. Key types of business insurance can help protect your livelihood by covering costs of property damage, replacing assets, covering lost revenue and shielding you from liability lawsuits.
General Liability Insurance
General liability insurance is an important coverage for businesses in the dual-purpose cattle ranching and farming industry with NAICS code 112130. It protects the business from financial losses due to accidents or injuries involving customers, visitors, livestock or equipment on the ranch property. Common risks for ranching operations include incidents with livestock, vehicle accidents, and environmental pollution that could result in costly lawsuits without adequate liability protection. The estimated average annual cost for general liability insurance for these types of businesses ranges from $1,500 to $2,500.
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Based on typical insurance pricing models, the estimated average annual cost for general liability insurance for businesses in the dual-purpose cattle ranching and farming industry with NAICS code 112130 would be around $1,500 – $2,500. Insurance pricing is derived from analyzing factors such as revenue, number of employees, livestock counts, acreage, loss history and other risks.
Estimated Pricing: $1,500 – $2,500
Property Insurance
Property insurance offers essential protection to cattle ranching and farming businesses against potential financial losses from disasters and other risks. It covers a variety of assets these operations rely on like buildings, equipment, livestock and crops. Property insurance also provides peace of mind and financial security for these businesses that invest heavily in valuable property and assets needed for their dual-purpose cattle ranching and farming operations.
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Based on typical pricing for property insurance for medium sized farms and ranches in the United States, the estimated average annual pricing would be around $5,000. This pricing takes into account factors like farm revenues (typically $500K-5M for this industry), number of buildings and structures, number of livestock, types of equipment and machinery. The pricing was also benchmarked against industry data from NAICS 112130.
Estimated Pricing: $5,000
Livestock Insurance
Livestock insurance provides an important risk management tool for cattle ranchers and farmers raising dual-purpose cattle. It can help protect their livelihood and investment in the herd from unexpected losses.
Some key benefits of livestock insurance for operations in the dual-purpose cattle ranching and farming industry include covering losses from death of animals, paying for veterinary costs and lost revenue during disease outbreaks. Common use cases that are insured include natural cause mortality, liability, theft and lost profits. Pricing is usually calculated based on herd size and value, with an average annual cost of $15-20 per head.
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Based on typical pricing models for livestock insurance, the estimated average annual price for cattle ranching and farming operations with NAICS code 112130 would be around $15-20 per head of cattle insured. The price is usually calculated based on the total number of cattle in the herd, the average value per head of cattle, and the insured percentage of the total herd value (usually 70-90%). For a medium sized operation with 100 cattle valued on average at $2,000 per head, insuring 80% of the total herd value, the estimated annual premium would be $16 per head.
Estimated Pricing: $15-20 per head
Crop Insurance
Crop insurance provides an important risk management tool for dual-purpose cattle ranchers and farmers. It offers protection from financial losses due to unexpected natural disasters or weather events that damage crops.
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Based on the average costs of typical crops grown by dual-purpose cattle ranching and farming businesses such as hay, corn, soybeans, the estimated average annual premium would be approximately $8,000 – $12,000. This pricing is derived from national average premium costs per acre of major field crops weighted by typical acreage planted across operations in this industry.
Estimated Pricing: $10,000
Business Owner’S Policy
A business owner’s policy provides essential insurance protection for dual-purpose cattle ranching and farming operations under NAICS code 112130. It combines multiple coverages into one comprehensive policy to protect their diverse property, liability, business interruption, and other exposures associated with both livestock and crop activities. The top benefits of a BOP for these operations include property coverage, general liability coverage, business interruption coverage, vehicle coverage, employment practices liability coverage, identity theft coverage, and advertising injury liability coverage. Key uses of a BOP are property and liability protections as well as business interruption coverage. The estimated average annual pricing for a BOP for dual-purpose cattle ranching and farming with NAICS 112130 is $4,500 based on factors like operation size, property values, revenue, and multiple risk exposures.
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Based on industry data and our underwriting guidelines, the estimated average annual pricing for a Business Owner’s Policy for dual-purpose cattle ranching and farming operations with NAICS code 112130 is $4,500. This price takes into account factors like the size of the farming operation (average being 500 acres and 100 head of cattle), property values, revenue, and the multiple risk exposures associated with both livestock and crop farming activities.
Estimated Pricing: $4,500
Conclusion
This article covered the top business insurance policies dual-purpose cattle ranchers and farmers should consider, including general liability, property, livestock and crop insurance. By gaining an understanding of these coverage options, you can make informed choices to safeguard your business operations and finances from unpredictable events.