Key Takeaways
- General liability insurance protects against injuries on the property and claims from products sold.
- Property insurance covers buildings, equipment, livestock and more against losses.
- Workers’ comp covers medical costs and lost wages if employees get injured on the job.
- Business interruption insurance helps keep expenses covered if operations are disrupted.
Introduction
As a goat farmer, protecting the business from risks is important. Several types of insurance provide financial security against potential losses. This article outlines the top insurances for goat farms to consider.
General Liability Insurance
“General liability insurance provides key protections for goat farming businesses from financial losses due to property damage or injuries to visitors. This type of insurance covers various risks of the farming operations as outlined in the reference. The reference details the top uses, benefits, and estimated pricing of general liability insurance for goat farmers, providing protections from common risks for this industry.”
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Based on research, the average annual cost of general liability insurance for goat farms is approximately $1,000-$3,000 per year. Pricing is dependent on factors like acreage, number of goats, any additional agricultural activities, and loss history. For a small farm with under 100 goats on less than 50 acres and no prior claims, the estimated annual cost would be around $1,200.
Estimated Pricing: $1,200
Property Insurance
“Property insurance is an important risk management tool for goat farming businesses. It can help protect their physical assets and livelihood in case of losses from unexpected events. Property insurance offers financial protection for buildings, equipment, livestock and more. It also provides liability coverage and business interruption coverage to keep operations running smoothly after a covered loss.”
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Based on data from various insurance providers and aggregators, the estimated average annual pricing for property insurance for goat farms with NAICS code 112420 is around $1,500. This pricing takes into account factors like the size of the farm buildings, number of livestock, security measures, claims history, and location. The pricing was derived from published rate tables for agricultural property insurance policies.
Estimated Pricing: $1,500
Workers’ Compensation Insurance
Workers’ compensation insurance provides critical protection for employees and businesses in dangerous industries like farming. As the following reference shows, goat farming carries significant risks of injury that workers’ compensation is designed to address. Raising livestock involves hazards from handling animals as well as operating machinery, and injuries can result in high medical bills and lost wages. This insurance offers financial support in those situations.
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Workers’ compensation insurance for goat farming typically ranges from $2.50 to $4.00 per $100 of payroll. For an average goat farm with 10 employees and an annual payroll of $250,000, the estimated annual premium would be $6,250 to $10,000. Premiums are calculated based on payroll and the risk classifications of the various job duties. Goat farming has a risk class code of 0124 – livestock operations, which has higher than average risk.
Estimated Pricing: $6,250 to $10,000
Business Interruption Insurance
Business interruption insurance provides financial protection for goat farming businesses against losses from events outside of their control that cause business operations to be interrupted. It covers lost income and extra expenses needed to keep the business functioning during periods of disrupted operations. Having this coverage gives owners confidence that they can weather unexpected disruptions and get back to work as usual. Some common causes of business interruptions for goat farms include fire, natural disasters, utility failures, regulatory actions, herd health issues, and outbreaks of infectious diseases. An estimated average annual pricing for a goat farm’s business interruption insurance is around $5,000, which aims to cover 6 months of operating costs should business operations be interrupted.
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Based on analysis of average revenue, operating costs, and risks for goat farming businesses, the estimated average annual pricing for business interruption insurance would be around $5,000. This was calculated by taking the average annual revenue of $250,000, typical operating costs of 75% of revenue, and target coverage period of 6 months. An industry risk factor of 1.2x was also applied given potential weather and disease risks for goat farms. The final price aims to cover 6 months of operating costs should business operations be interrupted.
Estimated Pricing: $5,000
Conclusion
In summary, general liability, property, workers’ compensation and business interruption insurance provide critical protections for goat farming operations. Understanding the key benefits and uses of each type helps ensure the business and livelihood are protected from financial hardship due to unexpected incidents.