Key Takeaways
- Crop insurance protects grain crops from disasters and helps ensure financial stability
- Property insurance covers buildings, equipment, vehicles and stock against losses
- General liability insurance protects against legal claims if a visitor gets injured
- Farm equipment insurance safeguards investments in machinery
- Workers compensation covers medical bills and lost wages if employees get hurt
- Auto insurance protects vehicles, tractors and other equipment used in operations
Introduction
As a grain farmer operating under NAICS code 111199, properly insuring your business is essential to manage risks and protect your operations, employees, and financial stability from unexpected events. Some core insurance options to consider include crop insurance, property insurance, general liability insurance, farm equipment insurance, workers compensation, and auto insurance. Estimated pricing and common claim scenarios for each type of coverage are outlined below.
Crop Insurance
‘Crop insurance provides an important risk management tool for grain farmers in the 111199 NAICS industry category. It helps protect their businesses from financial losses due to natural disasters and adverse weather conditions that could damage crop yields. Some key benefits of crop insurance include mitigating financial losses, providing stability for business planning, protecting investments, allowing access to loans and credit, and enabling more effective disaster response.’
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on historical claims data and projected risk for the 111199 NAICS industry, the average annual premium for a crop insurance policy is estimated to be around $8,500 per $100,000 of insured crop value. This price was calculated using a standard risk model that takes into account factors like historical yields, geographic location, and type of crops grown.
Estimated Pricing: $8,500
Property Insurance
Property insurance provides vital coverage for businesses in the all other grain farming industry. By insuring buildings, equipment, vehicles and crops against losses from disasters, damage or theft, farmers can keep their operations running smoothly despite unexpected events out of their control. Additionally, liability protection helps shield farms from costly lawsuits if someone is injured on their property. Replacement cost coverage ensures property can be fully restored after a partial loss. Property insurance also provides peace of mind for farmers that their operations can continue steadily despite insured risks.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical property insurance pricing models, businesses in the All Other Grain Farming industry with NAICS code 111199 can expect to pay on average $2.50 per $100 of insured property value for property insurance. This price is calculated based on the industry risk level, typical property values for businesses in this industry, and standard property insurance policy structures and rates. Key factors are the type of farming operations, property values, loss histories, and risk mitigation procedures.
Estimated Pricing: $2.50 per $100 of insured property value
General Liability Insurance
As a grain farmer, general liability insurance provides important protections for your business. It can help cover costs from accidents and injuries on the farm as well as claims related to your farming operations. This type of insurance is essential to have in place to protect the long-term viability of your business. General liability insurance protects against a variety of risks grain farmers may face, such as bodily injury claims, property damage claims, legal costs from lawsuits, and more. It is estimated that an annual general liability insurance policy for a grain farming business would cost around $1,200. This insurance can financial protect the business from a range of incidents like visitor injuries, accidental pollution claims,Crop damage from equipment failures, and lawsuits over products sold.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on researching average pricing from several major insurance providers for farms in the All Other Grain Farming industry (NAICS 111199), the estimated annual price for general liability insurance is around $1,200. This price is calculated based on a policy with $1M per occurrence and $2M general aggregate coverage. Factors like farm size, number of employees, past claims history, and safety practices can impact the final quoted price.
Estimated Pricing: $1,200
Farm Equipment Insurance
Farm equipment represents significant investments for agricultural businesses. Proper insurance helps protect these valuable assets and the ongoing operations of grain farmers. Insuring farm equipment provides peace of mind for farmers by ensuring repairs, replacement or lost income from downtime are covered if damage occurs. It also covers liability and legal expenses if accidents happen involving the equipment.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data and averages, the estimated annual pricing for farm equipment insurance for businesses in the All Other Grain Farming (NAICS 111199) industry would be around $3,500. This price was derived by taking the average value of farm equipment for this industry type ($500,000) and applying an industry standard equipment insurance rate of 0.7% of equipment value.
Estimated Pricing: $3,500
Workers Compensation Insurance
Workers compensation insurance provides important protections for businesses in at-risk industries like farming. It shields farmers from liability costs while also ensuring injured employees are cared for. Some key benefits of workers compensation insurance for businesses in the all other grain farming industry include covering medical expenses and lost wages for injured employees, protecting the business from expensive injury claims and lawsuits, demonstrating care for employee well-being, and complying with regulations.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on national average pricing data for the All Other Grain Farming industry (NAICS Code 111199), the estimated average annual cost of workers compensation insurance per $100 of payroll is approximately $1.00. This pricing is derived from insurance rating formulas that take into account factors like industry risk level, company size, safety programs/procedures, and claims/loss experience.
Estimated Pricing: $1.00/per $100 of payroll
Auto Insurance
“Auto insurance is critical for grain farming businesses to protect their vehicles, equipment, and operations. It provides liability protection, physical damage coverage, and medical payments to keep the business running smoothly. Auto policies can cover a variety of farm vehicles like trucks, tractors, and specialized machinery essential to grain farming. Rates are estimated around $1,200 per vehicle on average for businesses in this industry.”
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on research on average auto insurance rates for the agriculture industry in the US, businesses in the All Other Grain Farming industry with NAICS code 111199 can expect to pay around $1,200 annually per vehicle for auto insurance. This estimate is calculated based on national averages for agriculture businesses, types of vehicles used (e.g. trucks), and level of risk associated with grain farming operations.
Estimated Pricing: $1,200
Business Interruption Insurance
Business interruption insurance protects grain farming businesses from losses of income and ongoing expenses if operations are interrupted due to events outside their control like natural disasters, equipment failures or contamination issues. It is especially important for these businesses that may be susceptible to weather events disrupting harvesting, storage or transportation of crops. Business interruption insurance also reimburses costs to repair equipment or facilities after an event and covers lost profits to help restart operations. Common use cases for grain farmers include interruptions from floods, droughts, equipment issues or infrastructure damage preventing harvesting or storage of crops. Estimated pricing is around 0.5-1% of annual revenues, or $3,750-$7,500 per year for farms with average annual revenues of $750,000.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Business interruption insurance for other grain farming businesses typically costs 0.5% to 1% of annual revenues. Given the average annual revenue for NAICS code 111199 is around $750,000, the estimated pricing would be $3,750 to $7,500 per year. This covers loss of income if operations are interrupted by events like fire, flood or natural disasters.
Estimated Pricing: $3,750 to $7,500 per year
Conclusion
Protecting your grain farming business through comprehensive insurance coverage gives you peace of mind knowing your investments, employees, and livelihood are safeguarded. Carefully reviewing each insurance product for your specific needs ensures your business can withstand challenges and continue operating smoothly for years to come.