To any agricultural producer, farm insurance might seem like a burden. After all, it’s an ongoing expense that might cut into your overall profit margins. Still, this is one of the most important risk management tools that any farmer needs.

No farm is immune to damage risks and other liabilities, but the right insurance benefits will ensure you have a financial resource available to help you navigate these challenges. In the end, it is much more of an asset than a burden.

Take a look at some of the most common misconceptions about this type of insurance, what it does and why you need it.

#1: You Only Need the Basic Coverage

To some people, buying farm insurance just means buying the most basic coverage available. This is risky because it could leave you without coverage in some very critical loss scenarios. It’s much more of a value to you to work with your agent to customize your benefits so that they are specific to your operations. In the end, you want your policy to provide coverage that’s unique to your farm, not to your competitor’s.

#2: Workers' Compensation Insurance Is Not Required

Though workers’ compensation laws vary widely, many agricultural producers are required to provide this coverage for their employees, even if they own a family farm. It’s there to help employees receive financial support following on-the-job injuries or illnesses.

#3: You Don’t Need to Insure Personal Belongings on Your Farm

Some farms are also homes, and in this case, you need to protect your personal property as much as you need to protect commercial assets. Blanket property insurance will help you insure both personal and commercial assets under the same plan.

#4: You Don’t Need Scheduled Items Coverage

Under standard property insurance, you might find that high-value or specialty items might not have full coverage. However, if you schedule your personal property under a policy endorsement, then you’ll insure a particular item for its specific value, and under coverage that much more matches the financial risk associated with the item.

#5: Farm Insurance Is Not Affordable

Farm insurance does not have to be expensive, and you don’t have to sacrifice critical benefits just to be able to save money on your rates. There are numerous carrier options on the market, and countless ways to tailor and combine benefits so that you’ll always be able to receive both optimized coverage and optimized prices.

Ultimately, farm insurance gives you asset and liability coverage your farm needs to have. The right coverage is possible when you work closely with an insurer dedicated to helping you.