by If you are a rancher or breeder and want to protect your animals, do you know the best solution? Today, there are livestock insurance options, with several benefits to protect your livestock and your investment. Despite this, many people are in doubt whether it is worth investing.
Through this type of insurance, the protection of your dairy herd, beef cattle or livestock for another purpose is guaranteed, with the right to compensation in the event of any serious adversity with the animals or in events that involve them on your rural property .
So understanding what it is, how it works, and how this type of insurance prevents damage by protecting your animals will help you determine if it’s something your farm needs. In this post, we will clarify your main doubts. Check out!
What is herd insurance?
Herd insurance helps cover the loss of animals, whether they are on the farm or in transit. While this type of insurance policy is most often used to insure farm animals such as horses, cattle, swine and poultry, it can also be used to protect exotic or aquatic animals. The objective is to contribute to the replacement of specimens that have died (naturally or by sacrifice), suffered injuries, been lost or stolen.
How it works?
Livestock can represent a huge investment, especially with breeding animals, which can be extremely valuable.
They can also be stolen or wander to neighboring farms, making it difficult to retrieve them. All of these potential events create risks that farmers can choose to mitigate by taking out a livestock insurance policy. The letter offers payment in the event of any of the hazards identified in the coverage.
To receive the benefit, homeowners must provide documentation that proves the circumstances of the loss, such as a police report of theft or a veterinary certificate related to an unexpected death.
As with other insurance, pet insurance coverage may not go into effect immediately, with a waiting period for payments, two important things to consider when comparing policy purchases and considering coverage options.
What are its main features?
To know if it is worth taking out insurance for livestock, it is very important to know its main characteristics. Look!
Protection under an agricultural policy
Similar to home insurance, this modality covers animals individually or in a herd. Animals are covered if they are on the insured premises, but not while they are away from your property.
Animals such as chickens or other birds have special coverage as they fall into a separate category.
Protection from hazards
It is important that the herd is covered in case of serious emergencies such as fire, smoke exposure or explosion. Risk insurance should cover your herd in case of theft or flood, for example. If any animal is hit by a vehicle or dies in a collision with the vehicle transporting it, this is also covered.
Depending on the circumstances, you may consider adding “broad risk” coverage to your policy. This additional clause protects against extreme hazards, such as a rock falling on animals, an attack by predators, lightning or a fatal transport accident, for example.
Animal mortality coverage
Limited animal mortality coverage may reimburse you for animals killed as a result of injury. If you need broader coverage, total animal mortality reimburses those who died from illness or age.
Unfortunately, the herd dies for a variety of reasons, but this form of insurance can help you recoup your losses. Please read the policy rules carefully to find out what circumstances apply in the event of death.
If the herd dies from a pre-existing condition, or if the death is caused by the owner, you are likely not covered. Make sure your animals are healthy because you will need to prove this before renewing your animal mortality coverage.
Price drop protection
If you are a farmer , this form of insurance provides protection against financial losses during the sale of animals. The policy also reimburses you if the spot price index falls below a specified value. For farmers and ranchers who sell sheep, cattle or hogs for slaughter, your investment is protected against major losses.
Protection in the event of a leak
Sometimes animals can stray from your property. This is why livestock insurance is essential if you are concerned about animals escaping and accidentally getting injured or killed as a result of the escape.
In addition, in the case of animals escaping, the insurance covers, for example, if they are shot by a government official, protecting the population from possible dangers. Even if you think your animals are safely confined or that your fence is enough to protect them, you never know when one or more animals in the herd could get lost.
Civil liability coverage for animals
As herd animals can be unpredictable, it is essential to include some form of liability coverage . This protects you from claims for damages, accidents with visitors or employees, as well as events involving your rural property. For example, if a horse kicks an employee or visitor and causes bodily harm, the insurance must cover the expenses.
It also applies to property damage, so if an animal damages someone’s vehicle, you’re covered for the damage. The purpose of animal liability insurance is to avoid costly lawsuits. This added layer of protection will give you a lot of peace of mind.
