Livestock And Cattle Insurance Hawaii Policy Information
Livestock And Cattle Insurance Hawaii. If you own a business that raises, breeds, or houses livestock, you stand to lose money if any of those animals succumb to disease or injury, or suffer death as a result of an accident or illness. Protecting yourself against this type of loss to your valuable assets can be achieved by purchasing livestock insurance.
Beef farmers raise cattle for their meat. Calves are generally bred on-site using a bull or artificial insemination. Some farmers board feeder calves owned by others. The calves may graze in pastures when available but in drought or severe weather conditions may be kept in paddocks.
They feed on grass, hay and other approved feed and supplements until they reach market weight. At that time, the farmer either drives the animals to the processing plant or hires a carrier to transport them. Many operations raise their own grain to turn into feed for their livestock.
Cattle farms are subject to regulation by the USDA, FDA, and EPA.
This type of insurance is used to cover range animals such as cattle, sheep, horses, pigs, etc. Depending on what kind of animal your farm maintains, it can also include stock like emu, bison, ostrich, and alpacas. Regardless of the livestock you raise, show, or distribute, ensuring you are covered with livestock and cattle insurance Hawaii if you have a loss is vital to your livelihood.
Livestock insurance varies depending on the type of business, number of animals, and the size of your farm. Other factors include the kind of animals you own and the business purpose they provide on your farm.
For example, a large HI farm with several livestock varieties will require a different type of policy than a small operation that owns only a small number of cattle.
Livestock and cattle insurance Hawaii protects your farm and investment in cows, bulls, swine, goats, lambs and sheep - with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
What Type Of Livestock And Cattle Insurance Do Smaller Farms Need?
A small or midsize operation may be insured through a farm policy, a hybrid type of coverage that acts as a combination of commercial coverage and a homeowner policy. This policy would cover all aspects of the farm, incorporating personal assets such as your home and its contents.
The commercial element would cover the farm assets and those things associated in the pathway for the business side of it. This would include such things on your farm as your barns, all animal structures, machinery, and business property like hay and grain.
What Type Of Livestock And Cattle Insurance Do Larger Farming Operations Need?
Large operations can utilize varying forms of coverage on a net policy based on herd and operation size. For example, with this type of coverage, you can schedule the insurance to cover an entire herd of cattle at one rate.
However, if you have a higher value partition of your livestock, say for breeding purposes, you should have those declared and scheduled individually. The risk of their loss would have a higher financial impact.
It should be noted that animals such as chickens and other types of birds are not considered livestock. They would have to be insured separately under a poultry farm policy.
A livestock and cattle insurance Hawaii policy would cover your animals during their time on your premises, or off your premises, as long as they are in transit under your management.
Livestock is typically not covered if you are using a 3rd party carrier to move the animals. Livestock and cattle insurance Hawaii coverage may also end when at a public stockyard for sale, and at a slaughterhouse.
What Does Livestock And Cattle Insurance Cover?
Most livestock and cattle insurance Hawaii policies protect you broadly from loss and damages to your animals. This coverage would include death, as policies typically include mortality insurance.
More specifically, these events may include:
- Animal Attacks
- Fire and lightning
- Livestock Theft
- Sinkholes and earthquake
- Transportation accidents
- Vehicular strikes of livestock
There are three ways to cover your animals:
- Individual Coverage - This livestock and cattle insurance Hawaii usually covers high-value animals on an individual basis. The animals are listed with an identifying marker or description, like an ear tag, and they are covered for a specified dollar amount.
- Blanket Coverage - This type of livestock policy allows you to insure all your farm property for a predetermined value. It can include structures, equipment, tools and cattle and livestock.
- Herd Coverage - This is the simplest type of insurance for livestock. This coverage allows you to insure a specific number of animals, for example, 180 beef cattle or 300 pigs.
What Types Of Animals Are Covered Under Livestock Insurance?
Livestock and cattle insurance Hawaii typically protects the following kinds of animals:
Please note this is not an exhaustive list.
What Types Of Animal Mortality Insurance Policies Are Available?
There are two types of mortality coverage typically offered to livestock farm owners, limited and full mortality coverage:
Limited mortality coverage would not see a benefit from the death of your livestock from conditions such as disease or other natural causes.
Full mortality coverage would protect the farm owner in the event of death from natural causes or accidental, as long as the nature of the death is not expressly excluded in the policy itself. This often includes injuries, theft, and loss of use protections.
During the application process for full mortality insurance, a document of health-filled out by a certified veterinarian must be provided to the insurance company to show that the animal is in healthy shape.
It should be noted; if selling any animal covered by these policies, they are non-transferable to the new owner.
Hawaii Livestock And Cattle Farmer's Risks & Exposures
Premises liability exposures is moderate. FDA inspectors and veterinarians regularly visit the premises. Livestock farms are often visited by school-age children and other tour groups who can trip and fall on uneven walking surfaces or housekeeping hazards.
Visitors should always be accompanied by an employee. Restricted areas should be secured to keep visitors from straying into operational areas. Bulls should be securely confined when not servicing cows. Fences should be well maintained to prevent animals from straying, especially onto roads.
All exits should be adequately marked. Manure lagoons should be fenced with warning signs. The farm may present an attractive nuisance to trespassers. There must be adequate security to prevent unauthorized entry.
Products liability exposures are moderate due to the potential for contamination of meat products and passage of disease to consumers. Effective procedures are required to ensure that vaccinations are up to date on each animal, and that animals with communicable diseases are not sent to a processor.
Controls must be in place to prevent contamination from exposure to chemicals such as insecticides and pesticides. There should be an effective working recall program that can be activated immediately.
Environmental impairment liability exposures are high due to the potential for air, land, or water pollution from the use of agricultural chemicals and pesticides application, disposal of animal waste, and motor vehicle fuel storage tanks.
Larger operations or those raising animals in confined settings may have on-site manure lagoons that produce toxins including ammonia, carbon dioxide, hydrogen sulfide, and methane that are hazardous to humans and animals.
Drugs, needles, and syringes used to administer medications or to artificially inseminate animals are considered biohazardous waste and must be disposed of properly. Shipments of manure may result in off-premises pollution in the event of an accident or spill. If there are underground storage tanks, a UST policy will be required.
Workers compensation exposures are high due to the use of equipment and interaction with unpredictable livestock that can bite, kick, suffocate or trample an employee. Working with bulls is particularly hazardous as they can be very territorial.
Training, supervision, and communication is important in maintaining a safe work environment. Slips, trips, falls, back injuries from lifting, foreign objects in the eye, and muscle strains are common.
Exposure to farm chemicals, noxious odors from animal waste, and organic dust can lead to respiratory issues. Workers can suffocate in confined spaces such as grain bins, tanks, silos, and manure lagoons.
Respiratory equipment and safety lines should be used in grain bins and manure pits. Injuries can result from loading and unloading animals from trailers. Employees can pick up communicable diseases from working with animals.
Property exposures are high because of numerous ignition sources, such as heaters, electrical fixtures and equipment combined with combustible materials such as hay, straw, animal feed and bedding, oils, and motor vehicle fuels. All machinery and equipment must be inspected and maintained regularly to avoid wear and tear or overheating losses.
Wiring must be up to date and of sufficient capacity. All machinery should be grounded to prevent static buildup and discharge. Electrical fixtures should be dust and moisture proof. There should be ventilation systems to prevent accumulations of gases from decomposing animal wastes that can result in explosion. Lightning may strike buildings unprotected by rods and GFIs, and severe winds and tornados may destroy property in certain geographical areas.
Cattle farms are in rural areas where fire response time may be slow and a water supply to douse a fire may be undependable. Auxiliary fire-fighting procedures should be in place, including evacuation of the animals.
Fire extinguishers should be well distributed. Automatic fire detection and suppression systems should be considered, especially in larger operations. Smoking should be prohibited. When cattle graze at a distance from the main house, cattle thieves may steal the animals, so fences must be secured, and the herd kept under surveillance.
Crime exposures are from employee dishonesty and theft but are relatively minor if there are no retail or delivery operations. Pre-employments checks should be conducted for employees. Inventory controls should be in place. Money-handling responsibilities should be separated, with no employee handling both receivables and disbursements. A money and securities exposure exists if there are retail operations on premises or if products are delivered to customers. Some prescription medications for animals may be targeted by thieves.
Inland marine exposures include accounts receivable if the farm bills customers, computers, livestock, mobile equipment, and valuable papers and records. Calves are small and may be attacked by predators. Mobile equipment is used for cleaning barns and moving the animals.
A wide range of farm machinery may be needed if the operation grows its own feed grain. Valuable papers and records include pedigree information, records needed to substantiate FDA Grade A requirements, product information that may be needed in case of a recall, and veterinary records.
High-value animals may be candidates for animal mortality insurance. Goods in transit coverage will be needed if bulk milk, finished products, semen or embryo are transported. Animal carriers are bulky and may overturn.
Commercial auto exposures may be limited to hired and non-owned if carriers or processors transport the calves to processing centers. If the farm transports its own animals, the exposure increases.
Drivers must have appropriate licenses and acceptable MVRs. Drivers must be trained in handling the sway of cattle trailers. All vehicles must be well maintained with records kept at a central location.
Livestock And Cattle Insurance Hawaii - The Bottom Line
Your livestock is vital to you and your business. Whether large or small, your operation should factor in all the livestock and cattle insurance Hawaii options at your hands.
Assessing risks and mitigating events detrimental to your operation can be managed with the right types of coverage for you. Protecting your livelihood will add peace of mind and focus on what matters the most to your animals.
Hawaii Economic Data, Regulations And Limits On Commercial Insurance
Location is one of the most vital factors that prospective business owners need to take into consideration when they are thinking about establishing an operation. You can have the best possible products and offer the most exceptional services, but if the location doesn't offer a market that can benefit from those goods and services, your business will have difficulty thriving.
As such, if you are an entrepreneur who has set your sights on Hawaii for the headquarters of your business or a new division of an already existing corporation, it's a good idea to familiarize yourself with the state's economic data. It's also important to understand what type of commercial insurance you will need to invest in to protect yourself, your employees, your vendors, and the clients you serve.
Below, we provide a brief overview of important economic data and the commercial insurance requirements for business owners in the Aloha State.
Economic Trends For Business Owners In Hawaii
A state's unemployment rate is a good indicator of the overall economy of the region. It indicates that there are enough jobs available to support the economy, which is a direct reflection of the success of businesses in the state. As of 2019, the Bureau of Labor Statistics indicated that the unemployment rate in Hawaii was 2.6%, 0.8% lower than the national average of 3.4% from the same timeframe. This rate has also decreased throughout 2019, as it was 2.8% in July of 2019.
As with most states, the best locations to start a business in the state of Hawaii include urban areas and the suburban regions that surround them. The top cities for business owners in HI include:
- Pearl City
While several industries do well in Hawaii, certain sectors thrive. Tourism has long been the leading industry in the state, as people from around the globe flock to Hawaii each year.
Agriculture is also a booming industry here; the state is the second largest producer of sugar can in the U.S. Defense is also a key sector here, as all branches off the armed forces have bases located in the state. Another industry that also thrives here is manufacturing; specifically the manufacturing of cotton-based goods, such as clothing.
Commercial Insurance Requirements In Hawaii
The Hawaii Department of Commerce and Consumer Affairs regulates insurance in HI. Hawaii mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Hawaii requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
Hawaii also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Agribusiness Insurance
Learn about small business agribusiness insurance - a type of commercial insurance protects farmers against loss of, or damage to crops or livestock.
- Insurance Farming Terms Glossary
- Aquaculture Fish Farm
- Commercial Fishermen
- Dairy Farm
- Equine & Horse Farm
- Farm And Ranch
- Farm Equipment Dealers
- Farm Labor Contractors
- Livestock & Cattle
- Mushroom Farms
- Nursery And Greenhouse
- Nut Farm
- Orchards & Groves
- Poultry Farm
- Sheep & Goat Farm
- Swine, Hog & Pig Farm
- Tobacco Farm
- What Are Farm And Ranch Insurance Endorsements?
Farming is, and has always been a tough business. There are many uncontrollable factors for farmers to deal with - like the weather, vermin, or other natural catastrophes. Any of these can destroy cash crops, such as corn, cotton, soybeans, and wheat, and put the farmer in a very bad financial situation.
Insurance for agribusiness falls into three general categories:
The first is property insurance on the buildings and the usually substantial amount of business personal property made up of machinery, livestock, equipment and other stock.
The second is liability for both premises and products.
The last is protection for worker injuries. Commercial auto insurance should be written if the operation owns vehicles and especially if it transports its own products.
There are a wide variety of agribusiness insurance options that are available to farmers. These policies allow them to to receive compensation in the event of a poor growing season, dropping prices, cattle disease or catastrophic natural event.
Loss of crops or livestock can financially ruin an agribusiness operation. The crop insurance agrees to indemnify the farmer, rancher or grower against losses which occur during the crop year. Losses have to be caused by things which are unavoidable or beyond the farmer's control - like a drought, freeze and/or disease.
Some policies offer coverage due to adverse weather events such as the inability to plant due to excess moisture or losses due to the quality of the crop.
Minimum recommended small business insurance coverage: Buildings, Business Personal Property, Crop Insurance, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Mobile Equipment, Valuable Papers and Records, General Liability, Environmental Impairment, Umbrella, Business Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Business Income and Extra Expense, Earthquake, Equipment Breakdown, Farm Owners, Flood, Computer Fraud, Employee Dishonesty, Forgery, Money and Securities, Cyber Liability, Employee Benefits, Employment-related Practices Liability, Product Recall, Underground Storage Tank, Stop Gap Liability and Unmanned Aerial Vehicles (UAV) (Drones).
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