Poultry Farm Insurance Policy Information

Poultry Farm Insurance. Poultry farm insurance is just one of the many essential facets of owning and managing your farm. You are overseeing livestock, equipment, housing, staff, and so much more. Poultry is a crucial aspect of the average American diet, with each person in the United States consuming about 220 pounds of red meat and poultry per year.

Chicken is hands down the number one protein in the country. As an essential business in the food supply chain, insurance of the many aspects of your livelihood should be one of your highest priorities.

Poultry farmers raise chickens and turkeys for eggs and meat. Some raise more exotic fowl such as ducks, geese, guinea, ostrich, peacocks, quail or squab. Birds can be raised in confinement or free-range, although free-range fowl are kept indoors during inclement weather and at night due to predators.

Beaks may be trimmed to prevent the birds from aggression or feathering pecking and eating. Feed is provided along with vaccinations to keep the stock healthy until they reach market weight. The farmer either drives the birds or eggs to the processing plant or hires a carrier to transport them.

Many operations raise their own grain to turn into feed. Poultry farms are subject to regulation by the USDA, FDA, and EPA. While the use of antibiotics for poultry has been approved by the FDA since 1951, the practice has generated increased controversy due to concerns about human antibiotic resistance.

All businesses contain inherent risks, and you should protect your business and revenue with an investment into the correct type of insurance that you need. Insurance will be there to make sure your business thrives, regardless of extraordinary circumstances out of your control. Having control over your poultry farm insurance policy coverages is of the utmost importance.

Poultry farm insurance protects your growing facilities, laying houses, egg gathering facilities & service buildings from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked poultry farm insurance questions:

What Is Poultry Farm Insurance?
How Much Does Poultry Farm Insurance Cost?
What's The Difference Between Farm Insurance & Homeowner's Policies?
What Type Of Poultry Farm Insurance Do I Need?
What Does Poultry Farm Insurance Cover & Pay For?

What Is Poultry Farm Insurance?

Poultry farm insurance is a type of insurance coverage designed specifically for farmers who raise chickens, turkeys, or other poultry.

It provides financial protection against losses caused by events such as disease outbreaks, natural disasters, theft, and other unexpected events. The coverage typically includes protection for the poultry, the building, and the equipment used on the farm. It may also provide liability coverage for accidents or injury to employees or visitors.

The goal of poultry farm insurance is to help farmers minimize their financial losses and maintain the stability of their business operations in the face of unexpected challenges.

How Much Does Poultry Farm Insurance Cost?

The average price of a standard Poultry Farm Insurance policy for small farms and agribusinesses ranges from $67 to $89 per month based on location, number of birds, poultry houses and more.

What's The Difference Between Farm Insurance & Homeowner's Policies?

It is essential to distinguish between personal property and farm property as homeowners' policies do not cover farm equipment. Your agent may be able to provide both, but insuring anything in the revenue pathway from your farm should be done with a separate poultry farm insurance policy.

Itemizing farm equipment such as ladders, hoses, and power washers will mitigate any risks associated with damage or loss.

Ensuring that your business assets are covered for the wide variety of incidents that can happen on any poultry farm is critical to your success. Knowing you have a backup plan in these events can ensure your peace of mind.

It is vital to go through each step of your policy with your agent to identify gaps in coverage that can impact your business and its revenues.

We recommend listing several things that you have been exposed to over the run of your farming experience and asking if those events will be covered under the policy you currently have. For example:

What if a lightning strike causes a fire and renders a building useless?
Will the loss of animals be covered?
Will the structure be covered?
What about the loss of revenue associated with the lightning strike?
What if a roof collapses due to heavy ice or snow?
What if the compressor on your cooling equipment breaks down during a heatwave?

Come up with pointed scenarios and make sure there are no gaps in the coverage you need to keep your family business running the way you foresee, even when unforeseeable events may occur.

What Type Of Poultry Farm Insurance Do I Need?

Although a poultry farm insurance policy is a good place to start when considering protecting your farm, there are other optional farm and ranch insurance coverage types to consider. Your commercial farm insurance agent might recommend some or all of the following:

Workman's Compensation and Employee Liability Insurance

If you employ staff to help with your poultry farm, you must carry workman's comp in virtually every state. If any of your team is injured while on the job, workers comp kicks an and pays for medical care, loss of income and even death.

General Liability Insurance

This will protect you from third party incidents of bodily injury or property damage which can happen on or off your farm./p>

Equipment Breakdown

Protecting the equipment that allows you to stream revenue is critical. What happens your equipment stops working the way you need it to? Will you be covered if a fire destroys your barn or even your precious livestock?

Equipment breakdown coverage can help protect your ventilation and other poultry house equipment. Asking your broker when your policy begins coverage and how you can protect these aspects of your livelihood will be crucial in any of these events.

Theft Coverage

Yes, people steal chickens! Your policy should take into account what would happen in the theft of any of your property, including your animals.

Loss Of Income

Part of a commercial farm property insurance, this coverage can protect you from the type of event where you incur a proportionate loss of revenue to your business. Everything from weather events, fire, or machinery breakdowns can inhibit the revenue stream you rely on.

These are just a few if the poultry farm insurance coverages you should consider. You might need more or less based on your farming operations.

Poultry Farmer's Risks & Exposures

Premises liability exposure is moderate. FDA inspectors and veterinarians regularly visit the premises. Poultry farms may be visited by school-age children and other tour groups who can trip and fall on uneven walking surfaces or housekeeping hazards.

Visitors may be allowed to handle chicks, resulting in pecks or scratches. Visitors should be accompanied by an employee. Restricted areas should be secured to keep visitors from straying into operational areas.

All exits should be adequately marked. The poultry 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 eggs such as bird flu, E. coli, and salmonella and passage of that disease to consumers. Effective procedures are required to ensure that vaccinations are up to date on each bird, that birds with communicable diseases are not sent to a processor, and that the rodent population is controlled.

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, storage and disposal of fowl waste, and motor vehicle fuel storage tanks. Larger operations or those raising poultry in confined settings may have on-site waste collection pits that produce toxins hazardous to humans and other animals.

Drugs, needles, and syringes used to administer medications are considered biohazardous waste and must be disposed of properly. Shipments of waste 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 poultry that can peck or scratch an employee. Roosters and toms can be territorial. Workers can cut themselves or sever fingers during the debeaking process. Training, supervision, and communication are 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 and organic dust can lead to respiratory issues. Workers can suffocate in confined spaces such as grain bins, tanks, waste containment areas or silos.

Respiratory equipment and safety lines should be used. Injuries can result from loading and unloading poultry from vehicles. Employees can pick up communicable diseases from working with poultry.

Property exposures are high due to numerous ignition sources, such as heaters, cooling equipment, and electrical fixtures combined with combustible materials such as animal feed and bedding, oils, and motor vehicle fuels. The egg producing farms will have higher exposures because of the egg assembly lines.

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.

All farms will keep their hatcheries, young chicken and mature chicken barns separate to control disease. If poultry are caged at all times, significant waste occurs that must be removed. This waste can spontaneously combust if not properly stored and ventilated. Lightning may strike buildings unprotected by rods and GFIs, and severe winds and tornados may destroy property in certain geographical areas.

Poultry 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 birds. Fire extinguishers should be well distributed. Automatic fire detection and suppression systems should be considered, especially in larger operations. Smoking should be prohibited.

Poultry farms may be a target for vandalism or demonstrations. Adequate security should be provided. Business income and extra expense may be high after a loss due to the unavailability of backup facilities.

Equipment breakdown exposure can be high due to the lighting and heating equipment used for maintaining an optimal environment for hatching eggs. All machinery and equipment must be regularly inspected and maintained.

Crime exposures are from employee dishonesty and theft but are relatively minor if there are no retail or delivery operations. Pre-employment 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 poultry may be targeted by thieves.

Inland marine exposures include accounts receivable if the farm bills customers, computers, goods in transit, livestock, mobile equipment, and valuable papers and records for pedigree information, records needed to substantiate FDA requirements, product information that may be needed in case of a recall, and veterinary information.

Goods in transit coverage will be needed if birds are transported. Poultry carriers are bulky and may overturn. Mobile equipment is common for cleaning poultry houses and moving the birds. A wide range of farm machinery may be needed if the operation grows its own feed grain.

Commercial auto exposures may be limited to hired and non-owned if carriers or processors transport the poultry to processing centers. If the farm transports its own birds, the exposure increases. Drivers must be trained in handling the sway of poultry trailers. Drivers must have appropriate licenses and acceptable MVRs. All vehicles must be well maintained with records kept.

What Does Poultry Farm Insurance Cover & Pay For?

Poultry farms, like any other business, can be the subject of a lawsuit for various reasons. Here are some potential scenarios where poultry farms might face legal action, and how insurance can help protect them:

1. Employee Injury: Working in a poultry farm can be hazardous due to the nature of the tasks involved, such as handling heavy equipment and exposure to potentially harmful substances. If an employee is injured on the job, they may sue the farm for damages. Workers' compensation insurance can help in this situation. It is designed to cover the cost of medical expenses and lost wages for injured workers, protecting the farm from potential lawsuits related to workplace injuries.

2. Product Liability: If a consumer gets sick from consuming poultry products due to contamination or improper handling, they may file a lawsuit against the farm. Product liability insurance can help cover the costs associated with these types of lawsuits. This insurance can cover legal fees, court costs, and any settlements or judgments awarded in such cases.

3. Environmental Damage: Poultry farms can potentially cause environmental damage, such as water contamination from waste runoff. If a neighboring property or public water source is affected, the farm could be sued for cleanup costs and damages. Environmental liability insurance can help cover these costs, protecting the farm from potentially high expenses related to environmental cleanup and legal fees.

4. Animal Welfare Issues: Poultry farms can also face lawsuits related to animal welfare. For example, if the farm is accused of inhumane treatment of its birds, it could face legal action. Animal welfare liability insurance, although not common, can cover legal defense costs and any damages awarded in these cases.

5. Property Damage: Poultry farms have significant investments in buildings, equipment, and vehicles. If these assets are damaged due to events like fire, storms, or vandalism, the farm could face significant financial losses. Property insurance can help cover the repair or replacement costs of these assets, mitigating the financial impact of such events.

6. Business Interruption: In the event of a disaster or other unforeseen circumstance that halts operations, a poultry farm could lose significant income. A lawsuit could arise if the interruption affects contracts or supply agreements. Business interruption insurance can cover lost income during these periods, helping the farm to meet its financial obligations.

Insurance serves as a critical risk management tool for poultry farms, offering financial protection against a wide range of potential lawsuits. Each of these insurance types can help a farm navigate through legal issues, covering defense costs and potential settlements or judgments. As such, maintaining adequate insurance coverage is essential for the financial stability and ongoing operations of a poultry farm.