Sheep And Goat Farm Insurance Policy Information
Sheep And Goat Farm Insurance. Livestock plays a vital role in the everyday lives of countless individuals. Not only does livestock provide nourishment, but it's also the source of several essential products.
Of all the different types of livestock, sheep and goats are extremely important. Goats are a source of meat and milk, while sheep are a source of wool.
Sheep and goat farmers raise animals to produce milk, meat, and/or wool. Lanolin may be used in manufacturing cosmetics, while skin may be used to make leather or parchment. The animals graze in pastures and are fed supplemental silage.
Milk can be extracted by hand or using automated milking machines. The milk can be sent to an aggregator for combining with other milk before processed and packaged, or it can be processed, packaged, and marketed directly to customers. To keep milk production high, animals must be bred regularly, which also maintains a steady supply of replacements for milking.
Animals grown for their meat are kept 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.
Sheep are sheared annually, and the fleeces sold as wool. Angora goats are sheered for their mohair fleece while other goats provide cashmere and other fine fiber. Sheep and goat farms are subject to regulation by the USDA, FDA, and EPA.
Being a sheep and goat farmer is certainly commendable, as you provide the general public with many of the products that they need; however, there are certain risks that are associated with operating a farm.
In order to protect yourself from unexpected events - and the exorbitant costs that could be associated with them - investing in the right type of sheep and goat farm insurance coverage is very important.
Sheep and goat farm insurance protects livestock business 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 goat and sheep farm insurance questions:
- What Is Sheep And Goat Farm Insurance?
- How Much Does Sheep And Goat Farm Insurance Cost?
- Why Do Sheep And Goat Farmers Need Insurance?
- What Type Of Insurance Do Sheep And Goat Farmers Need?
- What Does Sheep And Goat Farm Insurance Cover & Pay For?
What Is Sheep And Goat Farm Insurance?
Sheep and goat farm insurance is a type of insurance policy specifically designed to provide coverage for farmers who raise and care for sheep and/or goats.
This type of insurance typically covers financial losses due to death, theft, injury, illness, and other risks associated with raising these animals. Coverage may also include protection for the farm buildings and equipment used to care for the animals, as well as liability protection in case of accidents or injuries on the farm.
The specific terms and conditions of the policy will vary depending on the insurance provider and the specific needs of the farm.
How Much Does Sheep And Goat Farm Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small goat and sheep farm agribusinesses ranges from $67 to $99 per month based on location, number of sheep or goats, claims history and more.
Why Do Sheep And Goat Farmers Need Insurance?
Like others businesses in any other industry, there are certain risks associated with operating a sheep goat farm. Some of those risks are similar to the risks that other business owners face; however, some are unique to your particular industry.
For example, a third-party could file a lawsuit against you after suffering an injury while they were on your farm, your building and equipment could be damaged in an act of nature, or your livestock could become unexpectedly sick or perish.
As the proprietor of your sheep and goat farm, you are responsible for anything that goes wrong. Should anything unexpected arise, you're liable for related expenses; the cost of which, of course, could be extensive.
If you're properly insured, instead of paying those costs out of your own pocket, your insurance carrier would cover them for you; therefore, sheep and goat farm insurance can help to save you from serious financial losses.
It also verifies that you are compliant with local laws, as goat and sheep farmers are legally required to carry certain types of coverage.
What Type Of Insurance Do Sheep And Goat Farmers Need?
There are several different types of sheep and goat farm insurance coverage that goat and sheep farmers require; however, coverage requirements may vary from farmer to farmer, as it really depends on the specific details of your farm.
Examples of some of the key coverages you'll need, however, include:
- Commercial General Liability: To protect yourself against third-party property damage and personal injury claims, you'll need commercial general liability insurance. This policy covers any lawsuits that someone who is not associated with your farm may make against in you the event that they suffered an injury on your property or claim that you or one of your employees damaged their property.
- Commercial Property: You'll also need to carry commercial property insurance, which protects the buildings on your farm and the content within them from acts of peril, theft, and vandalism. If a fire were to break out or someone were to break into a building and steal equipment, this policy would help to cover the losses.
- Livestock Insurance: Livestock can become infected with illnesses or perish unexpectedly. If that happens, the cost of veterinary care or replacing your sheep or goats could be exorbitant. Livestock insurance would help to cover the costs that are associated with damage to your animals.
- Workers' Compensation: You'll also need to carry a workers' compensation policy to protect your employees. In the event that they are injured on the job or develop a work-related illness, this coverage would help to pay for any medical care that employees would require, as well as compensate them for any lost wages if they were unable to work as a result of an illness or injury.
- Equipment Breakdown: You rely on a lot of equipment to keep your farm running, and repairing or replacing that equipment can be quite costly. With equipment breakdown insurance, however, instead of paying those exorbitant costs yourself, your insurer would cover them for you.
- Business Interruption: If you have to unexpectedly cease operations on your farm, this insurance would help to cover any income you would lose until you can reopen for business.
These policies are just a few examples of the type of sheep and goat farm insurance you'll need to have operating a livestock business.
Goat And Sheep Farms' Risks & Exposures
Premises liability exposures are limited. FDA inspectors and veterinarians regularly visit the premises. Sheep and goat farms may be visited by school-age children and other tour groups who can trip and fall on uneven walking surfaces or housekeeping hazards or be injured in interactions with animals. Visitors should be accompanied by an employee.
Restricted areas should be secured to keep visitors from straying into operational areas.
Male animals should be securely confined when visitors are present. Fences should be well maintained to prevent animals from straying, especially onto roads.
Retail operations should have excellent housekeeping to prevent slips and falls. All exits should be adequately marked. 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, spoilage and foreign objects in the milk, or passage of disease from meat products to consumers. Raw milk is often delivered directly to the consumer. All milk should be tested before it is delivered to customers or milk processors.
Effective procedures are required to ensure sanitary working and processing conditions, that vaccinations are up to date for all animals, and that diseased animals are not sent to a processor. The workplace must meet all FDA specifications and be arranged so that foreign substances do not enter processing areas.
A testing laboratory should be on-site to perform quality control. Tanker cleaning must be done on a continuous basis and fully documented. Controls must be in place to prevent contamination from exposure to chemicals such as insecticides and pesticides.
Stock dating and rotation are crucial factors. An effective working recall program that can be activated immediately must be established.
Environmental impairment liability exposures are moderate 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.
Drugs, needles, and syringes used to administer medications are considered biohazardous waste and must be disposed of properly. When 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 animals that can bite, kick, or suffocate an employee. Male animals may be territorial. Training, supervision, and communication are important in maintaining a safe work environment.
Slips, trips, falls, back injuries, foreign objects in the eye, and muscle strains are common. Shearers can cut themselves while removing fleeces from animals.
Exposure to farm chemicals, noxious odors from animal waste, and organic dust can lead to respiratory issues. Injuries can result from loading and unloading animals from vehicles. Employees can pick up communicable diseases from working with animals.
Property exposures in the sheep and goat barns are limited if they are unheated and maintained only as shelter from weather, predators and for birthing. If used for shearing and/or milking, the exposure increases. All equipment must be inspected and maintained regularly to avoid wear and tear or overheating.
Wiring must be up to date and of sufficient capacity. Electrical fixtures should be dust and moisture proof. Fleece and fibers are considered fire resistive.
Dairy products must meet extremely high sterility requirements, with most processes taking place in closed containers to prevent contamination. This sterile environment helps control most fire exposures.
However, if a small fire does begin, a total loss could occur as state, local, or federal regulations may require the disposal of major portions of stock and raw materials that have been exposed to fire, smoke, heat, or water. Spoilage losses can be severe if the refrigeration and cooling equipment malfunctions or loses power. Controls, such as alarms, must be in place to warn if power is out or if temperature rises in coolers and freezers.
Emergency backup systems, such as emergency generators, should provide power if an outage or shutdown occurs. Lightning may strike buildings unprotected by rods and Ground Fault Interrupters (GFIs), and severe winds and tornados may destroy property in certain geographical areas. Sheep and goat 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. Sheep and goat farms may be a target for vandalism. Business income and extra expense may be high after a loss due to the unavailability of backup facilities.
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 animals may be targeted by thieves.
Inland marine exposures include accounts receivable if the farm bills customers, computers (which may include controls for automated milking equipment), livestock, mobile equipment, and valuable papers and records. Sheep are docile and are subject to attack by predators. Mobile equipment is common 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 requirements, product information that may be needed in case of a recall, and veterinary information.
Goods in transit coverage will be needed if bulk milk, animals, or wool fleeces are transported. Bulk milk must be transported in tankers used only for milk that are sanitized after each use.
Bulk milk tankers and animal carriers are bulky, and overturns may result in a total loss. Refrigerated trucks used to transport dairy products can malfunction, resulting in spoilage.
Business auto exposures may be limited to hired and non-owned if carriers or processors transport the milk or animals to processing centers. If the farm delivers its own products or transports animals, the exposure increases.
Drivers must have appropriate licenses and acceptable MVRs. Drivers must be trained in handling the sway of animal trailers. All vehicles must be well maintained with records kept.
What Does Sheep And Goat Farm Insurance Cover & Pay For?
Sheep and goat farms can face a variety of legal challenges, many of which could potentially result in lawsuits. It's important to note that the specifics can vary based on the farm's location, local laws and regulations, and the specific circumstances of each case. However, the following are some of the common reasons these farms might be sued, and how insurance can provide protection.
1. Injury on the Farm: One common reason for lawsuits is injuries occurring on the farm. This could be a worker, a visitor, or even a trespasser who gets hurt. For instance, a farmhand might be injured by equipment or an animal, or a visitor might slip and fall. In these cases, General Liability Insurance could be helpful. This insurance covers bodily injuries and property damage that your farm may be legally responsible for. It could help cover the legal fees, medical payments, and any damages awarded in a lawsuit.
2. Product Liability: Farms can also face legal action if their products cause harm. If a consumer becomes ill after consuming the farm's milk or meat, for instance, they might sue the farm. In such a scenario, Product Liability Insurance would provide protection. It can help cover the costs of legal defense, as well as any settlements or judgements related to the product liability claim.
3. Environmental Damage: If a farm's activities lead to environmental damage, like water contamination due to improper disposal of animal waste, this could also lead to legal challenges. Environmental Liability Insurance could be beneficial in such cases. This insurance covers claims for clean-up, as well as third-party compensation for bodily injury and property damage due to pollution conditions.
4. Employment Disputes: Employment-related issues can also result in lawsuits. An employee could sue the farm for wrongful termination, discrimination, or wage disputes, for instance. Employment Practices Liability Insurance (EPLI) can cover defense costs and damages related to a variety of employment-related claims.
5. Damage to Property: If a farm's operations accidentally cause damage to someone else's property, the farm could be sued. General Liability Insurance would cover such incidents, paying for the cost of legal defense and any damages awarded.
6. Animal Health and Welfare: If a farm is accused of mistreating its animals or failing to provide them with appropriate care, this could lead to legal action. In such cases, Animal Mortality Insurance can provide coverage. This kind of insurance typically covers the value of the animals in the event of their death due to a variety of causes, and it may also provide coverage for legal costs associated with lawsuits over animal welfare.
It's important for every farm to work with an experienced insurance agent or broker to ensure they have the right coverage to protect against potential lawsuits. The above examples are general, and the specifics of each farm's risk and insurance needs may vary.
Commercial Insurance And Business Industry Classification
- SIC CODE: 0214 Sheep and Goats
- NAICS CODE: 112410 Sheep Farming, 112420 Goat Farming
- Suggested ISO Farm and Commercial General Liability Code(s): 01518, 01519, 01618, 01619, 01718, 01719, 01818, 01819
- Suggested Workers Compensation Code(s): 0083 Farm - Cattle or Livestock Raising NOC & Drivers
0214: Sheep and Goats
Division A: Agriculture, Forestry, And Fishing | Major Group 02: Agriculture Production Livestock And Animal Specialties | Industry Group 021: Livestock, Except Dairy And Poultry
0214 Sheep and Goats: Establishments primarily engaged in the production of sheep, lambs, goats, goats'milk, wool, and mohair, including the operation of lamb feedlots, on their own account or on a contract or fee basis.
- Feedlots, lamb
- Goat farms
- Goats' milk production
- Mohair production
- Sheep feeding farms and ranches
- Sheep raising farms and ranches
- Wool production
Sheep And Goat Farm Insurance - The Bottom Line
In order to find out exactly what kind of sheep and goat farm insurance coverage you'll need to fully protect your farm, speak with a reputable broker who specializes in commercial farming insurance.
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
- Specialty Farm Risks
The agribusiness industry is a vital sector of the global economy, providing food, fiber, and other essential products to people around the world. However, it is also a complex and risky industry, with many potential sources of loss and damage. This is why the agribusiness industry needs commercial insurance.
One major risk in the agribusiness industry is natural disasters, such as floods, droughts, and hurricanes. These events can devastate crops and livestock, leading to significant financial losses for farmers and other agribusiness owners. Business insurance can help protect against these losses, providing a financial cushion to help businesses recover and continue operating.
Another risk in the agribusiness industry is the potential for accidents or injuries on the farm. Farming can be a dangerous occupation, and accidents can occur while working with heavy machinery or handling animals. Insurance can help cover the costs of medical treatment, lost wages, and other expenses related to these accidents.
In addition to these risks, the agribusiness industry is subject to various legal and regulatory requirements, such as food safety standards and environmental regulations. Noncompliance with these requirements can result in costly fines and legal action. Insurance can help cover the costs of legal fees and settlements, protecting businesses from financial ruin.
Overall, the agribusiness industry needs insurance to protect against the various risks and challenges it faces. Without commercial insurance, businesses in this industry would be vulnerable to financial losses that could threaten their survival. By investing in insurance, agribusiness owners can safeguard their businesses and ensure their continued success.
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).