Swine Hog And Pig Farm Insurance Policy Information
Swine Hog And Pig Farm Insurance. Raising swine, pigs, and hogs to sell can be a lucrative, but risky business. The livestock industry can be unpredictable and filled with unknowns.
Swine farmers raise pigs primarily for meat and lard, although some also supply skin for making leather goods. Pigs are generally bred on-site using boars or artificial insemination.
Sows produce an average litter of twelve piglets which can be raised in confinement or free-range with indoor housing available during inclement weather and at night due to predators. While pigs love to forage, pastureland does not provide adequate quantities of food, so they are fed grains, by-products, and other nutrients 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 animals. Swine farms are subject to regulation by the USDA, FDA, and EPA.
To protect yourself, your business, and the customers you serve from those risks and unknowns, investing in the right type of swine hog and pig farm insurance coverage is an absolute must.
What kind of insurance do swine, pig, and hog farmers need? Below, you'll find a breakdown of the coverages that you'll need to carry.
Swine hog and pig 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 Swine Hog And Pig Farm Insurance?
- How Much Does Swine Hog And Pig Farm Insurance Cost?
- Why Do Swine Hog And Pig Farmers Need Insurance?
- What Type Of Insurance Do Swine Hog And Pig Farmers Need?
- What Does Swine Hog And Pig Farm Insurance Cover & Pay For?
What Is Swine Hog And Pig Farm Insurance?
Swine hog and pig farm insurance is a type of agricultural insurance that provides coverage for losses and damages incurred by hog and pig farmers. The insurance covers various aspects of the farming operation, including but not limited to the hogs and pigs, breeding stock, buildings and structures, feed, and other related assets. The coverage may include protection against death or injury of animals due to disease, accidental injury, theft, and other perils.
The purpose of this insurance is to protect hog and pig farmers against financial losses caused by various risks associated with raising hogs and pigs, such as disease outbreaks, natural disasters, market fluctuations, and other unforeseen events. With this insurance, farmers can mitigate the financial impact of these risks and ensure the continued success and viability of their operation.
It's important to note that the specific coverage offered by swine hog and pig farm insurance may vary by provider and policy, and farmers should carefully review their options and consult with an insurance professional to determine the best coverage for their needs.
How Much Does Swine Hog And Pig Farm Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small swine, pig, and hog farm agribusinesses ranges from $67 to $99 per month based on location, number of swine, claims history and more.
Why Do Swine Hog And Pig Farmers Need Insurance?
Owning and operating any type of business comes with a certain amount of risks. As a swine, pig, and hog farmer, some of the risks that you face are similar to the risks that business owners in other industries face; however, some of those risks are unique to your specific industry. Examples of risks include:
- Third-party lawsuits
- Your employees suffering on-the-job injuries
- Your equipment being damaged or stolen
- Your farm being damaged in a storm or by a fire
- Your livestock being exposed to an illness
Those are just a handful of the hazards you face as a swine, pig, and hog farmer. As the owner and operator of your farm, you are liable for anything that does go wrong, which means you could be looking at unexpected and exorbitant expenses, which is why having the right type of swine hog and pig farm insurance coverage is so important.
If something unexpected does happen and you're properly insured, instead of paying the related costs out of your own pocket, your insurance carrier would cover those expenses for you. In other words, insurance can help to save you from serious financial losses.
It also ensures that your operation is complaint with law, as swine farmers are legally required to carry certain types of insurance coverage.
What Type Of Insurance Do Swine Hog And Pig Farmers Need?
There are numerous types of insurance coverage that a swine farmer may need to carry. The specific types of swine hog and pig farm insurance coverage that you'll need to invest in depend several factors that are unique to your operation; where you are located, the size of your farm, what type of clients you serve, how your livestock is used, and more.
Because coverage requirements vary, it's always a good idea to speak with a reputable agent who specializes in insuring farms so you can be certain that you are fully covered from the unique risks that are associated with your business.
With that said, however, there are certain kinds of coverage that all swine, hog and pig farmers will need. Examples include:
- General Liability: This coverage provides protection against third-party liability claims that are related to property damage and personal injuries. For example, if a third-party were touring your farm and they suffered an injury and filed a lawsuit against you, this type of coverage would help to pay for your legal defense fees, as well as any damages that you may be required to pay.
- Commercial Property: To protect the physical structures on your farm and the contents within them, you'll need commercial property insurance. If one of your buildings goes up in flames, this coverage would pay for any losses, including repairs to your property and anything that would need to be replaced.
- Livestock Insurance: This coverage protects your swine, hogs, and pigs from the unexpected. For example, if they were to unexpectedly contract an illness or perish, this insurance would help to pay for any medical care that they might require or perhaps even cover the cost of purchasing a new animal.
- Workers Compensation: Employers in all industries, including farmers, are responsible for providing their employees with a safe work environment, and if they are harmed on the job, the employer is responsible. Workers' compensation coverage provides your employees with the medical care they need if they are injured while working. It can also compensate lost wages if they are unable to work as a result of their injuries.
These policies are just a few examples of the type of swine hog and pig farm insurance you'll need to have operating a livestock business.
Swine Farmers' Risks & Exposures
Premises liability exposures are limited. FDA inspectors and veterinarians regularly visit the premises. Swine farms are not popular destinations for school groups or agritourism because of the odor.
However, if tours are permitted, visitors should be accompanied by an employee. Restricted areas should be secured to keep visitors from straying into operational areas. Manure lagoons should be fenced with warning signs.
The swine 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, storage and disposal of animal waste, and motor vehicle fuel storage tanks. Swine are generally raised in large numbers in confined quarters.
Automated removal systems pump copious quantities of waste into 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 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 unpredictable livestock that can bite, kick, suffocate, or trample an employee. 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, noxious odors from animal waste, and organic dust can lead to respiratory issues. Workers can suffocate in grain bins and manure lagoons so respiratory equipment and safety lines should be used.
Injuries can result from loading and unloading animals from vehicles. Employees can pick up communicable diseases from working with animals.
Property exposures are high as many swine farmers raise their pigs entirely indoors with numerous ignition sources, such as heaters, electrical fixtures, air conditioning, and automated waste removal 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.
Swine farms are located 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. Swine 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. Employee dishonesty includes theft of the animals, and the temptation rises with the price of pigs. 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, 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 the farm transports swine. Animal carriers are bulky and may overturn. 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.
Commercial auto exposures may be limited to hired and non-owned if carriers or processors transport the swine to processing centers. If the farm transports its own animals, the exposure increases.
Drivers must be trained in handling the sway of swine trailers. Drivers must have appropriate licenses and acceptable MVRs. All vehicles must be well maintained with records kept.
What Does Swine Hog And Pig Farm Insurance Cover & Pay For?
Swine, hog, and pig farms can face a variety of legal challenges due to the nature of their business. Here are some reasons why these farms might be sued and how insurance can help protect them:
1. Environmental Issues: These farms can be sued for environmental damage. This can include contamination of water sources due to improper manure management or the release of noxious gases. If found liable, they could face significant fines and cleanup costs. Environmental liability insurance can protect farms in these situations. This type of insurance can cover the cost of legal defense, cleanup operations, and any fines or penalties assessed.
2. Animal Welfare: If the farm is accused of mistreating animals or not providing adequate care, it could face legal action from animal rights groups or governmental bodies. Animal mortality insurance can provide coverage in the event of a significant loss of livestock due to disease or other covered events. Furthermore, a comprehensive farm liability insurance policy may cover defense costs if the farm faces lawsuits over animal welfare issues.
3. Worker Safety: Farms can be sued for not providing a safe working environment. If a worker is injured on the job, the farm could be held liable. Workers' compensation insurance is a crucial coverage that can protect the farm in these situations. It can cover medical expenses, lost wages, and legal costs if the farm is sued for a work-related injury or illness.
4. Product Liability: If someone becomes ill after consuming a product from the farm, the farm could be held liable. Product liability insurance can cover the legal defense costs, settlement costs, and any awarded damages in these situations. This type of coverage is especially important for farms that sell directly to consumers or retailers.
5. Property Damage: Farms can also be sued if their operations cause damage to someone else's property. For instance, if a pig escapes and causes damage to a neighbor's property, the farm could be held responsible. Farm liability insurance can cover costs related to property damage claims, including legal defense, settlement costs, and damages.
In conclusion, while farms are subject to a variety of potential lawsuits, having the right insurance coverages in place can help protect them financially. It's important for each farm to assess its unique risks and ensure it has adequate coverage to protect against potential legal challenges.
Commercial Insurance And Business Industry Classification
- SIC CODE: 0213 Hogs
- NAICS CODE: 112210 Hog and Pig 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
Division A: Agriculture, Forestry, And Fishing | Major Group 02: Agriculture Production Livestock And Animal Specialties | Industry Group 021: Livestock, Except Dairy And Poultry
0213 Hogs: Establishments primarily engaged in the production or feeding of hogs on their own account or on a contract or fee basis.
- Feedlots, hog
- Hog farms
Swine Hog And Pig Farm Insurance - The Bottom Line
These are just a few of the different types of swine hog and pig farm insurance coverages that swine farmers will need.
To find out about comprehensive policies that bundle several types of coverages under a single policy or to learn more about the type of coverage you'll need, speak with a reputable insurance agent.
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).