Swine Hog And Pig Farm Insurance Alaska Policy Information
Swine Hog And Pig Farm Insurance Alaska. 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 Alaska coverage is an absolute must.
What kind of insurance do AK 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 Alaska protects livestock business from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
Why Do Swine Hog And Pig Farms 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 Alaska 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 AK law, as swine farmers are legally required to carry certain types of insurance coverage.
What Type Of Insurance Do Swine Hog And Pig Farms 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 Alaska 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 AK 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 Alaska you'll need to have operating a AK livestock business.
AK 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.
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 Alaska 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.
Alaska Economic Data, Regulations And Limits On Commercial Insurance
If you're an entrepreneur who is thinking about starting a business in Alaska, it's important to have a basic understanding of the state's overall economy before you set up shop. Regardless of how high-quality the products and services you are planning on offering may be, if the location where you open your organization doesn't offer a target market that your products and services will appeal to, chances of success are slim. Furthermore, if a workforce isn't available to support your business, you'll have a hard time staying afloat.
With that said, it's important for business-minded individuals who are thinking about starting a company in Alaska to familiarize themselves with the state's economy; it's also a good idea to have an understanding of the commercial insurance requirements.
Following is an overview of economic trends and commercial insurance policies that business owners are required to carry in The Last Frontier.
Economic Trends For Business Owners In Alaska
According to the Bureau of Labor Statistics, the unemployment rate in Alaska was 6.1% in December of 2019. While that's significantly higher than the national unemployment rate, which was 3.4% in December, 2019, it's lower than it was one year prior, when the rate of unemployment was 6.5% in December of 2018. Though the workforce is growing slower than it is in other states, economists do predict that the rate will continue to decline in the coming years.
Despite Alaska's remoteness and cold climate, it's actually a great start to start a business. According to the Tax Foundation, Alaska is the second most tax-friendly state for business owners in the United States, as there's no individual income tax or state sales tax. Additionally, Alaska has the second highest rate of new business owners, as well as the second highest percentage of available employees (as per 2016).
As in most states, the best spots to start a business in Alaska are the state's biggest cities and the surrounding areas. This includes Anchorage, Juneau, and Fairbanks. Other key areas that are seeing a boost in business development in recent years include Homer, Sitka, Prudhoe Bay, and Ketchikan.
While there are several industries that are experiencing growth in The Last Frontier, specific sectors thrive more than others. Businesses that are related to the following industries are booming in AK:
- Fishing, which is also one of the largest contributors to the state's economy.
- Mining, which provides more than 4,500 jobs in Alaska.
- Petroleum, which is responsible for 34% of jobs in the state. In fact, Prudhoe Bay is North America's largest oil field.
- Tourism is the second largest private sector employer in the state. Each year, millions of people from around the globe travel to Alaska to marvel at the numerous natural wonders that can be found here.
Commercial Insurance Requirements In Alaska
The Alaska Division of Insurance regulates insurance in AK. Alaska mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Alaska 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.
Alaska 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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Also find AK local small businesses by General Liability Class Code and learn about Alaska small business insurance requirements for general liability, business property, commercial auto & workers compensation including AK business insurance costs. Call us (907) 531-9001.