City dwellers and those who live in rural communities have similar needs for personal vehicle and home insurance. However, farmers, ranchers and animal trainers in rural areas often need to utilize special types of insurance in order to protect themselves against specific liability and property damage.
Farmers purchase crop insurance policies from private insurers, which are usually subsidized by the U.S. Department of Agriculture and individual states. Farmers nationwide only pay 33 to 62 percent of the cost of crop insurance due to government subsidies. According to Pennsylvania State University, farmers got more than one dollar back for every one dollar of insurance premiums paid from 1997 to 2006. The type of insurance policy that farmers usually purchase is known as multiple peril crop insurance (MPCI). This type of insurance protects farmers from loss of revenue due to crop damage from flooding, fire, insects, drought, disease and wildlife.
Many farmers use property insurance in order to protect rural dwellings, barns, stables, silos and farm equipment. Farm property insurance can also cover loaned property. Livestock are typically considered property, and as a result insurance companies like State Farm provide compensation if livestock are accidentally shot, drowned, attacked by wild animals or electrocuted.
Farming presents a number of liabilities that can be financially devastating. If someone working on a farm becomes injured on a job, for example, liability insurance will help cover medical and bodily injury damages. Farm liability insurance also protects farmers if they end up polluting nearby properties due to pesticide or animal manure runoff. Additionally, if livestock escapes from a fence and injures another person’s body or property, rural liability insurance will protect the owner of the livestock from fiscal damages.
Winery owners are also usually located in a rural area. While they may take out a generic crop insurance policy in order to protect a harvest, vineyard owners usually require an insurance plan tailored to the entire wine making process. For example, stored wine can become damaged or wine tanks can explode, causing financial damages. Also, vineyards that offer public tastings may require liquor liability insurance. Comprehensive winery insurance policies provide complete coverage throughout the wine making and selling process.
Some rural ranchers offer horse riding lessons to children. Riding schools carry a lot of equine personal liability insurance due to the damages that a horse can cause. People who board horses usually obtain care, custody and control (CCC) insurance, which provides financial compensation to the boarder if a horse becomes injured or dies and the business owner is found to be responsible. Horse trainers also carry CCC insurance for the same reason.
Chris Hamilton has been a writer since 2005, specializing in business and legal topics. He contributes to various websites and holds a Bachelor of Science in biology from Virginia Tech.