A dairy farm business supplies butter, cheese, milk, and other related products to grocery stores and farmers markets. Though predicted by the USDA to enjoy an exponential growth in average net income, it faces many risks.
Tragedies can happen anytime. For instance, your cows can die because of a disease. Fires can destroy one of your barns. Of course, an inspector might get injured while in the premises of your dairy farm.
If there’s a horse farm insurance package for horse farms, then there’s dairy farm insurance for your business. You can use this to cover lawsuits, recover financial losses, pay for equipment repair or replacement, and cater to the needs of employees. Read this guide to know how this works, how much premiums cost, and where to get the best coverage.
Dairy Farm Liability Insurance
| CoverWallet | NEXT (Best) | GDI | Nationwide | Markel | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $300,000/$1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $300,000/$2,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $1,000,000 | $100,000 | $5,000 | $100,000 | $100,000 |
| Waiver of subrogation included? | Yes | No | Included | Excluded | Can be included |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded | Excluded | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Excluded | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 | $0 |
Your dairy farm might face liabilities.
An employee can run someone over while using a tractor or any other mobile equipment. One of the cows might kick a farrier you hired. Inspectors might slip and fall while checking the waste management system of your dairy farm.
What we mentioned above are examples of problematic situations where general liability insurance can help.
Use the table above to compare the general liability insurance of companies we recommend.
General liability insurance grants a shield if independent contractors, visitors, clients, and other third parties file a claim for bodily injuries or property damage against your dairy farm. By having this insurance, you can pay for these costs without experiencing financial losses
-
Medical treatments
-
Reimbursement for property damage
-
Defense costs
-
Court judgments
A general liability policy of poultry farm, dairy farm, and fish farm insurance packages has add-ons, so it won’t only cover claims for bodily injuries or property damage. Expect to see any of these included:
-
Rented premises liability coverage
-
Hired/non-owned auto liability coverage
-
Tools and equipment coverage
Public Liability Insurance For Dairy Farms
Public liability insurance covers claims for bodily injuries or property damage. It works the same way as a general liability policy. In the USA, public liability insurance is rarely sold as most businesses go for a general liability policy. But in the UK, this is more common than a general liability policy.
It’s possible for you to get public liability coverage in the USA. However, the policy only provides very limited protection because it doesn’t come with add-ons.
Commercial Property Insurance For Dairy Farms
| NEXT (Best) | CoverWallet | Nationwide | GDI | Markel | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $200,000 | $50,000 | $50,000 | $25,000 | $100,000 |
| Contents coverage limit (minimum) | $50,000 | $50,000 | $25,000 | $25,000 | $30,000 |
| Outdoor signs | Included | Excluded | Included | Excluded | Excluded |
| Accounts receivable | Included | Excluded | Included | Included | Included |
| Money and securities | Included | Excluded | Included | Included | Included |
| Lock and keys | Included | Excluded | Included | Excluded | Excluded |
| Business interruption floater | Included | Excluded | Included | Included | Included |
| Equipment breakdown floater | Included | Excluded | Included | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | Excluded | Excluded | Included |
| Employee dishonesty floater | Excluded | Excluded | Excluded | Excluded | Excluded |
Your dairy farm has numerous barns for keeping the cows and storing hay. A silo, equipment garage, and milking sheds are also found. Imagine how much you’ll lose if a wildfire or structural fire happens and these get destroyed.
Commercial property insurance eases your worry about the resulting losses if something happens to your dairy farm’s structures. This policy is the dairy farm business insurance that will account for the business property damage or destruction caused by:
-
Fire
-
Theft
-
Vandalism
-
Malicious mischief
-
Sinkhole collapse
-
Volcanic action
-
Lightning
-
Weather
-
Aircraft
-
Vehicle
-
Falling objects
Insurance companies include add-ons. This is why commercial property insurance for dairy farms and ranch can also help if valuable papers and records, equipment, and other valuables get destroyed or damaged while in a building of your dairy farm due to the perils above.
Use the table above to compare the commercial property insurance of companies we recommend for dairy farms.
Get all the best quotes from leading providers in a click of a button!
Business Owner’s Policy For Dairy Farms
| NEXT | CoverWallet (Best) | Americana | Hiscox | Specialty Risk | |
|---|---|---|---|---|---|
| General liability aggregate limit (minimum) | $300,000/$2,00,000 | $2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 | $1,000,000/$2,000,000 |
| Commercial property coverage limit (minimum) | $200,000 | $50,000 | $100,000 | $25,000 | $100,000 |
| Optional policies can be added? | Yes | Yes | You need to talk with an agent | Yes | You need to talk with an agent |
| Name additional insureds for free? | Yes | Yes | You need to talk with an agent | Yes | You need to talk with an agent |
We recommend a business owner’s policy if you’re tight on budget but still want to get comprehensive coverage for your dairy farm.
A business owner’s policy is an insurance product that functions as a general liability and commercial property policy at the same time. That said, you can use this insurance when business property gets damaged or when third parties file a claim for bodily injuries or property damage.
Use the table above to compare the business owner’s policy of insurance companies we recommend for dairy farms.
This insurance provides great value for money. Premiums for a business owner’s policy is cheaper than when you purchased general liability and commercial property insurance for your dairy farm business separately.
Tools And Equipment Insurance For Dairy Farms
Similar to a horse farm, equipment and tools are one of your dairy farm’s most significant assets. Not to mention, they’re expensive too.
You need to immediately repair or replace equipment that gets damaged or lost. Of course, you’ll lose a lot of money without the appropriate coverage in place.
Purchasing tools and equipment insurance allows you to take care of expenses in case equipment and tools get lost or damaged because of fire, theft, vandalism, and other covered perils. These are the most common implements you can insure with this policy:
-
Feed grinders
-
Mist cooling systems
-
Milking machines
-
Power generators
-
Water pumps
-
Milking cans
-
Compact tractors
General liability or commercial property insurance only comes with tools and equipment coverage. However, policy limits are very limited. For dairy farms, we suggest stand-alone tools and equipment insurance as it offers $25,000-$50,000 minimum coverage.
Commercial Auto Insurance For Dairy Farms
Don’t forget commercial auto insurance if your dairy farm uses a trailer or truck to transport finished goods and livestock.
A lot of unexpected things can happen while your trailer or truck is running on the road. Commercial property insurance helps your business solve the resulting problems. Here are the most common functions of this dairy farm insurance policy:
-
Cover the medical treatment of the victims of an accident caused by your dairy farm’s trailer or truck
-
Account for parts repair or replacement expenses if your trailer or truck gets damaged because of fire, theft, vandalism, collision, weather, and other covered perils
-
Pay for emergency roadside assistance services, such as gasoline delivery or tire delivery, if your truck or trailer experiences issues while transporting finished goods or livestock
-
Finance the medical treatment of the driver and passengers if your trailer or truck gets involved in an accident caused by an uninsured/underinsured driver
Note that the liability coverage of commercial auto insurance doesn’t apply if your dairy farm’s trailer or truck caused an accident because the driver committed criminal activities such as DUI, reckless driving, driving without wearing a seat belt, overspeeding, etc.
Pollution Liability Insurance For Dairy Farms
Manure and other waste produced in dairy farms can cause significant water and air pollution problems. Because of this, authorities require you to comply with strict waste management guidelines.
You’re liable in case employee error or structural issues result in the leakage of waste that damages wildlife and the environment.
In such a situation, pollution liability insurance can help. You can use this insurance to cover the following costs if waste is spilled during containment, transportation, or disposal:
-
Pollution containment and reversal
-
Public relations
-
Defense costs if affected parties decide to sue
-
Extra labor for hauling waste materials
Livestock Insurance For Dairy Farms
You might not know this but the cows of your dairy farm are insurable. To cover them, you need to purchase a livestock insurance policy.
Insuring your cows is very important. Disease can kill them anytime. Also, environmental factors such as fires and smoke can change your cows’ milking habits. And so, you might need to replace your herd.
Livestock insurance mitigates financial losses by reimbursing the actual cash value or replacement cost if your herd dies or gets damaged because of:
-
Fire and lightning
-
Accidental shooting
-
Stampede
-
Loading and unloading accidents
Some insurance companies automatically included a cargo insurance policy in their livestock insurance to protect your herd during transit.
Excess Liability Insurance For Dairy Farms
Some claims are very expensive. As a result, you might find yourself in a situation where a general liability policy or pollution liability policy doesn’t have enough funds to completely cover your business.
It’s smart to invest in excess liability insurance. Excess liability insurance, as the name implies, covers the extra amounts that your general liability or pollution liability insurance can’t cover. For example, if the claim is $5 million and your general liability policy only has $2 million, then this insurance will take care of the excess $3 million.
Depending on which insurance company you work with, excess liability insurance is available as an endorsement, stand-alone policy, or automatic add-on to general liability and pollution liability insurance policies.
Help others make better decisions
Dairy Farm Insurance Cost
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $95 |
$1,140 |
$0-$500 |
| Pollution liability insurance | $110 |
$1,320 |
$1,000-$5,000 |
| Umbrella liability insurance | $97 |
$1,164 |
$500-$1,000 |
| Commercial property insurance | $105 |
$1,260 |
$1,000-$2,500 |
| Business owner’s policy | $185 |
$2,220 |
$500-$1,000 |
| Commercial auto insurance | $100 |
$1,200 |
$1,000-$1,500 |
| Workers compensation insurance | $120 |
$1,440 |
$2,000-$5,000 |
| Livestock insurance | $103 |
$1,236 |
$1,000-$5,000 |
The average dairy farm insurance cost is $95 per month or $1,140 per year for a $1 million general liability policy. This estimate assumes that you have 5 employees and generate $500,000 or less per year. Factors that affect the cost of premiums are business size, business history, number of employees, annual revenue, location, and claims history.
The table below shows the cost of the $1 million general liability insurance from the best dairy farm insurance companies:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $40 | $480 | Best overall; Fastest general liability insurance for dairy farms |
| CoverWallet | $59.58 | $714.96 | Dairy farm insurance online quotes comparison |
| Tivly | $61 | $732 | Comparing dairy farm insurance quotes over the phone |
| GDI | $80 | $960 | Customers looking for insurance options that can be customized to best fit their business model |
| Nationwide | $84 | $1,008 | AgriChoice coverage that covers the unique risks dairy farms and other agricultural businesses face |
| Markel | $91 | $1,092 | Established and thriving dairy farms |
Get all the best quotes from leading providers in a click of a button!
Best Dairy Farm Insurance Companies
Dairy farm insurance gets a lot easier to get your hands on when you know which company you should be going to. Unfortunately, figuring out the best companies in the industry isn’t always as easy as it may seem, especially if you’re new to getting insurance for your farm.
We want to make the process of buying insurance as simple as possible for our readers, and we’ve gone ahead and gathered together some of the best dairy farm insurance companies out there. We’ll cover the details of each company, their rate for a $1 million general liability coverage, and their pros and cons.
NEXT Dairy Farm Insurance
Pros
-
Best overall
-
Get an online proof of insurance and send as a text message, email, or social media post
-
Fastest general liability insurance for dairy farms
-
Great customer service and reputation
-
Issues an online proof of insurance instantly
-
Outstanding value for money
-
Bundle two or more insurance policies and get a 10% discount
Cons
-
Couldn’t find any
NEXT doesn’t have a dairy farm insurance program. However, you can qualify for its insurance package for all other miscellaneous manufacturing businesses. Policies offered are general liability, commercial property, and workers compensation insurance. You need to call NEXT’s partner, Tivly, to get a quote.
Best for: Best overall; Fastest general liability insurance for dairy farms
Average cost: $40 per month
Our rating: 10/10
CoverWallet Dairy Farm Insurance
Pros
-
Compare dairy farm insurance quotes online to get the best value for money
-
Easily add an unlimited number of additional insureds to your coverage
-
Cancel your policies anytime without any additional charges
-
2017 awardee for the best insurtech company
Cons
-
Not an insurance company but an insurance broker
CoverWallet, a sister company of AON, is an insurance broker that helps you get the right coverage at the most reasonable price. It has an online quotes comparison platform you can use to get the quotes of different insurance companies. You can then purchase a coverage online or proceed to call an agent for further clarifications about your coverage.
Policies you can buy from CoverWallet are general liability, umbrella liability, commercial property, and more. Your general liability insurance quote will feature a $1 million per occurrence limit and a $2 million aggregate. Optional policies might be included.
Best for: Dairy farm insurance online quotes comparison
Average cost: $59.58 per month
Our rating: 10/10
Tivly Dairy Farm Insurance
Pros
-
Call and compare quotes over the phone
-
A partner of many reputable insurance companies, such as NEXT, Progressive, and GEICO
-
Responsive customer service
Cons
-
You need to call to get a quote
Tivly (formerly CommercialInsurance.NET) helps to find the right coverage that suits your business profile. It works with an extensive network of partners that underwrite general liability, commercial property, and other business insurance solutions for startups, growing, and established ventures. Call Tivly now and compare quotes over the phone.
Best for: Comparing dairy farm insurance quotes over the phone
Average cost: $61 per month
Our rating: 10/10
Nationwide Dairy Farm Insurance
Pros
-
Very comprehensive coverage
-
Reasonable pricing
-
Quick to respond to claims
Cons
-
Limits might be lacking
Nationwide is an insurance company based in the United States that was founded in 1926 when farmers wanted better auto insurance rates. Over the years, Nationwide has expanded into property and casualty and life insurance.
Nationwide covers dairy farms under their AgriChoice policy, which offers a wide range of coverage for things including accidental shootings, electrocution, food loss, wild animal attacks, and more. AgriChoice also features farm home and contents cover, general liability coverage, and equipment breakdown insurance.
Best for: AgriChoice coverage that covers the unique risks dairy farms and other agricultural businesses face
Average cost: $84 per month
Our rating: 10/10
GDI Dairy Farm Insurance
Pros
-
Online agents for consultation
-
Customizable coverage
Cons
-
Doesn’t provide online quotes
The GDI Insurance Agency is based in Turlock, California, and they operate on a principle of providing their clients with personalized insurance coverage. They specialize in accurately assessing risks so that they can offer their customers the best possible rates without compromising themselves.
GDI offers a variety of coverage options for dairy farms, including workers’ comp, business liability coverage, equipment insurance, commercial auto insurance, and more. They also ensure that their agents and employees always keep up with the latest developments in the agricultural field.
Best for: Customers looking for insurance options that can be customized to best fit their business model
Average cost: $80 per month
Our rating: 8/10
Markel Dairy Farm Insurance
Pros
-
Has numerous liability coverage
-
Offers business disruption coverage to dairy farm insurance policies
Cons
-
Expensive
Markel has spent over 70 years working in the agricultural insurance space, and they always try to remain on the forefront of the industry. They do this by making sure that their agents keep a close eye on changes in how dairy farms are run and they go on to adjust their insurance policies accordingly.
Markel allows you to choose between several forms of coverage when it comes to loss of property on your dairy farm. They also offer personal liability for dwellings that you occupy, commercial general liability, and limited professional liability coverage.
Best for: Established and thriving dairy farms
Average cost: $91 per month
Our rating: 8/10
