Farm Insurance Liability

[Farmfleury]

Just wondering what type of farm liability farms are keeping nowadays?
I had my vehicle policy at 3 million liability but the rates per unit seem to be getting high. I was thinking of lowering it down to 2 million. My agent suggests to not go below that for sure.
I have my other policy for farm insurance at 5 million and wonder if that is enough these days. It is not tied to each farm building or equipment so the rate is not so bad.
Most new combines and tractors are 3/4 of a million or more and a fire or something could take out a complete farmyard which could easily get up into the millions I think.

[jazz]

Its easy to guage your replacement costs of things go up in smoke one day. There was quite a few combine fires this past harvest.

The bigger concern is probably personal liability from injury or lawsuits etc.

[GDR]

Just wondering what type of farm liability farms are keeping nowadays?
I had my vehicle policy at 3 million liability but the rates per unit seem to be getting high. I was thinking of lowering it down to 2 million. My agent suggests to not go below that for sure.
I have my other policy for farm insurance at 5 million and wonder if that is enough these days. It is not tied to each farm building or equipment so the rate is not so bad.
Most new combines and tractors are 3/4 of a million or more and a fire or something could take out a complete farmyard which could easily get up into the millions I think.

Insurance is provincially regulated so depending where you farm the answers may be different.

You can buy an umbrella liability policy that sort of works as a "top up" for where its needed. ie: you buy 1 million auto / 1 million farm and personal and then a 4 mill umbrella that gives you a total of 5 mill coverage. Should be cheaper than bumping limits on each.

[SASKFARMER]

We have a few that love eddy match and I always wonder if they started a fire and it burnt our yard could they cover the loss or just hand quarters over to me for damages.

[Robertbarlage]

If you hit a train you better have lots of insurance.

[SASKFARMER]

I would say most farms don't carry enough.

[workboots]

Does anyone keep a shell company for risky assets ex. heavy/light road trucks & trailers? Anything that spends time on the road should be detached from the main corporation to avoid major liability.

[SASKFARMER]

Good point.

[Guest]

Does anyone keep a shell company for risky assets ex. heavy/light road trucks & trailers? Anything that spends time on the road should be detached from the main corporation to avoid major liability.

That would be every piece of equip we own ?
Have even had leaf cutter shelters fly across the road in the tornado
Been more farm equipment run into around here than should be

[Farmfleury]

Not really sure about the umbrella thing. I am with two different companies for each of the policies. I don't think a shell company would work because I think they can come after who ever owns a company.
Nobody is saying what their liability is at. Am I way lower or higher than most, just wanted to get a feel for what others are doing? I am assuming most are only at 1 mill for vehicle and 2 mill for farm but who knows.

[Partners]

1 million buys very little anymore.

[rumrocks]

The degree of hurt placed upon you will depend on how skilled a lawyer you come up against.