If you own a farm, you’ll know that animals are integral to the success of its operations. Whether you’re breeding prize-winning horses or raising cows for dairy, the best way to protect these assets is with livestock insurance. Oegema Nicholson and Associates can help you determine which coverages are best for you.
What is livestock insurance?
This important coverage is found under a broader farm insurance policy. It essentially covers against losses to farm animals, such as cattle, horses, sheep and pigs. Although usually reserved for domesticated species, it can protect exotic and aquatic animals, too. Livestock insurance will help pay to replace any livestock that is stolen, dies or has to be put down. Some policies, however may exclude deaths resulting from disease or old age. If you’d like these perils to be covered, you may have to pay an extra premium to cover these risks as well. Certain insurance providers will even cover animals that are hit by vehicles or killed in an accidental shooting. Benefits can apply to losses that happen while the animal is on-site or in transport.
It’s crucial to understand the limitations of your livestock coverage. Insurance providers will cover the animal only up to a certain amount. For instance, a policy might cover up to $50,000 per animal and up to $1 million in losses for the entire farm. Thus it’s important you purchase enough coverage to protect the entire value of your livestock.
Should livestock be listed individually or as a herd?
Livestock may be scheduled individually or as a herd, like 50 head of sheep. It’s usually up to the owner as to what he or she feels is most convenient and efficient. However, a good rule of thumb is this: Animals that are high in value, such as those used for breeding, should be listed individually.
Livestock may be identified in the insurance policy with a unique written description, an ear tag, or some other marking mechanism. It’s important to note that the term ‘livestock’ does not include birds. They are usually covered separately as ‘poultry’.
Is liability protection necessary?
If you run a farm in Canada, liability coverage is mandatory. This important coverage will protect you if someone is injured on your property. Liability protection will also cover medical expenses or legal defence costs should your livestock cause bodily harm. No matter how cautious you may be, accidents can happen — especially due to the unpredictability of animals. As the farm’s owner, you are responsible for the actions of your livestock. Speak to an associate at Oegema Nicholson to ensure you’re adequately insured for liability.
Does coverage exist for livestock producers?
Although rare, coverage certainly exists for feedlots and other livestock producers. These businesses can safeguard themselves against a sudden drop in livestock prices by purchasing risk protection insurance. This type of coverage is popular among businesses that sell cattle, swine or lambs to slaughterhouses.
How much does livestock insurance cost?
Oegema Nicholson is dedicated to bringing you the most affordable insurance premiums on the market. The cost of livestock insurance will depend on the number of animals you’d like to insure, the rarity of the species and whether they’re costly to replace. The location of your farming operation will also be a determining factor. Allow one of our trusted insurance brokers to shop around on your behalf for the best rates.
Why trust Oegema Nicholson?
Family-owned and operated since 1961, Oegema Nicholson has decades of experience catering to the needs of Canadian farmers. Because our brokerage doesn’t work for individual insurance firms, we’re able to protect our clients’ best interests at all times. With six office locations in Ontario and Quebec, Oegema Nicholson is well-equipped to offer you the best customer service in the region. So rely on our expertise to protect your livestock, so you can continue to focus on other areas of your business.
For more information on livestock insurance, call us at 613-224-1455 or contact us here.