Dairy Farm Insurance
Your Farm, your Home, your Business
- The dairy industry ranks third in the Canadian agricultural sector, yet with all the risks surrounding dairy farming like damage to buildings, machinery, land, and cattle, insurance for this industry can be complex.
- Coverage alone for livestock from its many perils is vast.
- Hancock Insurance can help to ensure you receive the coverage that you need to reduce your risks and run your farm worry free.
If you need more information, e-mail us your questions at email@example.com.
1. Actual Cash Value v. Replacement Value
Actual Cash Value is the value of the building, after depreciation is applied. This type of insurance would require the insured to contribute in some form to the repair of the building. Replacement Value is the cost of replacement of a building with like kind and quality materials and workmanship without depreciation.
Co-Insurance is invoked on a partial loss. It is the requirement to insure the property to a certain percentage of its replacement value. For example if there is an 80% co-insurance clause, the policy requires the item insured carry insurance to a minimum of 80% of its replacement value. If the insured chooses to underinsure their property, the following formula is applied:
Replacement value: $500,000
80% value: $400,000
Insurance carried: $350,000
Insurance Co. pays: $175,000
In the event of a total insurable loss, the full insurance carried would be paid.
3. Business Interruption Insurance
Business interruption insurance protects against losses resulting from a temporary shutdown because of an insured peril. Generally, business interruption insurance provides reimbursement for lost net profits and necessary continuing expenses.
There are various types of business interruption coverage available. A business interruption policy that includes extra expense coverage in case you have to carry on business at a different location because of insured damage at your original place of business can be a wise business insurance investment.
4. Livestock Coverage
Coverage can be carried for a variety of perils resulting in death of the animal, for example, fire, wind, lightning, impact by vehicle, entrapment, casting, colic, tuberculosis, even power interruption.
5. Fuel Tanks
Please view the following link with respect to risks and prevention of fuel oil losses.