If a catastrophe were to strike your dairy, would your current property insurance policy cover your risk? To help make sure you have the coverage you need, follow these recommendations by insurance professionals:
• Work with a reputable insurance company. One with agricultural experience is a plus.
• Work with a knowledgeable, respected insurance agent.
• Review your coverages every year, or at least every two years.
• Understand what type of coverage you have and what type of coverage your need. Make sure the two mesh.
• Evaluate your coverage from a claim point of view.
• Keep an accurate record of everything you own. Consider a video record and store it off-site.
• Work with your accountant to create and maintain accurate depreciation and keep inventory schedules.
• Honestly assess the value of everything your own — not only the initial cost, but replacement cost, too. Don’t forget to count the small stuff.
• Have an emergency plan.
And if you are not sure about any of these details, ask for input and advice from trusted professionals. “Be sure to discuss ‘what-if’ scenarios,” recommends Patrick Sturz, certified public accountant and principal with Larson Allen.
“It doesn’t cost anything to ask,” says Bill Jensen with Farm Bureau’s Rural Mutual Insurance Company.