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A Guide to Farm and Ag Property Insurance


Farm and Agribusiness property insurance is a specialized type of insurance designed to protect farmers and other agribusinesses from financial impacts due to damage or loss of their property, such as livestock, equipment, and buildings. This type of insurance typically covers a wide range of risks, including natural disasters, fire, theft, and vandalism.


Some common types of coverage that may be included in a Farm / Ag property insurance policy include:

  • Building insurance: covers losses due to damage or destruction of buildings on the property, such as barns, silos, warehouses, and other structures.

  • Equipment insurance: covers losses due to damage or theft of farming equipment, such as tractors, harvesters, and irrigation systems.

  • Livestock insurance: covers losses due to death or injury of livestock.

Farm / Ag property insurance policies can vary greatly depending on the specific coverage needs of the farm or agribusiness, so it's important to work with an experienced insurance agent who specializes in this type of coverage to ensure the proper level of protection for all operations.


Another crucial factor to consider is the company that insures the property. Farm / Ag property insurance is vastly different from home, auto, or health insurance and requires niche expertise to underwrite successfully. Each Farm / Ag account comes with its own unique risks and hurdles that are taken into account when underwriting such as property type, location, hazard ratings, and much more. For example, grain elevators and cotton gins are notoriously fire prone structures and accounts located near the coastline have significant hurricane exposures. Insurance companies take all of these factors into account when choosing which risks to accept.


The complexity of insuring Farm / Ag property is further heightened by the tendency of agribusiness operations to have high total insured values (TIV). The larger and more expensive a property is to repair, the less desirable the risk is to most insurance companies. These risks are often split and layered between several companies in order to procure any coverage at all.


Recently, many companies and carriers have closed their doors completely to Farm / Ag accounts due to their poor reputations, challenging natures, and their lack of technology and expertise to underwrite these classes of business successfully. This fear and inconsistency has resulted in fewer insurance options in the standard market and left farmers and agribusiness professionals desperate to find coverage for their properties.


Agribusiness Risk Underwriters (ARU) is a solutions-oriented company built to say “we can find a way to make it work.” ARU did substantial and rigorous homework, investing millions of dollars building an approach to sustainably underwrite these neglected classes of business through underwriting, loss control, and technology, which led to the development of Flex - our proprietary product specializing in “hard-to-place” Farm / Ag.


Flex is able to offer $15M TIV limits - THREE TIMES the amount most of our competitors offer. ARU's access to supportive capacity is a key area of strength. Flex provides coverage for practically any manner of property risk that is associated with farming or agribusiness including (but not limited to):

  • Commodity Processing and Storage

  • Cotton Gins

  • Grain Processing and Storage

  • Greenhouses

  • Hemp Extraction

  • High Value Farm & Ranch

  • Fertilizer Manufacturing and Sales

  • Livestock Confinement

  • Meat Processing / Rendering

  • Nut Processing

  • Seed Sales and Storage

  • Warehouses

  • Wineries

  • And MANY more!

To learn more about our risk appetite, download our Risk Appetite Sheet or schedule a call with Underwriting Manager, Jessica Todd to discuss your accounts!




**PLEASE NOTE THAT ARU MARKETS OUR PRODUCTS ONLY THROUGH LICENSED INSURANCE BROKERS. WE ARE NOT ABLE TO PROVIDE QUOTES OR INSURANCE GUIDANCE FOR FARM OWNERS**










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