Like any other business, those relying on livestock for revenue must protect against the risk of unexpected losses. Livestock mortality insurance helps do just that. It covers animal deaths due to non-natural causes such as fire, vehicular accidents, theft and unforeseen extreme weather events. It also includes loss-of-use coverage for breeders or shows.

Coverage Options

When it comes to livestock mortality insurance, farmers have several options for coverage. They can purchase individual mortality policies for higher-value animals, blanket or herd coverage for several farm animals or even a specific breed. The policy cost will vary based on the type and number of animals being insured, the use/function of the animal, geographic location, and other risk factors. Working with your farm credit agent is important to determine the best policy for your herd or flock. A standard livestock insurance policy will typically include coverage for various perils, such as fire, tornadoes, lightning, automobile accidents, theft, transportation mishaps, and wild animal attacks. A typical policy also provides liability coverage in case an animal causes bodily injury or property damage to someone else. It’s also a good idea to talk to your farm credit agent about an umbrella policy. This additional coverage can help protect your farm business in a lawsuit.

Costs

Having a policy in place can provide significant financial protection in the event of the non-natural death of an animal or, in extreme cases, an entire herd. This type of coverage typically helps businesses that rely on animals for revenue, such as dairy farms and pedigree cattle breeders. A mortality policy can cover the cost of the animal and related expenses, such as veterinarian bills and the loss of revenue from decreased milk sales or egg sales in the case of dairy cows. It can also cover unforeseen extreme weather events, vehicular accidents, accidental shooting and theft. A livestock insurance policy can include herd or individual coverage for all or specific animals and is available for various animals, including cattle, sheep, goats, horses, llamas and pigs. In addition, many providers offer major medical/surgical coverage as an add-on to a mortality policy at a flat fee based on the herd’s size and overall value.

Policy Options

There are several policy options when it comes to livestock mortality insurance. These include individual coverage, which is a way to insure higher-value animals on an individual basis, and blanket or herd coverage, which covers a predetermined number of animals. Other special options may be available for packs or individuals with unique risk profiles, such as those used in zoos, aquariums and professional horse stables. These can cover perils such as extreme weather events, fire, theft, collision or upset while in transit and accidental shooting. Remember that a standard livestock mortality policy does not cover death from old age or disease, as these are considered natural causes. In addition, a standard livestock mortality policy does not include property damage or liability for animal-related injuries to others. A farm and ranch umbrella liability policy typically covers these. A full list of coverages and policy options is available from a Wilkins agent.

Benefits

Animal mortality insurance can be helpful for businesses that rely on animals as a revenue-generating asset. This includes dairy farms, zoos and professional horse stables. These types of companies can be negatively impacted by the premature death of an animal, regardless of the cause. While livestock policies typically don’t cover natural causes of death (like the “Goliath blizzard” or tornadoes), they often include perils such as fire, wind and hail. This allows livestock producers to get reimbursed for losing their herds in these events, even if they don’t have enough farm personal property coverage.

Additionally, some policies provide theft coverage that helps protect animals from being stolen or lost. This may be particularly useful for high-value herds and breeding stock. It can also benefit those who sell their animals as commodities in the commodity markets. This form of livestock insurance is a valuable tool to help mitigate the price volatility risk.