Indiana farmers are feeling the squeeze from high input costs and low commodity prices. When you factor in the importance of protecting valuable assets through insurance, that can put even more strain on farm budgets.
“Every farm is different and every policy is different, so what I say may not apply to everybody, but I’ve been trying to help as much as I can,” says John Nagle, Farm Training Specialist with Indiana Farm Bureau Insurance.
He shares with Hoosier Ag Today some strategies that may help farm owners reduce their insurance premiums.
“The first thing—and you see it on TV a lot—is bundling your insurances,” says Nagle. “That you can save money. That also applies to the farm. If you have multiple insurance policies and you have them all with the same carrier, that usually gives you a discount. Also, you may take advantage of ‘paperless discounts’—what we call, paying in full because you’re paying annually instead of monthly.”
“It’s also worth noting that Indiana Farm Bureau Insurance is the only insurance company that offers a discount for livestock producers who complete the Indiana State Department of Agriculture’s Certified Livestock Producer Program,” says Nagle.
He says one of the most effective ways to control insurance costs over time is to reduce the number of claims you’re filing. With a little bit of preventative maintenance and risk management planning, you could avoid filing more claims later on.
“Do an inspection. Look around the building. Do we have fire extinguishers up? Have we done proper maintenance on equipment? Do we implement safety training for our family and employees? Anything that can be done to avoid those accidents. Also, if we can develop a safety plan, having those plans in place well may not always avoid those accidents, but it will reduce the time and damage if it were to take place,” says Nagel.
There are several additional key factors that may impact premium costs. A few of those factors include:
- Claims history: This includes both the frequency and dollar amount of previous claims.
- Property condition: This includes the dwelling (physical structure of the house), farm structures and properties.
- Coverage type: Replacement cost versus actual cash value policy decisions affect rates.
- Deductible amounts: Higher deductibles typically lower premiums.
Nagle adds that a farm policy is not something you can set and forget.
“Things change constantly, and you don’t want to find yourself over-insured or under-insured. Typical farm business actions like purchasing new equipment or additional acres and making structural improvements all impact insurance needs. Reviewing your policies each year with your agent will help you stay on top of all the changes you’ve made. These reviews might also help you identify new discount opportunities.”
To reach John Nagle and his team with Indiana Farm Bureau Insurance, visit: infarmbureau.com.
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John Nagle is the farm training specialist at Indiana Farm Bureau Insurance, an insurance company headquartered in Indianapolis with offices in all 92 counties. Nagle is an experienced professional with 12 years’ experience working directly with farmers. Coverages subject to policy terms, conditions, and exclusions. Subject to underwriting review and approval.
