Whether you have livestock to produce food or your organization relies on them, you need a way to cover unexpected animal deaths. This is where livestock mortality insurance comes in. A standard farm policy covers animals that die from certain perils like fire or tornado/wind. However, this doesn’t include old age or death by natural causes.
It pays for the loss of property.
A livestock mortality policy is a type of property insurance that covers the premature death of a covered animal. It acts like a business loss policy, covering the cost to replace the animal and any lost revenue between the time of death and its replacement. Livestock mortality insurance is a great option for farmers and ranchers who depend on selling animals for income.
The cost of a policy will vary depending on the type and value of the animal, with individual coverage typically more costly than herd coverage. Adding broad peril coverage to the policy may lower the insurance rate. This additional coverage can cover extreme weather events, fire, vehicular accidents, theft and wild animal attacks. It can also include straying coverage, which covers the death of animals that have escaped from their property. Many businesses may benefit from a livestock insurance policy, including ranches and farms that raise dairy cows, sheep, goats, pigs and other species, zoos with exotic and rare animals, and breeders of high-value cattle. For example, a zoo could require specialized coverage to protect its animals from disease risk.
It pays for the loss of your animals.
For those who rely on livestock for their livelihood, this is an essential insurance policy to consider. It covers the cost of a dead animal, whether by accident or illness. The policy also reimburses the owner for any lost profits. It also gives lenders confidence that the farm or ranch can handle financial challenges, making getting loans and credit lines easier. Livestock mortality policies are available for many animals, including cattle, pigs, sheep, goats, horses and exotic animals such as zebras and camels. Some policies also include herd cover for large groups of animals. Some even include fertility guarantees for breeding stock. The coverage can be limited or full, depending on the type of policy you choose. The most common policy covers the death of your livestock from natural causes, but you can also insure against fire, theft and other perils. In addition, some policies cover straying livestock that dies on public property.
It pays for the loss of income.
A death can be devastating for farmers whose livelihood depends on the health and production of animals. A livestock mortality policy protects against financial loss resulting from the loss of animals. It can cover the cost of animal care, replacement costs and lost revenue. It can offer assistance covering legitimate expenses and other fees if a creature harms somebody or harms property. Livestock mortality policies can be purchased as an add-on to a farm combined or stand-alone policy. Different policies offer different coverages and limits. Some offer “full mortality” coverage, which reimburses you for any cause of death, including illness and age. Other policies cover a specific list of named perils, such as fire, lightning or windstorms. Some policies also cover the cost of removing fallen stock, including slaughtering or incineration. Others include straying coverage, which reimburses you if an animal is killed by a vehicle or another predator. For high-value animals, such as show horses or breeding herds, you can get specialized insurance that covers individual animals individually.
It pays for the loss of reputation.
As many livestock owners know, a single death of an animal can cause financial loss due to replacement costs and decreased revenue. A mortality policy may pay for replacing your livestock or compensate you if you cannot return them due to a natural disaster or other event. The coverage is usually available for a one-year term and can be purchased per animal basis or as an add-on to your existing farm insurance. The most common mortality policies cover losses from various causes, including extreme weather events, fire, theft and accidental shooting. However, some types of coverage are excluded from a policy, such as drug misuse and unnecessary animal health surgery. Another option is a herd loss protection policy, which covers losses from the sudden death of animals in a herd. These are often used for breeding livestock or show animals. It is also available for horses and cattle.