How to Choose the Right Livestock Mortality Insurance Policy

Whether you raise cattle, sheep, or pigs for your livestock operation, mortality insurance can help protect your investment and revenue. It offers coverage against death and replacement costs associated with an animal’s unexpected death.

Livestock insurance can be issued through the USDA’s Risk Management Agency or a private insurer. Speak with your insurance specialist or loan officer about your options.

Coverage

A livestock mortality insurance policy protects farmers against loss of income and replacement costs if one or more animals die from non-natural causes. It is a crucial investment for businesses that rely on animals, such as traditional farming operations and zoos.

Livestock mortality coverage can be offered under a farm combined policy or as a separate standalone policy. This insurance helps to cover lost income and the cost of replacing a deceased animal, similar to other business loss policies.

The policy is generally based on an agreed value for each covered animal or herd. It is typically based on current market values but can also be adjusted to suit the needs of your operation.

Limited mortality coverage can be added to the policy for specific perils, such as fire or extreme weather events like snow or blizzard. This type of coverage typically provides a reduced rate but only applies to the death of a covered animal caused by a specific cause.

Cost

Whether you run a small row crop farm with a few cattle to sell or a dairy farmer with an essential herd of cows that help generate revenue, animal mortality insurance is a smart financial move. This policy will pay out if an animal dies due to specific causes, including death caused by extreme weather events or accidents.

The cost of a livestock mortality policy is determined by the number of animals to be covered, their age and health status, and any other special risk protections included in the policy. For example, some procedures will protect livestock against loss due to earthquakes, lightning, floods, drowning, electrocution, wild animal attacks, theft, transportation mishaps, and accidental shooting. The optimal coverage choice for your herd will be determined in collaboration with you by our team of experts. We want to give you cheap livestock mortality coverage that works with your spending plan.

Exclusions

Whether you own cattle, hogs, sheep, goats, or horses, mortality insurance is an essential option for your livestock. It helps replace animals killed prematurely due to non-natural causes like an accident, injury, disease, disability, or weather events.

Besides covering the cost of replacing animals, mortality policies help protect lost income until that animal is returned. For example, if you purchase a breeding bull and it dies during a trip to the show circuit, this policy could save your business from a potential loss of income.

Livestock policies typically require that you give the insurance company (or its designated representative) prompt notice of any illness or injury. It may sound like a hassle, but insurers take it very seriously.

Policy duration

When choosing the right livestock mortality insurance policy for your operation, it’s essential to understand what exactly it covers. Most policies will include a variety of perils, including fire, theft, and loss due to extreme weather conditions, among others.

Aside from the standard coverages, some companies offer specialized policies for specific perils, such as hypothermia and contaminated feed and water. Generally, the best way to determine whether coverage options are available is to speak with an agent.

A risk management plan is one of the finest ways to safeguard your company, in addition to having complete animal mortality coverage. This plan will help you avoid the financial ruin of livestock death and other losses, such as lost productivity, damage to your equipment, and more. Contact an authorized farm insurance agent today if you’re ready to get a free quote on your livestock insurance policy. You may be surprised to see how affordable it is.