74 NEBRASKA CATTLEMAN January 2025 PEERS NCIG WHAT DOES THAT POLICY DO? TODD BARTEK | FNIC SENIOR VICE PRESIDENT AND DIRECTOR OF AG As the size of your cattle operation grows, so does the potential for risk. As risk grows so does the list of insurance coverages to protect you from those risks, but what do all those policies do? Let’s review a few of the policies in relation to the risks they protect you from. INLAND MARINE INSURANCE Your standard property insurance usually only covers items at a fixed location, like your barn or home. But what happens if equipment or livestock is on the move? For example, if a trailer overturns on the highway or a piece of equipment catches fire during transport, those losses fall under an Inland Marine policy. Despite its name, Inland Marine Insurance has nothing to do with boats or water. Instead, it’s designed to protect high-value property that moves between locations or is used away from your main farm or ranch. Think about tractors, combines or other machinery that regularly travel between fields or farms. If your operation involves significant movement of equipment, inland marine insurance may be a helpful policy to include in your insurance program. PASTURE, RANGELAND AND FORAGE (PRF) INSURANCE Your pastures and water are essential for your cattle, but when extreme weather like droughts hit, they might not be available. This is where Pasture, Rangeland and Forage (PRF) Insurance can help. It covers losses due to lack of rainfall, helping you manage those dry spells. The program uses data from the National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA CPC) and works on a grid system. You pick at least two, two-month periods when rain is crucial for your forage. If the rainfall during these times is below the historical average, you get a payment. The program automatically calculates losses, so you don’t have to submit claims. It’s a straightforward way to ensure you have financial support to procure food and water for your cattle. LIVESTOCK RISK PROTECTION (LRP) INSURANCE Market ups and downs are just part of life for cattle producers, but that doesn’t make them any less stressful. Livestock Risk Protection (LRP) Insurance is here to help you manage those fluctuations, offering a financial safety net when market prices fall below expected levels. Here’s how it works: You select a coverage price and time period for your cattle, and if the market price at the end of that period is lower than your chosen price, the policy pays you the difference. FARM AND RANCH LIABILITY INSURANCE This is a general liability policy designed for farmers and ranchers. It includes coverage for bodily injuries or property damage caused by your farming or ranching activities. It covers incidents like injuries to visitors on your ranch, damage caused by livestock or accidents involving farm equipment used in your operation. LIABILITY FOR YOUR ATVS AND UTVS When it comes to insuring your ATVs and UTVs, things can get a bit tricky. CONTINUED ON PAGE 76
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