Management Solutions

Protection Against Yield Loses

Actual Production History (APH) policies insure producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease. The producer selects the amount of average yield to insure; from 50-75 percent (in some areas to 85 percent). The producer also selects the percent of the predicted price to insure; between 55 and 100 percent of the crop price established annually by RMA. If the harvested plus any appraised production is less than the yield insured, the producer is paid an indemnity based on the difference. Indemnities are calculated by multiplying this difference by the insured percentage of the price selected when crop insurance was purchased and by the insured share.

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Crop Hail - coverage provides protection against physical damage from hail and/or fire. Most hail policies include extended coverages like fire and lightning, vandalism and malicious mischief, and certain perils while in transit and storage, at no additional cost to you.

How Does It Work?

A dollar amount of coverage is selected by the producer. Options with different deductibles may be selected to permit a producer to partially self-insure for reduced premium costs.

Coverage is provided on an acre-by-acre basis, so that damage that occurs on only part of a farm may be eligible for payment when the rest of the field remains unaffected

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Margin Protection (MP) Insurance

The Margin Protection (MP) plan of insurance is a privately developed product that was submitted to the FCIC Board under Section 508(h) of the Federal Crop Insurance Act. Margin Protection is offered as an area based plan that can be purchased as a stand-alone policy or purchased in conjunction with a Yield Protection or Revenue Protection policy. The plan provides producers with coverage against an unexpected decrease in their operating margin.

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Starting in the 2016 crop year, the new Margin Protection (MP) plan became available in addition to underlying crop insurance policies in select counties starting for corn, rice, soybeans, and spring wheat.

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The plan provides coverage that is based on an expected margin, which is the expected area revenue minus the expected area operating costs, for each applicable crop, type and practice. Margin protection is area-based coverage and may not necessarily reflect a producer’s individual experience. The margin protection plan can be purchased by itself, or in conjunction with Yield Protection or Revenue Protection policy.

Margin protection will be available for rice in select Arkansas, California, Louisiana, Mississippi, Missouri and Texas counties. Coverage is available for spring wheat in select Minnesota, Montana, North Dakota and South Dakota counties. Corn and soybeans in all Iowa counties will be eligible for margin protection insurance.

A producer may choose coverage from 70 percent to 90 percent of their expected margin. A higher level of coverage will have a higher premium rate. The catastrophic (CAT) level of coverage is not available under this policy.

The Annual Forage Insurance is designed to meet the needs of producers planting annual forage crops for use such as livestock feed or fodder. This includes, but is not limited to, grazing, haying, grazing/haying, grain/grazing, green chop, grazing/green chop, or silage.

Similar to Pasture, Rangeland and Forage Insurance, the Annual Forage Insurance Plan is based off of rainfall index data provided by the National Oceanic and Atmospheric Administration Climate Prediction Center. With the Annual Forage Insurance Plan, producers are able to insure annual forage production value by dividing their liability across a series of two month intervals and insuring based on the Expected Grid Index representing the average precipitation data for the Grid ID. Each grid has a historic precipitation index calculated for it for each of the two month intervals dating back to 1948. The policy is designed to insure both irrigated and non-irrigated acres.

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Pasture, Rangeland, and Forages cover approximately 55 percent of all U.S. land. Forage grows differently in different areas, so it’s important for farmers and ranchers to know which types and techniques work best for their region.

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In this feed replacement program for livestock producers suffering forage losses due to lack of precipitation, there are two outcomes:

1. Receive indemnities due to lack of precipitation.

2. Receives rain and has an out-of-pocket expense.

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Typically the outcome is somewhere in middle:

• Producers now have the ability to “pencil out the weather”

• Out-of-pocket expense is not a bad bet to lose – would you pay for rain?

Rainfall Index – Pasture, Rangeland, Forage (RI-PRF) is a federally reinsured product that provides protection against a single peril – lack of precipitation. Coverage can be purchased by landlords, tenants, and owner/operators for those acres important to their haying or grazing operation. Producers may select from a variety of coverage levels, productivity factors, and two-month index intervals to personalize their plan. The Rainfall Index program uses weather data collected by the National Oceanic and Atmospheric Administration to determine rainfall levels. When the final grid index falls below your trigger grid index, you may receive an indemnity.

See below for some of the ways our personal lines department can help protect you, your family, and your property. 

Home / Auto / Life – Home, auto and life insurance are some of the most sought-out insurance plans. Here are some commonly asked questions that may help you decide the insurance you are looking for.

Homeowners – Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it. Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people.

Automobile – Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability, and medical coverage to the insured. 

Life – Life insurance may be difficult to think about, but if someone depends on you financially, it is a topic you should not avoid. In the event of a tragedy, life insurance can help provide for your loved ones.

Motorcycle – You will be able to enjoy the open road even more when you are not worried about the safety of yourself, your passengers, or your investment. Your motorcycle may be one of your most prized possessions. It deserves special protection. 

Off-Road Vehicle Insurance – Off-road vehicle insurance is designed to cover ATVs, golf carts, dirt bikes, utility vehicles, snowmobiles, go-carts, dune buggies and other recreational or work-related vehicles. Many people assume that their homeowner or auto insurance will cover such vehicles, but they often provide little, if any, of this type of specific insurance. An off-road vehicle policy is the best way to ensure the protection of your vehicle, whether it is in current use or storage.

Renters – Renter's insurance covers your possessions against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm, and water damage from plumbing. However, renter's insurance does not cover floods, earthquakes or routine wear and tear. You can, however, buy separate policies for flood and earthquake damage.

• USDA offers several risk management and disaster assistance options to help producers recover after they are impacted by severe weather, including those impacted by winter storms and extreme cold.

• Even before disasters strike, USDA provides tools for producers to manage their risk through the Federal Crop Insurance Program, a public-private partnership between USDA’s Risk Management Agency and private companies and agents. For crops that do not have crop insurance available, the Noninsured Crop Disaster Assistance Program (NAP) is available through the local Farm Service Agency. This risk protection includes crop production loss and tree loss for certain crop insurance products. It is recommended that producers reach out to their crop insurance agent or local FSA office for more information.

• USDA Ready to Assist Farmers, Ranchers and Communities Affected by Winter Storms

Workers compensation laws were created to ensure that employees who are injured on the job are provided with fixed monetary awards. This eliminates the need for litigation and creates an easier process for the employee. It also helps control the financial risks for employers since many states limit the amount an injured employee can recover from an employer. 
Workers Compensation Insurance is designed to help companies pay these benefits. As a protection for employees, most states require that employers carry some form of Workers Compensation Insurance. Workers Comp is not a health insurance alternative. Workers compensation is designed specifically for injuries sustained on the job. 

In most states, if you have employees, you are required to carry Workers Compensation coverage. Even in non-mandatory states, it can be a very good idea, particularly if you have many employees, or if they are engaged in hazardous activities.
 

Do I Need Workers Comp?

Employers have a legal responsibility to their employees to make the workplace safe. So as soon as you have 1 employee you are obligated to get workers comp insurance. However, accidents happen even when every reasonable safety measure has been taken. 

To protect employers from lawsuits resulting from workplace accidents and to provide medical care and compensation for lost income to employees hurt in workplace accidents, in almost every state, businesses are required to buy workers compensation insurance. Workers compensation insurance covers workers injured on the job, whether they're hurt on the workplace premises or elsewhere, or in auto accidents while on business. It also covers work-related illnesses.

Workers compensation provides payments to injured workers, without regard to who was at fault in the accident, for time lost from work and for medical and rehabilitation services. It also provides death benefits to surviving spouses and dependents. 

Each state has different laws governing the amount and duration of lost income benefits, the provision of medical and rehabilitation services and how the system is administered. For example, in most states there are regulations that cover whether the worker or employer can choose the doctor who treats the injuries and how disputes about benefits are resolved. 

Workers compensation insurance must be bought as a separate policy. Although in-home business and business owners policies (BOPs) are sold as package policies, they don't include coverage for workers' injuries. 

Finding insurance doesn't have to be difficult. We do the work for you, so you can relax.

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General Liability Insurance

If you have a personal umbrella liability policy, there's generally an exclusion for business-related liability. 

Unfortunately for every business owner, the chances of getting sued have dramatically increased in the last decade1. General Liability insurance can prevent a legal suit from turning into a financial disaster by providing financial protection in case your business is ever sued or held legally responsible for some injury or damage.

General Liability pays losses arising from real or alleged bodily injury, property damage, or personal injury on your business premises or arising from your operations. The Hartford's liability programs extend far beyond the provisions of typical policies, with broadened coverage and increased limits in over 30 areas.
Broad Range of General Liability Protection

• Bodily Injury, including the cost of care, the loss of services, and the restitution for any death that results from injury

• Property Damage coverage for the physical damage to property of others or the loss of use of that property

• Products-Completed Operations provides liability protection (damages and legal expenses up to your policy's limit) if an injury ever resulted from something your company made or service your company provided

• Products Liability is a more specialized product liability insurance that protects your company against lawsuits from product-related injury or accidents

• Contractual Liability extends to any liability you may assume by entering into a variety of contracts

• Other coverage includes: Reasonable Use of Force; Borrowed Equipment; Liquor Liability; Non-Owned Vehicles (such as aircraft and watercraft); Fire, Lightning or Explosion Damage; Water Damage Liability Protection; Legal Defense Costs; Medical Payments; Personal Injury; Advertising Injury; and specialized liability protection for specific business types

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Commercial Auto

As a business owner, you need the same kinds of insurance coverages for the car you use in your business as you do for a car used for personal travel -- liability, collision and comprehensive, medical payments (known as personal injury protection in some states) and coverage for uninsured motorists. In fact, many business people use the same vehicle for both business and pleasure. If the vehicle is owned by the business, make sure the name of the business appears on the policy as the "principal insured" rather than your name. This will avoid possible confusion in the event that you need to file a claim or a claim is filed against you.

Whether you need to buy a business auto insurance policy will depend on the kind of driving you do. A good insurance agent will ask you many details about how you use vehicles in your business, who will be driving them and whether employees if you have them, are likely to be driving their own cars for your business.

While the major coverages are the same, a business auto policy differs from a personal auto policy in many technical respects.