Farm Insurance for Hobby Farms: Do You Need Coverage for a Small Operation?

Despite their smaller stature and, generally, more limited risks and exposures, running a hobby farm can still require you to address certain concerns. Firstly, the term “hobby farm” can apply to a multitude of different operations, including those that may be used to subsidize your primary income, as well as operations intended primarily for enjoyment. Understanding your risk levels and addressing possible insurance needs may seem like an unnecessary step, but such a mentality could have dire consequences.

What Is Hobby Farm Insurance?

Like insurance for larger farming operations, hobby farm insurance may require a multifaceted approach consisting of several types of policies and coverages. While you might not expect these smaller operations to require insurance, complacency could be costly. At Shoop Insurance Agency LLC, we’re well-positioned to help you understand and address your coverage needs.

Am I Required to Have Coverage?

There may not be sweeping legal requirements regarding hobby farms, but you should be aware of how your exact circumstances might invoke certain mandates. Consider the following possibilities:

• Workers’ compensation needs—If you employ others to help with your hobby farm, you may be required to carry workers’ compensation insurance to offset costs arising from on-the-job accidents.

• Automobile-related requirements—Delivering goods or transporting equipment and materials may require the use of motor vehicles. Even if you’re using a personal vehicle, conducting business-related tasks may require you to retain commercial auto insurance.

• Home-based business exclusions—Running a hobby farm out of your home may seem convenient, but standard home insurance may not cover related losses. Endorsements or alternative policies may be necessary.

We’re Here to Help

Hobby farms can come in many shapes and sizes, and insurance needs may vary significantly. While you may not think of yours as a business venture, even smaller operations may still involve insurance-related requirements.

At Shoop Insurance Agency LLC, we can help you understand and address these needs. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.