Why do I need peak season coverage?

Temporary insurance above your policy’s stated farm personal property limit at certain times during the year may be vital to the success of your business. With it, your inventory may be covered with a higher policy limit to help protect your operation from loss during a stated period.

From the stored seed and fertilizer for spring planting to holding grain onsite during the fall harvest, the value of your farm can fluctuate for many reasons throughout the year. Even though you can get coverage for these higher values when your farm is busiest, there are ways to plan for your peak season to help keep you focused on the task of planting and harvesting. So, before your busy season begins, connect with your American Family Insurance agent and estimate your needed coverage ahead of time. Here’s how this added coverage can help protect your operation.

What is peak season insurance?

It’s extra insurance that farmers can buy to cover a period of time when the overall value of the farm inventory is higher than normal. Your farm’s inventory surges typically before planting season begins and after harvest. It’s during this specified time period when this coverage kicks in. Because this endorsement is only active when your farm’s value is at its peak, you can save money on premiums and won’t have to pay a higher rate for the entire year when your commercial agribusiness insurance policy is active. Here are a few other things to know about peak season insurance.

Remember to plan ahead. During peak season, your farm is going to be very busy. And with all that needs your attention, it can really pay off to plan in advance. So, get in touch with your agent when you have time — maybe during the winter months — and plan out your coverage so you don’t have to make those changes during the busy days.

Know your peak season periods. This coverage will only be active to protect your farm inventory during the date ranges that you specify. And getting the date range just right can be a trick. The best way to approach this is to review when your inventory has peaked in the past. Look at your files from the past five years and chart the start and stop dates for planting and harvesting.

Remember to include date ranges that cover the time your seed, insecticide, fertilizer and other costly items first arrived. Also take into account the end dates when your grain shipped from the storage bins. Pad your estimates so that you’ll be covered if your seed arrives late this year or if grain storage is extended because of early snowfall or other reasons that force you to store it until prices climb higher.

Peak season endorsement for livestock

As herd sizes shift across the year, your coverage can be adjusted to match the value of the livestock at your farm or ranch. And peak season insurance can play a key role here as well. By increasing coverage during the birthing season and decreasing your coverage when selling livestock, you can more carefully control the amount you pay for insurance. By managing that protection as your herd’s value shifts across the year, you may have more money for other projects or investments.

At American Family Insurance, we know the value of custom-building a policy that fits your farm or ranch well. That’s why we offer a variety of optional farm and ranch insurance coverages. Our agents are trained to guide you through the process and help you make the most of your insurance dollars. They’ll work to specifically create a plan that carefully protects your operation all year long. Contact your agent to review our many coverage options available to farm and ranch owners today.

This article is for informational purposes only and based on information that is widely available. This information does not, and is not intended to, constitute legal or financial advice. You should contact a professional for advice specific to your situation.

This article is for informational purposes only and based on information that is widely available. We do not make any guarantees or promise any results based on this information.

This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.