How to Choose the Right Dairy Farm Insurance Limits for Your Operation
- Nate Jones, CPCU, ARM, CLCS, AU
- 2 hours ago
- 2 min read
Choosing the right insurance limits is one of the most important steps in building a strong dairy farm insurance program. Set them too low, and a single barn fire, equipment failure, or livestock loss could create major financial strain. Set them too high, and you may overpay for coverage you don’t truly need. The key is finding the right balance based on your herd, facilities, equipment, and operational scale.
Before requesting a cattle farm insurance quote, here’s how to select the right limits for your dairy operation.
1) Start With Accurate Replacement Costs
Insurance limits should reflect today’s replacement cost, not depreciated or historical values. Review:
Milking parlours and free-stall barns
Loafing sheds and calf barns
Feed storage, silage bunkers, and commodity sheds
Shop buildings and manure systems
High‑value equipment (mixers, skid steers, pumps, compressors)
Replacement values have increased significantly in recent years, especially for ag buildings and machinery, so update your limits annually.
2) Set Livestock Limits by Class and Value
Livestock is one of your most valuable assets. Determine limits by:
Milking cows
Dry cows
Heifers (broken into age classes)
Calves
High‑value bulls or registered genetics
You may need scheduled coverage for elite animals or high‑value embryo donors. Precise livestock limits ensure your cost for cattle farm insurance aligns with real exposure, without gaps.
3) Evaluate Liability Needs Based on Your Operation’s Footprint
Dairy farms face constant liability risk from:
Milk haulers, vendors, and inspectors
Equipment movement
Livestock handling
Public road crossings
Visitors and contractors
Most dairies require at least $1M per occurrence, but operations with heavy traffic or public interaction often benefit from additional umbrella liability limits. These are essential when a single accident could exceed standard policy limits.
4) Don’t Overlook Business Income & Extra Expense
If a fire, equipment failure, or storm shuts down your parlour, how long could you sustain operations? Choose limits that reflect:
Time to repair or rebuild
Milking system replacement lead times
Herd impacts and milk production delays
Temporary equipment rental
Many dairy farms underestimate this coverage, yet it’s one of the most critical financial protections.
5) Factor in Equipment Breakdown & Utility Service Needs
Consider limits tied to:
Vacuum pumps
Refrigeration and cooling systems
Gensets and electrical controls
Include utility service interruption to protect against off‑premises outages, an essential layer for modern dairies.
Get the Right Dairy Farm Insurance Limits, Without Overpaying
Not every insurer understands dairy operations, livestock valuation, or equipment‑intensive milk production. Wexford Insurance partners with top‑rated carriers that specialise in dairy and cattle farm insurance, helping owners select the right limits, deductibles, and endorsements, at competitive pricing.
👉 Request your Dairy Farm Insurance quote from Wexford Insurance today and ensure your herd, barns, equipment, and income are fully protected.
