Although farm insurance has several unique aspects, the claims process is much the same as any other business insurance policy. When you file a claim on any part of your farm insurance policy, you will need to follow the normal claims process, along with waiting the proper length of time to receive compensation.
Approved Farm Insurance Claims
Compensation will only be paid out once a farm insurance claim has been approved by the insurer. In order for a claim to be approved, you must properly provide the right information and remain consistent in retelling the incident. For example, say you file a claim for an injury on your property that a visitor suffers. You tell your insurer one story, but the victim tells another to their medical professional. If there are any inconsistencies, this could affect how quickly a claim is settled or approved.
When Can a Farm Insurance Claim Be Denied?
There are a few reasons in which a farm insurance claim may be denied, such as if an accident is not covered by your policy. For example, there are a few exclusions in most farm insurance policies when it comes to death of cattle and livestock. If your livestock dies due to natural causes or old age, it may not be covered—meaning that a claim for compensation may be denied.
It is also important to remain consistent and available throughout the claims process. If there are any inconsistencies in the story you tell to your insurer and other relevant parties, you could have your farm insurance claim denied or extend the length of the process—which in turn draws out how long it can take to receive compensation.
Some states have laws mandating how long an insurance provider can take before approving and paying out a claim. In most states with these laws, the maximum is 30 days. Be sure to check with your state’s laws if you feel that the claims process with your insurer is taking longer than the maximum, reasonable limit.
Also remember that how compensation is calculated and paid out may vary depending on the area of farm insurance in which you have filed a claim. Compensation for liability, for example, will generally be paid directly to the victim rather than the farm unless expenses are related to defense costs and other lawsuit fees. Speak with your insurance agent if you have any questions about your farm insurance policy.