Herd Insurance

Last Updated: August 7, 2020

Definition - What does Herd Insurance mean?

Herd Insurance is a basic type of livestock insurance policy. It can be part of your farm operations insurance or a limited animal mortality policy. This insurance provides coverage for a specific number of animals in your herd or on your farm.

Policies and coverages can vary between insurance companies and include blanket type coverage or specialty coverages for specific herds of animals. The general inclusion of animals are cattle, sheep, goats, pigs, hogs, and chickens.

When herd animals are your underlying business assets or inventory, it becomes vital to protect against mortality risks caused by accidents, illness or disease. The cost for these types of policies is based on a combination of the type of coverage you require and a per-head basis.

Herd insurance is also referred to as herd coverage.

Insuranceopedia explains Herd Insurance

Raising livestock and poultry is a risky and unpredictable business. Animals are exposed to a range of risks on a daily basis.

Like most insurance policies, herd insurance protects farms from the devastating financial losses that occur where there is a loss of livestock. Common risks include diseases, pollution, accidents, natural disasters, and many others.

Depending on the individual risk of your farming operation, having the right livestock insurance is vital to the business. It is common to start with a basic or comprehensive farm insurance policy to which additional coverages are added to ensure your assets and inventory are fully insured.

Adding coverage for cattle, emus, pigs, horses, hogs, sheep, mules, and goats, means you and your livestock are covered in the event of a covered loss.

Poultry Insurance is also available to cover ducks, chickens, pheasants, geese, ostriches, quails, and turkeys for similar losses.

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