Marcia Hultman

Cabinet Secretary

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Division of Insurance - Consumer Information

Farm/Ranch Owner Insurance

 

Guidance on Topics of Frequent Inquiry:

Collapse Coverage for Farm Buildings
Crop Hail Insurance
Farm Employees
Fire
Multi-Peril Crop Insurance

 

Collapse Coverage for Farm Buildings

Farmowners' insurance policies may not provide coverage for collapse of farm outbuildings due to weight of ice, snow or sleet. Most insurance companies offer this form of coverage as an option for an additional premium. Contact your local insurance agent to determine if your policy includes this coverage.

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Crop Hail Insurance

Crop-Hail policies are not part of the Federal Crop Insurance Program. A Crop-Hail policy can be purchased at any time during the growing season, subject to the policy provisions. Check with your insurance agent for more information.

Multi-Peril Crop Insurance (MPCI) policies are available from private crop insurance agents. The service delivery side of the program - writing and reinsuring the policies, marketing, adjusting and processing claims, training and record-keeping - is handled by each private insurance company. The program is regulated by the Risk Management Agency (RMA) of the U.S. Department of Agriculture, who sets the rates that can be charged and determines which crops can be insured in different parts of the country. Questions regarding disputes can be directed to the RMA regional office in Billings, MT, by calling 406.657.6447.

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Farm Employees

A farmer's liability policy can be endorsed to add farm employers liability and medical payments coverage for employees to a specific limit for each farm employee. The policy will define "farm employee."

Farm or agricultural laborers are exempt from the South Dakota Workers' Compensation Law. This means that a farm laborer would not have recourse, if injured, to proceed against his employer under the workers' compensation law.

The farmer may however elect coverage for himself and employees by obtaining a workers' compensation policy and be covered under the workers' compensation law.

Agricultural work that is subject to the workers' compensation law would be a business that operates threshing machines, grain combines, corn shellers, cornhuskers, shredders, silage cutters, and seed hullers for profit. (See SDCL 62-3-16).

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Fire

Pursuant to South Dakota Codified Law (SDCL) 58-10-10, if a building is wholly destroyed due to fire, tornado or lightning, the insurance company must pay the amount stated on the policy. This is applicable to a loss as long as the policy has been in effect for more than ninety (90) days and the policy limits had not been increased by twenty-five percent or more within ninety (90) days of the loss. Additional conditions of law are included in the aforementioned statute.

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