Working a farm can be a rewarding way of life. Farming comes with some inherent dangers that must be acknowledged if you plan on farming commercially. Although you might already have a farm insurance policy that covers your crops and livestock, you may need additional insurance to ensure that all your activities are covered.

Here are three reasons why you might want to combine commercial insurance with your existing farm policy.

1. You store hay for your neighbors.

It's estimated that an excellent field might produce up to 7 tons of hay per acre. If your neighbors don't have the room to store the hay their own farm produces, but you have extra space on your farm, you may think that lending a hand is a good idea.

Unfortunately, your neighbor's hay may not be covered under your farm insurance policy since the storage action could be viewed as a commodity. Acquiring commercial insurance in addition to your farm policy will ensure that you won't be financially liable for anything that happens to your neighbor's hay bales while they are being stored on your property.

2. You run a concentrated animal feeding operation on your property.

The risks associated with feeding large numbers of livestock in a confined area (similar to a feedlot) may not be covered under your traditional farm insurance policy. Since concentrated animal feeding operations (CAFOs) represent more of a commercial interest than simply grazing livestock on your land, a commercial insurance policy may be required to ensure that you are covered in case of an accident.

A commercial insurance policy will ensure that should the increased waste produced by your CAFO activities affect neighboring properties or communities, you will not be financially liable.

3. You use your own semi truck to shop produce or livestock.

An estimated 68% of all goods in the U.S. are shipped via truck. If you have access to your own semi truck that is used to ship produce or livestock to markets throughout the United States, a commercial insurance policy will help protect your equipment and drivers from financial liability in the event of an accident.

If you use your semi truck to ship goods for other farmers or ranchers, commercial insurance is a must. Commercial insurance often insures goods while they are in transit, which means each load you send over-the-road will be financially protected.

You may think that farm insurance is adequate to cover your liability as a grower. Talk to your insurance agent if you store hay for neighbors, run a CAFO, or use your own truck to ship goods in order to determine if commercial insurance should be added to your existing policy for maximum coverage. To find out more, speak with a business like Bennett Agency.