Other Lines of Insurance

Joan Bengs is an
Insurance Professional
with the
Farmers Insurance Pool.

To see the insurance products
she offers,
please click here to be taken to
her website.

Your Pool could not have found more complementary lines of insurance to support our workers' comp program and your farm operation. Let us help you determine what works best with your business plan, and your family's future.

Workers’ Comp on Myself or Disability Insurance?

Many of our policyholders question if they, as owner of the Workers’ Comp policy, should cover themselves on the policy or not; or purchase a disability policy.  An owner, partner, or corporate officer is just as much at risk for an injury, disability, or death while working for themselves on the farm; as are their employees.

First, it is important to understand who is NOT covered on a Workers' Comp policy. All of the following people are EXCLUDED from coverage unless the owner requests, in writing, to elect coverage for any of these people. If an election is made, premium is based on their payroll, the same as it is for your employees.

  • Owner (this could be a sole proprietor, partners, or officers of a corporation with 25% or more ownership interest)
  • Their spouses
  • Their immediate children
  • Their immediate parents

If coverage is elected –
An owner’s (Sole Prop, Partner, or Officer with 25% of more ownership) minimum payroll must be at least $14,560 /year.
A family member’s payroll must be no less than $235 per week worked.

Comparison of Workers’ Comp for Self vs. Disability Insurance:

Workers’ Comp Insurance Disability Insurance
  1. Will cover you if you are injured on the job, when working for yourself.
  2. Will cover medical expenses 100%, with no deductible involved. Workers’ comp supersedes your health insurance policy, if it is a workers’ comp injury.
  3. You are eligible for 2/3 of lost wages if unable to work for 3 calendar days or more (considered “disabled”). Short “waiting period” to secure wage replacement benefits.
  4. Benefits are tax free.
  5. Benefits are subject to a maximum number of weeks, depending on the degree of disability.
  6. If electing coverage on self, then your wages must be included since workers’ comp premium is based on gross payroll.
  7. Provides a death benefit for spouse and dependent children; as well as up to $15,000 in burial expenses.
  8. Social Security benefits and Workers’ Comp benefits may offset each other depending on the situation.
  1. Protects your biggest asset – your ability to earn a living!
  2. You are 3½ times more likely to become disabled during your working years than from death.
  3. You design a plan to meet your budget. Some coverage is better than none!
  4. Benefits will be paid if injury or sickness causes your disability; whether you are on OR off the job. 
  5. Benefits are tax free.
  6. Medical History is required when applying for disability coverage.
  7. You choose the “waiting period” before benefits are paid. (30, 60, 90, 180, 365, or 730 days)
  8. You choose the benefit period (6 mos, 1, 2, 5, 10 Year, or To Age 65)
  9. The percentage of earned income being replaced is dependent on the benefit period you choose.
  10. Several riders are available to help increase the monthly benefit amount.
  11. As a business owner, the Business Owners Allowance (BOA) is an option to increase your basic monthly benefit amount.
  12. Some companies may offset when workers' comp coverage is also involved.

Can your operation survive an injury, or death, or disability of a "key" person in your operation? Call on us; as we have the tools and resources to help you . . .

  1. Assess if the owner of a workers' comp policy should elect coverage or if a disability policy is the answer. We can now provide disability coverage for you through the Pool.
  2. Analyze how your farm operation will survive if you die or are disabled.
  3. Determine the impact on your family to keep the operation viable. Will assets need to be sold to cover expenses? Will your family have the coverage to maintain the lifestyle you had provided for them?
  4. Understand how workers' comp, disability or life insurance and estate planning can be utilized to meet your needs and wishes for your family and business.


DISCLAIMER NOTICE

The information contained on this Web site is presented in summary form only and intended to provide broad insurance information. The information should not be considered complete and should not be used in place of a consultation or advice of your insurance professional. Information obtained from this Web site is not exhaustive and does not cover all insurance issues. Should you have individual insurance questions, please feel free to contact the professionals at the Farmer’s Insurance Pool.