Whether you have a small farm, dairy, arable or livestock, or a huge commercial dairy farm, insurance is vital.
It is problematic enough being a farmer, without having to pay out should something go amiss, like say your crops are destroyed by hail storms, or your livestock go astray and die, your machinery breaks down and the milk supply is disrupted. Farming is a business with many hazards; therefore, it is vital that you buy the correct insurance to protect your livelihood. An insurance policy can be tailored to suit the particular needs of your farm.
What is Necessary with my Farm Insurance Cover?
Premiums differ immensely dependent on the size and kind of farm you have, and the level of risk exposure. A policy can be made to suit your farm’s set needs.
Here are some kinds of cover you may wish to consider.
- Farms are hazardous places; should an employee get injured and the farm is found to be at fault, you are going to need employers’ liability insurance, with a typical recommended limit of £10m.
- Public and product liability protects your farm should a member of the public get injured by a farm product or on your farm premises. The usual limit on standard policies is approximately £5m.
- Environmental liability regulations stipulate that you are responsible for cleanup costs should you accidentally contaminate the soil or water on your property or on the surrounding land. Should you consider that your farm is at risk, ensure that your policy includes environmental liability, up to a million.
- Property insurance covers farm buildings and their contents, including your home. Fly tipping, which is the illegal dumping of rubbish, poses a huge problem for farmers. Hence, specific insurance companies add in clean up costs sustained after illegal refuse dumping. Property insurance can also provide cover for your vehicles, computers and business money.
Events Your Farm Insurance can Cover
Health and safety is undoubtedly a key priority on a working farm, however, accidents can happen.
- Personal accident insurance usually pays a weekly benefit should you, an employee or a member of your family, be unable to work due to an accident or sickness. There is usually a time limit on payouts and it is vital that you check the small print for any exclusions.
- The Agricultural Wages Act stipulates that farmers pay most full-time employees when off sick. The majority of farm insurance policies enable you to purchase extra protection should you have to pay out.
- Livestock, pigs, sheep, cows or bulls are normally the farmer’s most valuable assets and sufficient insurance is of paramount importance. A good policy is going to insure livestock in the event of fire, lightning, storm, straying and death due to injury, illness or breeding.
Moreover, you can arrange cover for certain illnesses, like foot and mouth, Brucellosis and TB. Should you breed cattle, you can purchase insurance if the bull is permanently impotent, infertile or incapable of performing due to illness or injury. You may also wish to check whether or not your livestock are insured when in transit.
A terrible hailstorm can damage crops instantly, possibly costing you your livelihood. Hail damage insurance is also a necessity for specific kinds of crops. You can normally insure all your crops or you may be able to negotiate a lower premium should you opt to cover just some of your crops, may be the kind that are more susceptible to storms.
What happens if your milking machine stops working, or there is a mechanical failure in your grain store? Today’s farmers are heavily dependent on machinery. Therefore, it is vital to check you are covered for breakdowns which can jeopardise your livelihood.
Standard home or business insurance cover is unsuitable for farms. However, there are specialist providers which provide farm insurance.