What Insurance Do Farmers Really Need?

Farms are dangerous places, with a huge number of accidents involving vehicles such as quad bikes, tractors or other farm equipment. Recent research shows farm vehicles account for 50 per cent of accidents on Australian farms.

Aside from obvious perils such as these, there are many other risks that require insurance cover on farms.

Most perils are covered by a ‘farm pack’ policy, which can include multiple policies such as public liability, property and business continuity. Insuring the buildings on the property must be a priority.

There may be more than one house on the property, as well as other farm buildings. Additionally, you need to insure farm machinery, as well as motor vehicles.

If the farm has more than one property, it either needs multiple building and contents policies, or the contents and property policy must cover multiple buildings on the premises.

In other instances where the building does not carry much value, the farmer may decide not to insure the property. Sometimes it’s a matter of making an economic decision about the property. Risk mitigation is hugely important in agriculture and much of this comes down to properly maintaining all farm equipment and machinery.

It’s also essential everyone involved in the farm, including children and family members, receive proper safety briefings when it comes to using farm equipment.

There are a number of choices farmers can make when it comes to  insurance. Public liability insurance is a must and covers the farm for accidents, including those involving animals.

In addition, it’s possible to obtain comprehensive insurance or just third-party liability insurance.

A farmer could opt to take out cover for fire and theft.  It’s also an idea for farmers to take out personal accident insurance, which is like income protection insurance.

Some farmers will choose to self-insure, but there are many downsides to this approach.

Aside from the insurances covered in the farm pack, there are a number of other insurances specific to agribusiness farmers need to consider:

 Farm motor and machinery insurance
There are several choices farmers can make when it comes to this insurance. For instance, it’s possible to take out comprehensive insurance or just third party liability insurance. Another option is to take out cover for fire and theft.

 • Crop insurance
This insurance can cover farmers in the event of a natural disaster such as a fire destroys a crop. It is usually only available as a specialised type of insurance.

Insurance should protect the policyholder from accidental damage to buildings and property including fences and immobile machinery, as well as hay, silage and grain.  

Farms are complex operations with a variety of potential risks. It pays to work with your Insurance broker so that you are properly protecting your property, and at the same time take a commercial approach to insurance.

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