WHAT INSURANCE DOES A FARM NEED?
Small or large, farms come in all shapes and sizes and all require at least one form or another of farm insurance to fully protect their business, farm, and livestock. Farm insurance provides essential security for the multitude of components that constitute a working farm, ensuring farmers’ livelihood and assets are protected and insured.
As there are so many different types of farms in the UK, sometimes specialist farm insurance is what is needed and so careful consideration must be given to each farm. Farm insurance policies include:
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Dairy farm insurance
Arable farm insurance
Farm equipment insurance
Because the precise components of each farm may vary, it is important to acquire an insurance policy that is specifically tailored to your farm. Unlike many everyday insurances which have a broad scope of coverage, when it comes to farms, the needs and requirements of each type of farm are different and these needs and their assets need to be covered.
A farmer running a livestock business will have different requirements to a dairy farmer for example. Equipment and tools on the farm in question will also vary from case to case and this is important to remember. One farm may for example require straw spreading equipment with another requiring cattle crush equipment and so on.
What Does Farm Insurance Cover?
Also known as ‘agricultural insurance,’ farm insurance is typically provided in the form of a package specifically tailored and personalised to each farming business.
Although personalised and dependent on the size, nature and components of a farm, the insurance policy itself usually offers cover for some standard agricultural features such as:
Property Cover – Covering the damage of farm properties from incidents such as fire, collapse of building, vandalism, theft, transportation, flooding and water ruptures. This includes cover for other essential features of the farm including deadstock, machinery, home buildings on the farm and their relative contents, farm buildings and properties which may be let on the farm
Environmental Pollution – Farms by their very nature, are host to potentially harmful chemicals and pollutants including pesticides and red-diesel to name but a few. Many farm insurance policies will at least to some extent cover damage to property as a result of incidents such as fuel and chemical spills. The insurance for this means the farm is reimbursed for the amount of the property that is destroyed and potentially costs incurred due to loss of otherwise essential chemicals
Livestock – Covers damage to various types of livestock, including chicken, cows, pigs and others that must have been specified when applying for a farm insurance policy. The insurance covers many causes of loss of livestock, dependent on the type of package; fundamental causes included in most packages include flood loss and damage, theft of livestock, livestock attacked by a wild animal or animals, drowning of livestock and incidents of accidental shooting
Employers Liability – Covers workers under the employment of the farm with regards to injuries or illness as a direct cause of the work
Public Liability Cover – This coverage will cover property damage to the farm caused by the general public and injuries sustained by the public and visitors on or directly due to the farm. Examples include medical payments for those injured on the farm, or reimbursement for accidental damage done to the farm
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Products in Transit – Coverage of this nature will likely include damage sustained to livestock and other farm goods during transport. For example, a traffic accident resulting in the death or escape of livestock inside the container vehicle
Product Liabilities – If a consumer becomes injured or falls ill due to a product of the farm, product liability insurance provides protection against the damage done to consumers from said product and could cover some or even all of the legal costs if incurred
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Accident Insurance – This will entail financial cover for a farmer’s family if they are injured or killed through their work on the farm of as a result of work being undertaken on the farm
Farm Produce – Covers damage done to produce of the farm, which is likely to include the likes of grain, hay and straw, which may for example be damaged by a collapse of a building, vandalism and theft
Diversification – This level of cover is specific to modern farms departing from conventional agricultural methods and moving towards new farming methods and farm business practices such as renewable energy, wind turbines and holiday lets. Farm insurance can be tailored to the specific risks associated with this modern line of farm production.
It is important to insure your farm machinery and vehicles