Farm Insurance for Primary Producers has become more complex over the years. With the influence of more legislation, farming is now definitely a business venture to be protected from litigation irrespective of the lifestyle offered.
Your understanding of the Workplace Health and Safety legislation is critical to ensuring that you have other complimentary general insurances in place and also cover for Fines and Penalties occurring from WHS breaches which are not covered under your farming public liability policy.
Are your main tools of trade covered correctly and are you able to ensure that your farm can continue planting, milking, harvesting etc should you have a major loss of property or equipment at your farm?
Rural farm insurance has still continued with a package type arrangement however the exposure to your business has increased and is not necessarily covered by the typical farm insurance arranged.
The number of traditional farm insurance providers has shrunk dramatically however they still focus on the key areas of farming activities whilst providing cover for other activities such as contracting, product manufacture, farm hosting, accommodation etc.
Insuring your house and its contents doesn’t need to be complicated, however we are amazed at how many farm houses are insured incorrectly to replace them and also for the incorrect policy conditions. Our brokers assist with setting your rebuilding sum insured including clean up and removal costs, temporary accommodation and much more. We are not registered valuers but use industry tools to establish a starting point rather than “guessing” the appropriate sum insureds. Some insurers still impose under-insurance penalties which can severely impact you in the event of a partial loss claim. e.g. roof damaged in storm
Farm Property Insurance
Each insurer has a different approach to what is included in this section and it can also include business interruption costs, transit and theft covers. In its purest form it is where we insure your farm buildings, their contents (which is your tools, stock (chemicals), produce and stationery equipment – but not motorised machinery or implements) and also specify any farm above ground improvements such as Windmills, high tanks, feeders, troughs, fencing and hay etc.
Due to the differences between the insurers, the policy sum insureds have to be custom nominated to suit the insurer and their wording. One size doesn’t fit all.
Farm Theft Insurance
As a general rule this is where we cover your farm contents for theft or burglary. Different insurers apply different excesses depending on the situation, type of cover and whether the premises are locked as well. Some insurers offer the ability to cover motorised machinery here as well including bikes, quads, tractors etc and we also look at the definition to ensure electric fencing and ‘out of shed’ items are noted and covered.
Farm Liability Insurance
This is arguably the most talked about section of the farm insurance package and often getting your head around legal versus moral risks is not easy. The short answer is that it covers legal expenses and awards for personal injury and property damage to third parties arising from your business activities (anywhere in Australia – including shows etc) Easy to say, however there are exclusions which w
e go through with you to ensure you understand the policy limitations with regards to property in control, unregistered vehicles (please read out motor liability information), watercraft, workcover and other exclusions.
As a minimum we do not consider limits of indemnity less than $10,000,000 and this is the minimum usually required to get stock permits, roadside grazing permits and to gain entry into agricultural shows or events.
Farm Transit Insurance
An often overlooked section but powerful in its simplicity it is also included up to $10,000 by some insurers as part of their farm insurance package automatically. The cover is usually cover for fire, flood, collision and or overturning of the conveying vehicle and some insurers extend this cover to theft and loading and unloading as well. The insured interest usually refers to stock, chemicals, produce, livestock and sometimes machinery.
Due to the nature of the cover and its limited cover and exposure it is often cost effective to cover your truck or farm utility load of chemicals or livestock etc.
Farm Continuation Expenses
This area is critical to continuing your farming activities but nearly always not mentioned by the Broker and not known about by the farmer. This section covers increased cost of working expenses relating to continuing your ‘normal’ farm activities following a claim under the policy usually on the farm property or farm motor sections.
Example – Your wool shed is damaged just prior to shearing and you need to transport or drove them to a nearby shed for shearing incurring droving/transport costs, fees to the shed owner, additional costs to the shearing contractor and team, cleanup costs to ensure no disease spread etc. Without this cover you need to provide for these expenses out of your own cash reserves and ultimately out of your wool check.
Alternatively think of your Dairy, Header etc and what impact a loss at your peak production time would have on your income.
Farm Machinery Breakdown Insurance
Depending on your farming operations you may be relying on switchboards, wiring, pumps, generators, cold rooms, sorting equipment, electronic equipment and more. It can comprise a critical component of your income producing income and looking at the cost versus exposure versus claim history is good risk management practices. Fusion and Breakdown cover are now usually excluded in the Farm Property Insurance section and the cover is really only an external damage cover to work in conjunction with the machinery breakdown cover (internal damage).
Farm motor insurance is a broad coverage enabling you to cover your private sedans and wagons along with farm utilities, trucks, tractors, irrigators, mobile plant, augers, quad and motorcycles and much more. Depending on the cover required it is sometimes cheaper to take full comprehensive cover on items rather than a separate fire and theft cover.
All registered vehicles should have at least third party property damage (TPPD) cover to compliment the Compulsory Third Party (CTP) cover for personal injury in the registration. Please check to ensure that all vehicles that go on gazetted roads, stock routes etc are conditionally or fully registered as require by State legislation.
If you are contacting we need to note this on most policies and depending on the turnover, range of activities and locations may have to arrange separate cover to correctly protect you away from your farm.
Like most other farm insurance there is a number of options to insure livestock depending on what cover you require and why you are insuring them. This ranges from a basic fire cover up to full mortality and loss of use cover for specific stud animals. Options can also be arranged for unborn calf, semen straws and other AI equipment as well to protect your investment.
Some livestock covers are arranged at fall of hammer however you need to ensure you know exactly which cover has been arranged and for how long the cover is. e.g. Mortality and only for 3 months, when you can get Mortality including full loss of use for 12 months. Speak to us to learn more about your options.
Premium Funding Options
If you require an insurance broker who will visit your site, educate you on your insurance exposure and arrange an insurance
program to suit your needs then Insuring theProduct is your insurance broker for rural risks.
We develop long term relationships with our clients and ensure that we understand your farm and what activities you undertake and sometimes arrange. E.g. bike riding, hiking, host farming, quarry activities etc.
Nothing can replace professional expertise advice from an experienced Specialist Insurance Broker.
To arrange a consultation with our Farm Insurance specialists either contact us today direct on 07 5313 7871 or complete the short form below.