A lot of hard work and resources go into creating crops and protecting the land that provides the nutritional needs of the world. Professional Farmers know the value of insurance in protecting their investment in crops and livestock from threats from unpredictable weather, freak accidents and fire.
Farm insurance can cover multiple variables and the best way to find out what you need for your situation and get the most competitive solution and price, is to seek advice from an insurance broker. This article gives you a sneak peek at what all a farm insurance might include and an idea of how much it might cost.
What does farm insurance cover?
Just like most insurance models there are specific variables that a farm insurance solution can cover. It’s up to your discretion which components you want to insure or ‘self insure’(use risk management to try and mitigate an incident from happening and pay out of pocket if it does). Having a professional insurance broker will help you to understand what risks you should prioritise with your insurance solution.
Here’s a list of specific farm insurance covers – the availability of some of these coverages may vary based on the location your farm is situated in.
Home & contents – Often, though not always, farm insurance also covers the house where the farm owners live to protect your home and belongings from natural disaster, theft or other accidents.
Farm property – whether it’s livestock, machinery, buildings or even silage and grain, farm property insurance can help protect your assets.
Farm liability – This component helps protect you from loss of farm due to a third-party liability claim, such as an injury to another person or damage to another person’s property.
Crop coverage – Putting a crop insurance policy in place can help protect your income in the event of fire, hail, livestock intrusion, overspray, transit or storage loss.
Farm machinery – Protect your agricultural vehicles from damage, theft or accidents with a farm motor insurance solution.
Weather insurance – Weather insurance could be used to protect your business against a number of weather indices using objective, independent, meteorological data so there is no need for loss adjustment or claims negotiation.
There are also a range of other optional bolt-ons for farm insurance solutions, depending on your unique set up.
Professional insurance brokers with a local presence will be better equipped to understand the risks your farm faces and help you map out a better insurance strategy.
An average farm insurance solution is around 10% of the sum insured and clients can decide their length of cover sum insured and rainfall limit, which of course depend on things like the size and scale of your operation. Insurance brokers have access to a wide range of policies and prices that are NOT available online or through the direct market, so it’s worth getting a free quote to ensure you’re getting the best value for your money (with the added benefit of expert advice).