Who needs farm insurance?
Farm insurance provides protection for individuals and companies operating in the agricultural sector. Farm insurance is necessary, regardless of the scale of your farm. Whether you run a hobby farm, smallholding, larger farm or country estate, the risks can be mitigated through appropriate insurance cover. Furthermore, if you have employees, it is a legal requirement to have employers’ liability insurance.
What does farm insurance typically cover?
A standard farm insurance policy includes cover for:
- buildings and contents
- machinery and plant
- arable inputs
- growing crops
- livestock.
Your cover’s specific components will depend on your farm’s unique characteristics. Additionally, farm insurance can extend to cover various vehicles, from a single quad bike to large fleets of farm vehicles. GPS equipment, trailers, attachments, and implements, can also be insured under a farm policy.
In addition to the core cover, a range of standard commercial insurance options can be included in a farm insurance policy or taken out as a separate policy alongside it. Examples include:
- environmental impairment liability cover
- credit insurance
- livestock disease cover
- fatal injury to livestock
- hail damage cover
- engineering cover for renewable energy plants like biomass boilers, wind turbines and solar panels
- special events insurance for corporate, wedding, or festival venues hosted on your land
- key man insurance
- and holiday let insurance.
Risk management services are also worth considering as they promote a safe working environment and can help lower insurance premiums by reducing the risk of claims.
What are some of the typical exclusions?
While exclusions are present in all insurance policies, it is important to carefully review and discuss them before finalising your policy. Common exclusions typically include damage caused by wear and tear and damage to third-party property under your care, custody, or control.
Is there anything else to be aware of?
Farm owners need to be aware of the risk of underinsurance when taking out or renewing a policy.
Underinsurance occurs when the sum insured on your policy is insufficient to cover the full cost of repairing, replacing, or rebuilding the assets listed. This could leave you responsible for the shortfall, and in some cases, your insurer may invoke the average clause. Underinsurance often happens when the cost to rebuild is underestimated or when policyholders fail to update their cover to reflect current asset values. Automatic policy renewal without review can also lead to underinsurance. While it is always your responsibility to ensure sums insured are adequate, our farm experts can help steer you in the right direction so that values are realistic.
Advice and guidance for your farm
Consulting an independent insurance broker specialising in farm risks is recommended to find the most suitable insurance policy for your farm. Every farm is unique, with distinct insurance requirements. Working with a knowledgeable broker ensures personalised guidance and tailored cover options.
Farm insurance can cover a wide range of diversification ventures. Whether you have holiday lets, a farm shop, petting zoo, or other diversified activities, we work with multiple insurers to identify and address the specific risks you face and protect you from financial loss.
To talk about your insurance cover or request a quote, contact your AF Insurance team by email to insurance@af.farm or call 01603 216 387.
AF Group is an appointed representative of Alan Boswell Insurance Brokers Ltd who are authorised and regulated by the Financial Conduct Authority. AF Insurance is a service provided by Alan Boswell Insurance Brokers Ltd.
