Running a farm can be a risky business, no matter the type of operation or where you’re located. It’s essential that you protect your buildings, staff, stock, machinery, and vehicles with a specialist farm insurance policy – ensuring you have peace of mind that your livelihood is protected.
But it can be difficult to know where to start when arranging insurance for your farm, so we’ve put together a guide to some of the most frequently asked questions.
Q: What is farm insurance?
A: Farm insurance protects individuals and companies who operate in the agricultural sector. A typical farm insurance policy would cover the farm’s buildings, equipment, machinery, vehicles, stock, crops, and staff, and often consists of a variety of different insurance products selected to cover the individual risks the customer is exposed to.
Q: Do I need farm insurance?
A: Whether you run a hobby farm, smallholding, larger working farm, or country estate, there are risks involved which farm insurance can protect you from. Further, if you have employees it is a legal requirement to have employers’ liability insurance, so you will need this insurance as a minimum.
Q: What covers usually make up a standard farm insurance policy?
A: A typical farm insurance policy will include cover for buildings and contents, machinery and plant, arable ‘inputs’ and growing crops, and livestock. The specific covers that you have will depend on your farm.
Farm insurance can also include vehicle cover for anything from a single quad bike up to a large fleet of farm vehicles. You can cover commercial, agricultural, and private vehicles, as well as GPS equipment, trailers, attachments and implements.
There are also a range of standard commercial insurance covers that can be included within, or in addition to, a farm insurance policy. This includes business interruption insurance, loss of revenue cover, employers’ liability and public and products liability; directors’ and officers’ liability; personal accident and sickness; goods in transit; commercial legal expenses; holiday home insurance; and household buildings, contents and personal belongings.
Q: Are there any add-ons I might need to consider?
A: A range of bespoke covers can be added on to a standard policy and as an experienced broker we would talk you through the more niche policies that may be relevant to your business. For example you could add on, environmental impairment liability cover; credit insurance; livestock disease cover; fatal injury to livestock; hail damage cover; engineering cover for renewable energy plant such as biomass boilers, wind turbines and solar panels; special events insurance if your land is used as a corporate, wedding or festival venue; and key man insurance, which protects a farm business against financial loss resulting from the sickness, injury or death of an individual who is key to its success. Additionally, risk management services should also be considered as these ensure a safe working environment and can help to lower your insurance premium through reducing the risk of a claim.
Q: Are there any common exclusions I need to be aware of?
A: All insurance policies have exclusions, these should be discussed with you and carefully considered before the policy is taken out. Two of the most common exclusions are damage caused by wear and tear, and damage to third-party property that’s in your care, custody, or control.
Q: How much does farm insurance cost?
A: Premiums will vary according to each policyholder’s individual circumstances. The main factors that would be considered are the size of your farm, the level of cover chosen, and your claims history. A record of comprehensive risk management can help to keep insurance premiums down by reducing the risk of needing to make a claim.
Q: How should I go about finding the right policy for me?
A: As with all businesses, every farm is unique and will have different insurance requirements. The best way to get the right insurance for your farm is to consult an independent insurance broker that specialises in farm risks.
Q: What types of diversification can be covered?
A: We have a wide selection of insurers that can be used to place diversified risks. From holiday lets, to farm shops and petting zoos, we can identify the risks that you’re exposed to and arrange suitable insurance to protect you from financial loss.
Get in touch with your AF Insurance team on 01603 216 387 or insurance@af.farm.
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.
