What is farm insurance?
Working on the land brings as many rewards as it does risks. As a farm owner, you are vulnerable to bushfires that can destroy livestock or damage your buildings and other property; machinery breakdown which can cost you time and money; personal illness or a serious accident; or even a claim from a guest injured on your property. That’s why farm insurance can help protect your farm and its produce. This in turn will protect the wellbeing of your family and that of the people who pass through your property.
Who should consider it?
Whether you are a large-scale crop grower, livestock producer, a small family or hobby farm, farm insurance can help protect your farm. This includes your produce, livestock and the people who benefit from it.
“The total value of principal Australian agricultural commodities (crops, livestock and livestock products) produced in Australia in 2016-17 was $39,671 million.”
Did you know?
$60 billion – Australian Farm income passed $60 billion for the first time in 2016/17.
(National Agriculture Day, Food, Fibre & Forestry Facts, 2018)
In NSW alone, theft of cattle and sheep between January and October in 2017 cost farmers $2.8m and $1.4m respectively.
(The Land, ‘Thefts costs farmers millions,’ 2018)
In 2009–10, 17,400 agricultural workers become ill or were injured through work.
(Safe Work Australia, Work- related deaths and injuries on Australian Farms, 2013)
What can it cover?
Farm insurance can be tailored to cover your home and farm buildings, livestock, vehicles, equipment and more. It can also safeguard you against theft and loss of income. For example, a typical Steadfast farm pack can cover:
Type of cover
|Home property||Domestic property and belongings from defined events or accidental damage. Cover may include buildings, contents, personal effects, legal liability and/or domestic workers compensation cover.|
|Farm Property||Physical loss or damage to farm property caused by defined events or accidental damage.|
|Public and products liability||Claims by third parties for personal injury and/or property damage and/or legal costs in connection with the farming business.|
|Accident and sickness cover||Regular payments to help keep your business running if you’re injured or fall ill.|
|Livestock||Death or loss of livestock due to specified events.|
|Machinery breakdown||Damage to electrical and mechanical machinery, boilers and pressure vessels for lossor damage caused by breakdown.|
What usually isn’t covered?
Exclusions, the excess you need to pay and limits of liability can vary greatly depending on your insurer. Policies generally won’t include cover for:
- Loss or damage to property caused by gradual deterioration or wear and tear.
- Loss caused by earth movement unless the earth movement occurs within 72 hours of certain events.
- Damage caused by tenants unless the risk is accepted by the insurer.
Jason owns a wheat farm in western New South Wales. He owns some expensive farming equipment and vehicles. One night, a fire breaks out in one of his sheds, destroying a tractor and a ute.
Jason’s farm insurance covers the repairs to the shed, replaces the damaged contents, and he’s able to claim the cost of replacing both vehicles after the fire.