Small farming operations require a unique set of insurance covers to protect against potential risks and losses.
Unfortunately, we’ve come across many small farm owners that have been caught out by either being inadequately insured, covered by insurance policies more suited to large scale commercial farms or covered by a standard home & contents policy which may not afford farm liability cover. Whether you’re growing crops, raising livestock, or producing honey, it’s important to make sure you have the right insurance in place to protect your farm and livelihood.
Here are five tips to help ensure you’re properly covered under your small farm insurance policy.
1. Understand the specific coverage you need
Not all farm insurance policies are the same, and it’s important to understand the specific coverage you need to protect your operation. This might include coverage for fencing damage, livestock loss, or liability (personal and farm). Make sure you understand the coverage options available to you and choose a policy that meets your specific needs.
2. Be aware of any optional benefits or cover extensions
Depending on the type of farming operation you run, you may need to select optional benefits to add to your policy to provide additional coverage. For example, if you’re conducting farm stays or farm hosting on your property, you may need additional cover to address any liability exposure associated with conducting these activities.
3. Review your policy regularly
It’s important to review your policy regularly to ensure it still meets your needs as your operation grows and evolves. This is also a good time to review your sums insured to make sure cover is keeping up with the cost of inflation. You may also want to talk to qualified builder to understand the replacement costs of your home and farm buildings or speak with a local machinery dealer to see whether your farm motor sums insured are in line with current market values.
4. Understand your policy limits
Make sure you understand the policy limits applicable to your selected cover. This will help you determine whether you have enough coverage to protect your operation in the event of a loss.
5. Review your excesses
It’s a good idea to review the excesses on your policy so you understand the minimum or standard excess and then your ability to increase your excess. You can increase your excess for additional premium savings, but it is important to ensure that the final excess selected is proportional to the sum insured of the asset.
Whilst this list is not exhaustive, we hope that by following these key tips, it will assist with ensuring you are properly covered under your small farm insurance policy and help to avoid any unwelcome surprises in the event of a claim. Remember, it’s always better to be safe than sorry.
At Farmstyle Insurance we understand your farm is more than just an asset. If you’re unsure about your coverage, get in touch with the small farm insurance experts at sales@farmstyleinsurance.com.au