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They say the best insurance policy is the one you never have to use. But inevitably over a lifetime a farmer will need to claim off their insurance.
While it is easy to look at the cost of insurance, it is far more important to look at what value you are getting from that cost in case of a claim. Never before have farmers had so much choice when it comes to insurance.
In this Focus, we talk to the three farm insurers – FBD, Zurich and newcomer AXA. The past 12 months have seen many farmers use their farm insurance, particularly as a result of extreme weather events such as Storm Ophelia and Storm Emma.
The main damage as a result of these storms has been to farm buildings. It is a timely reminder that farmers have their farm buildings adequately insured as the cost of building has increased significantly in recent years.
In this supplement, we also look at the rising cost of mart insurance where most premiums have increased between 20% to 30% over the past year alone. While there are high claims and the awards system needs to be questioned, there is also a lack of competition where few insurers have entered that market. It is questionable whether regulation will solve this problem, but it does need to be looked at.
Finally farmers need to look at themselves and ensure they have adequate personal cover. Given that there have been more farm deaths this year than road deaths, farmers should continue to be extra vigilant and careful. Given that next week is Farm Safety Week, please exercise caution on and around farms to avoid becoming another statistic.
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