Farm Diversification Insurance
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Over the last 15 years, led by economics, modern farming has diversified at a pace the Insurance Industry was previously not accustomed to keeping up with. This has only emphasised the need for an independent broker to intervene between the insurer and the client to create policies suitable for farms and diversification businesses alike.
Today, we see that many of these diversifications have grown to a much greater size than the original farm business.
Fundamental to the services offered by Farmers and Mercantile is our ability to provide the necessary Insurance for diversified farm businesses. We estimate that approximately 40% of our clients have a form of a diversification venture, these vary enormously and include:
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- Bed & breakfast
- Bio Diesel production
- Camp-sites
- Caravan storage
- Corporate entertainment
- DIY livery
- Farm machinery manufacture
- Farm shops
- Fencing
- Haulage
- Holiday Lets
- Landscape gardening
- Letting of commercial & residential buildings
- Open farms
- Retailing of meat and dairy products
….to name a few
Of most importance, if you are contemplating a diversification venture, is that you include your insurance cost and availability in the research stage of your business plan, this means talking it through with us and gathering the necessary advice and information.
We advise clients and negotiate terms on their behalf, in some cases shaping the direction the business will go in order to keep the insurance cost under control and the necessary risk management in place to appease the insurers.
We expect to see the diversification market, especially rural tourism and leisure, expanding rapidly over the next decade and we are working hard to provide the insurance advice and products required to cover this ever changing market.
In many cases we can accommodate the diversification insurance on the existing farm policy, this helps to keep premium costs down. If and when the diversification turnover exceeds 50% of the farm turnover we will then set up a separate policy.
Other Insurance: Arable Farming, Livestock Farming, Mixed Farm