For insurance purposes any activity you do for another farmers business can be called contracting, whether this be for reward or a favour for a friend you may still become liable at law for any damage to property, produce or persons.
Any vehicle registered for agricultural or forestry use with the DVLA
arable farm insurance
Specialist sections on farm insurance policies that cater for the specific needs of arable farmers, these can include useful additions such as hail cover for crops in the ground.
The vendor takes the risk that the animal they are selling is fertile for breeding. If your vendor is not able to provide this assurance then it is possible to take out fertility cover for your bull, providing they are within the age limit.
Cover that will pay for the repair or replacement of a vehicle if it is accidentally damaged. The cover also includes your liability as a driver to any third party property damage or injury.
The financial protection provided by your insurer for the potential losses to your business that you have chosen to insure against.
Crop disease is a risk that you cannot insure against.
Cover for certain livestock diseases is available such as TB and Foot and Mouth but there are usually many conditions involved
farm based business
Farmers and Mercantile will look at any Farm/Rural based business, but we also understand that many farmers do more than just farm with many different and innovative diversifications. We aim to cater for all of these.
These will include all of your buildings that contribute to the running of your farm business, e.g. grain stores, milking parlours, hay barns etc. Your residential buildings are not classed as ‘farm buildings’ on your insurance schedules and will have their own home and contents section. Most tenant farmers are not responsible for insuring the buildings that they use.
‘Stubble to stubble’ contracting where you manage all aspects of growing the produce and land management. In the eyes of the insurer this form of farming is seen to be no different from farming your own land.
farm fleet cover
A policy for multiple vehicles that can include Agricultural, Commercial and Private vehicles belonging to your business, directors and partners. These are usually subject to higher discounts, multiple drivers and offer much better value than individual vehicle policies. These policies can often include free cover for your trailed farm implements as standard.
Farm inputs are usually covered under the farm property section, see ‘Fertilizer insurance’ for an alternative way of insuring your inputs.
farm management consultants
As with all types of business there are consultants that can be brought in to help you to increase your profit margins. Farming is no exception and farm management consultants can look at all areas of your operation to save money or increase output.
With prices of fertilizer, and thefts on the rise it is essential that you keep your fertilizer insured and for the correct values. It can be insured under your deadstock section, or automatically when you take our Business Interruption/Loss of Revenue cover for Arable Farming as all inputs are covered.
Your obligation as an insurance customer to reveal all material facts. A material fact is one that is likely to influence an insurer in the acceptance and assessment of the proposal. Non disclosure could invalidate your policy, e.g., claims history, young drivers, endorsements on your licence etc.
future market value
This is the price of your produce at your intended time of taking it to market. If you breed livestock the most effective way to insure your young stock is to insure them against their future sale value, whether this be as stores or fat stock. Ask to insure your young stock under the Business Interruption, or Loss of Revenue section on your policy.
gaps in cover
A gap in your cover may be an optional peril (such as storm or theft) that you do not have on your item of property. In some extreme cases a barn, building or liability section might have been missed off the schedule. A thorough annual review of your insurances by a professional should keep your cover up to date and will prevent gaps in cover.
Your buildings are a standard asset that insurers are happy to cover, subject to a few excepted perils e.g. Terrorism. Risks that are not insurable would include any property that was not owned by yourself, unless you were contractually obliged to insure it.
You cannot insure against every risk to your business. War, sonic booms and mechanical breakdown (not including warranties) are all things that could potentially cause a loss to your business but it is not possible to get insurance policies to cover them.
Your right as the insured to claim back any financial loss that you have sustained from your insurer, provided that you have taken out the correct cover, paid the premium in full, and that the loss was not due to any exclusions in your policy. If there is an excess on the policy you will be paid net of your excess and the tax.
key man insurance
Protects a farm business from the financial loss sustained following the sickness, injury or death of a person key to its success.
As there are government schemes in place to compensate farmers for a percentage of an animals worth after a loss by certain diseases, some insurance companies will offer insurance that will pay the difference up to (but not exceeding) the animals market value, or a compensation amount for re-stocking
livestock farm insurance
A tailored insurance schedule that caters for the needs of the livestock farmer, with features such as livestock cover, bull mortality cover, uncollected milk cover and cover for milk plant machinery etc.
maximum value stored
This is can be another way to value your stored produce. For example; If you produce 1000 tonnes of grain in a year but the maximum that you are responsible for storing is 300 tonnes, then you would only have to insure against this amount for perils whilst stored such as fire and theft.
on farm review
We believe that all our clients are entitled to have their insurances reviewed every year by one of our insurance experts. Businesses change every year and your review will ensure that your insurance cover continues to reflect the needs of your farm.
When your sums insured on an item of property are more than the market/ replacement value. This can be a waste of money for the policyholder as they will pay more premium and still only get paid for the items replacement or market value.
The money you pay annually in return for your insurance policy to cover your business.
product liability insurance
Insurance for your legal liability in regards to any third party injury or property damage that may occur from your faulty produce, or products.
public liability insurance
Insurance for your legal liability in regards to any third party injury or property damage, that may occur from your insured business activities.
The sums insured of your buildings are based on their rebuild not their market value. 20 % is also added on to take into account site clearance and professional fees. Make sure that you have the correct rebuild values on your buildings so that you are not disappointed in the event of a claim.
As well as being a popular board game, ‘Risk’ is also a measure of any loss your business could sustain in relation to the likelihood of losses occurring.
It is possible for arable contractors to insure against loosing a clients Single Farm Payment in the event of them breaching cross compliance regulations.
specialist agricultural insurance brokers
see specialist farm broker
specialist farm broker
A broker is an independent insurance expert that acts solely for its client and can search the whole market place for the most suitable and competitive products. Farm insurance is a specialist area where a knowledge of farming as well as insurance is essential to giving the farmer the correct cover. Always use a specialist farm insurance broker e.g. Farmers & Mercantile
specialist Farm Insurer
An insurer that can specialise in farming businesses with a department of underwriters and claim handlers that understands the nature of farm insurance e.g. Aviva (formerly Norwich Union).
standard of management
Insurance companies prefer to insure neat, tidy and well managed risks. The general condition of your farm buildings, your health and safety precautions and the condition of your livestock etc. are all aspects that give an impression of your business and your likelihood of having an accident, loss or claim. As a rule a better managed farm should attract a more competitive insurance premium.
Many farm insurers will put different items of your insurance (such as home, business and motor) on different policies often with different renewal dates. We believe in trying to put our farmers on one single policy that encompasses all their needs. This cuts down on paperwork giving you only one renewal date to remember.
Under insurance means that an item is insured for less than its true value/replacement. With regards to buildings, deadstock, tools and livestock this can be lead to a reduction in any claim paid out as all these are subject to ‘average’ rules. Here is an example; your barn burns down and costs £200,000 to rebuild after site clearance and professional fees. You have the building for a Sum Insured of £100,000. Because the building is under insured your insurance company will only pay you a direct proportion of the total claim, which in this case is 50%. You would only receive a cheque of £50,000 from your insurer for this claim. To receive the full amount in the event of a claim make sure you have the correct sums insured on your schedule.