Don’t fall into the insurance short-fall by underestimating values and sums insured on your farm

Is your farm or smallholding business adequately covered?

Farmers and smallholders are being urged not to underestimate their insurance responsibilities, simply because the scale of the farm operation is relatively small. The underlying principles remain the same, making it crucial to ensure suitable insurance cover is in place, or face being left exposed to serious risk in the event of a peril occurring.

From large-scale farmer to a new smallholder at the start of a new life journey, the insurance implications do not alter, simply because of the scale of the farm unit.

flock of sheepEmma Barnes, of the agricultural insurance brokers Farmers & Mercantile comments, “If for example you graze a flock of sheep, it does not matter the size of flock, if one escapes and ends up causing a road traffic incident, the liability will be the same.

“With recent changes to personal injury law, claims costs have increased significantly in value and could devastate a smallholding or farm without adequate cover.”

Emma continues, “At the simplest level, you may have an outbuilding or shed in the garden in which you decide to house a goat, at which point the structure becomes an agricultural building and should be covered accordingly.”

Similar applies to use of machinery, value of farm buildings, value of livestock and crops. Having suitable and realistic sums insured to cover for damage or losses could be critical to the viability of any farm operation.

“Whether running a fleet of 30 high horsepower tractors, or a single vintage tractor around the yard, if the sums insured do not add up to the value of replacing the machine, you will be leaving yourself exposed to risk,” adds Emma.