Employers' vs Public Liability Insurance for Farmers

A common source of confusion for many farmers is the distinction between employers’ and public liability insurance. It’s important you get this right to ensure you, your farm and your employees are protected by the right cover in the event of an insurance incident. Discover more about these two types of insurance, including how much cover is recommended.

What’s the Difference?

Both types of cover are designed to pay out if a farmer faces a compensation claim for injury or loss. The main difference between the two is that public liability insurance involves cover for claims made by a third party, whereas employers’ liability is for when an employee suffers an injury or loss. The former isn’t always a legal requirement; however, it’s compulsory for all employers to hold employers’ liability insurance. An employee is classed as anyone under the direction of the policyholder.

Why do I Need Employers’ Liability Insurance?

Many farmers claim that they don’t employ anyone, however, this is often not the case. They may not have anyone on their payroll, but sometimes a friend will help by moving some cattle or driving machinery and be injured in the process. As a result, the farmer’s friend may be unable to carry out their normal job, landing them in financial difficulties. If the farmer had employers’ liability insurance, they would be protected against their friend pursuing them for costs arising from the claim, subject to terms and conditions.

How Much Cover Should I Have?

Claim costs for injury claims are always on the rise, and with farming being one of the most dangerous occupations, farmers should frequently re-evaluate what cover they have in place to ensure they’re protecting their business against a life-changing claim. At Farm & General, we advise all our clients to have both employers’ and public liability insurance, and that their public liability cover be up to £20m.

Due to the varied nature of a farmer’s work, there are many scenarios where a public liability claim can run into the millions. One of the main causes of concern for farmers is if livestock get out onto the road and cause an accident, severely injuring drivers and pedestrians. The variety of insurance incidents that can occur make it important to have the correct level of insurance cover – it’s a very cost-effective way of protecting your livelihood and family home.

Get a Farm Insurance Quote

If you have questions about taking out employers’ and public liability insurance for your farm, it’s important you speak to advisors with expert knowledge of the farm insurance industry. For over 16 years, Farm & General have been delivering honest insurance consultation to farmers in need; we understand the challenges farmers face when looking for farm insurance and offer comprehensive policies to make sure you have peace of mind and are fully protected. Contact one of our friendly advisors today for your new farm insurance quote