Top Insurance Considerations for Farmers and Contractors

In the event of an insurance incident, farmers and farming contractors can be easily caught out and incur major losses if they do not have the right type of cover. Discover the must-have insurance policies for farmers and contractors, and the considerations they should make when it comes to diversifying their business and choosing the right insurance provider.

Must-have Policies

Employers’ and Public Liability Insurance

Employers’ and public liability should be of primary importance and focus for farmers when it comes to insurance policies. Indeed, apart from vehicle insurance, employers’ liability is the only compulsory insurance required in the United Kingdom. This type of insurance is not always straight-forward; some self-employed workers have employee status for legislative purposes, regardless of how they pay their taxes.

Public liability insurance include ‘tool of trade risk’ and is therefore highly important for farming contractors. An example of this would be when a vehicle causes trenching damage to unseen pipes and cables. This would fall under public liability insurance policy and not the vehicle’s own policy. In this instance, T&Cs must be strictly adhered to and it is vital to check whether you have the correct insurance cover.

As a specialist area of insurance, farmers should seek out an experienced farm insurance advisor for clear guidance and consultation – somebody who understands and empathises with the needs of farmers and the complexities of farming insurance. With over 70 years of combined experience, Farm and General Insurance are a long-standing figure in the farm and agriculture insurance industry. We are a provider you can rely on to give you independent and honest advice. Speak to us about your next farm insurance policy.

Environmental Liability Insurance

With focus on sustainability and environmental friendliness ever increasing, environmental liability insurance has become even more important. This often covers a range of activities; however, insurers have been known to exclude things such as agricultural spraying and the spread of human waste. Therefore, farmers and contractors should pay close attention to the environmental liability section of their insurance policy.

If the large number of legislation changes that have been made over the last 15 years is anything to go by, it is likely that environmental liability insurance will continue to evolve and include an even greater range of cover as the list of prohibited activities grows. This makes it extremely important for farmers and contractors to have a comprehensive environmental liability insurance policy.

Insurance Premiums

There is a difference in insurance premiums for farmers and farming contractors. This is most apparent with tractor insurance; there are a large number of claims made by farm contractors each year because of how often they use tractors.

How Can Farm Diversification Affect Insurance?

A basic farm insurance policy covers primary farming practices i.e., the production of crops, meat and dairy. This does not typically include things introduced as part of the diversification of your farming business (farm shops, caravan parks, golf driving ranges, farm contracting etc.) which change your insurance risk. Therefore, insurers will need to extend your insurance policy to accommodate it, normally reflected in an increase in the premium.

Talk to Us About Your Insurance Needs

Farm and General Insurance offer comprehensive environmental liability, employers’ liability, public liability, farm contracting and farm diversification insurance policies for farmers and contractors. Contact our team of expert farm insurance consultants to discuss your insurance cover needs.