Farming can be risky, rewarding, yet dynamic. Since the year 2000, Australian farms have undergone significant changes. Dairy farms have moved from pasture-based to intensive feeding systems, sheep numbers have shrunk, the beef industry is more productive – but the changing climate presents more challenges.
Here are some of the key risks to managing a farm and options to protect against an increasing range of liabilities.
The Nature of Farm Management Risks
What is Farm Management Liability Insurance?
Farm management liability insurance offers coverage for legal liabilities and risk related to managing and operating a farm business. It serves as a shield against the many common risks in agricultural operations. Those risks often relate to mismanagement, legislative breaches, or wrongful practices.
Such a policy protects your business against risks beyond the standard public liability insurance coverage for farms.
Key Components of Farm Management Liability Insurance
Farm management liability insurance could cover
- Farm labour, such as through labour hire and contractors
- Farm export insurance, which could include marine and trade credit cover
- Property damage, including buildings and animals
- Personal injury, including emergency first aid and treatment fees for others, such as workers, visitors, or the public; slips, trips and falls, animal-related injuries
- Farm machinery or equipment causing damage
- And there are other scenarios too
Farm management liability coverage can differ, so it’s essential to understand the distinction between ‘claims occurring’ and ‘claims made’ policies. Public liability policies are typically on a ‘claims occurring’ basis, meaning they cover incidents that happen during the policy period, regardless of when the claim is made. In contrast, management liability policies are generally on a ‘claims made’ basis, meaning they cover claims made during the policy period, regardless of when the incident occurred.
Why Farm Management Liability Insurance is Essential
Farm management liability insurance is valuable for financial protection against lawsuits and claims. It helps ensure legal compliance with employee and public safety, enhances business continuity during unforeseen events, and provides peace of mind by shielding farm owners and managers from various risks.
How to Choose the Right Farm Management Liability Insurance
Choosing the right farm management liability insurance requires understanding your farm’s unique risks. Coverage depends on factors like farm size, crop or livestock types, and specific hazards.
As your broker, we can help protect your assets and livelihood. Let us review your current insurance and suggest tailored options that fit your budget and risk tolerance. We’ll work to negotiate the best premium and coverage deal for your farm business.
If you want to know more about the importance of farm management liability coverage CLICK HERE, or contact us today to discuss your individual circumstances.