Farm Production InsuranceProvide comprehensive cover for your property and operations.
Welcome to the Risk Management on Farms webinar!
Comprehensive insurance package for your farm
Farm Production Insurance provides comprehensive cover for property and operations. It can also be used to insure subsidiary occupation of farming.
Depending on your needs, you can insure
- property (such as production buildings, products and accessories, machinery and equipment, motorised machines, production animals, fur farm property)
- the farm's finances through General Liability and Legal Expenses Insurance in case of compensation liability
- your own income if an interruption to your farm's operations causes extra expenses.
Insuring farm property
Property insurance is a key part of Farm Production Insurance. You may insure either movable or real property and animals. Property insurance provides cover, according to your needs, for farm buildings, products, accessories, machinery and equipment.
Property insurance offers comprehensive cover for your farm's property. It cover most and the commonest phenomena that threaten production, such as fire, explosion, electric phenomenon, lightning, theft, vandalism, leakage and storm. It also covers other sudden and unforeseeable losses. They may include breakage of movable property, machinery and equipment, or water used for washing being mixed with milk owing to a faulty equipment or improper use.
Extra expenses also covered
Significant extra expenses may occur if your farm's operations have to be continued with temporary arrangements as a result of property losses. Expenses may occur, for example, if you have to rent a building or use a subcontractor when a loss prevents you from using your own building or machine. These extra expenses are also compensated from property insurance.
Property insurance covers environmental damage if they were caused by a coverable property loss, such as a broken oil tank. Environmental damage affecting the soil covers expenses arising from soil examination, cleaning and removal, up to an agreed amount
Insuring production animals
Animal Catastrophe Insurance covers serious production animal losses. Insurance can be taken out for cattle, pigs, sheep, goats, poultry and certain fur animals.
The loss may be caused by illness, accident, disappearance, theft or vandalism. When it comes to fur animals, only losses caused by illness are covered. The basis for compensation is the animals' fair value. Any compensation carries a deductible, which is agree upon in the insurance contract for each type of loss.
Vehicles, working machines and forests
Do you have vehicles or tractors, combine harvesters or other working machines that should be insured? Or do you own any forest land? These assets are covered with various policies.
Liability and legal expenses insurance
The general liability insurance package included in Farm Insurance is a good solution in case of a variety of liability losses. We will determine the indemnification liability for the insured person, and if the case goes to court, we will also cover the legal expenses involved in it.
Business liability insurance covers personal injuries and property damage caused to a third party in cases where the insured person is liable to pay damages. Such a loss may have been caused by the insured person, family member, employee or trainee.
Product liability insurance covers bodily injury or material damage caused by a delivered farm product provided the insured person carries indemnification liability for such injury or damage. These may include food poisoning or loss to the buyer's stored goods by a contaminated product.
Business interruption insurance
A business interruption for a longer period may jeopardise your farm's situation financially, or even its entire future. You can prepare against this by means of Business Interruption Insurance. It covers loss of income in losses included under property insurance, such as production building fires or losses concerning animals.
Remember to look after yourself, too.
Have you planned your farm's operation in case of illness? How have you taken care of occupational health care and have you had someone visit your farm to assess the working conditions? Ensure continuity of farming operations and manage your farm's personnel risks. You are the most important asset to your company, and therefore your wellbeing is important. Often changes in your health come suddenly, but proper care will enable you to return to work quickly.
Farm Production Insurance is offered for actively operating farms. The farm's insurance coverage should be checked every year and whenever significant changes take place. Investments, changes in production and new subsidiary occupations affect your insurance needs.
The farm's legal form is not relevant in terms of being granted a policy. Policies can be granted to a farm – owned by a private individual or a legal person, such as an estate – engaging in either traditional or specialised farming.
What if I also engage in other business?
Other full- or part-time businesses may in some cases also be insured with Farm Production Insurance, or with Corporate Insurance. Contact us and your experts will help you select the most suitable and comprehensive insurance solution.
Insurance pricing depends on the deductible and your farm's risk management culture.
The policy's deductible should always be in proportion to the company's risk-bearing capacity. So it is worth checking that the deductibles chosen are at a sufficient level considering your farm's risks.
Risk management increases your farm's safety and operational reliability. Each farm should carry out a risk assessment survey, serving as a foundation for daily risk management work and insurance solutions.
General risk management culture includes
- fire protection (automatic fire extinguishing or fire alarm system)
- smoke ventilation system
- higher level of burglary protection
- crime alert system
- leakage detectors
- pipeline maintenance
- regular check-up and maintenance of machinery and equipment.