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Farm Production Insurance

Comprehensive insurance package for your farm

Farm Production Insurance provides comprehensive cover for property, operations and crops. 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.

You can also include Crop Loss Insurance for coverage in case of crop loss caused by an exceptional weather phenomenon.

We will always assess your farm's risks before making you an insurance offer. The farm's own risk management and risk management culture is significant in terms of the insurance content and pricing. This means that as the producer, you can affect the level of your insurance premiums.
Teppo Pöllänen‚ Development Manager, Pohjola Insurance
What kind of farms do we insure? Active farm as primary or secondary occupation

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.

Insuring property property insurance

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.

The insurance does not cover tractors, combine harvesters or other working machines that are moved by their own motor. These are insured separately with Working Machine Insurance.

Comprehensive insurance cover

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.

Comprehensive insurance cover 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.

Environmental damage

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.

Crop Loss Insurance can be used to insure the crop of most plants grown in a field against losses caused by unusual weather phenomena.

What kind of fields can be insured?

A plant must be grown with the purpose of harvesting it. Green manure grassland, environmental fallows or pastures cannot be insured. The insurance cannot be used to insure garden plants, berries or fruit. The insurance must be valid before planting.

What is compensated?

We consider it a coverable loss if the crop loss is caused by one of the following:

  • hail
  • exceptionally heavy rain or frost
  • exceptional drought, wet weather, long spell of rain or flooding or
  • failed overwintering of plants sowed in the autumn or of perennial plants, owing to exceptional weather phenomena.

We compensate net income losses when

  • growth is destroyed in the field
  • the crops are no longer of merchantable quality
  • harvesting conditions are so weak that crops cannot be harvested.

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.

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.

Read more:

How well are you prepared for situations in which actions by yourself or your employee, or a product from your farm causes unexpected trouble to your cooperation partner, for example? 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.

Legal Expenses Insurance compensates legal expenses and also provides cover for certain criminal cases.

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.

The object of insurance is the estimated gross profit, that is, the profit margin share of lost net sales, which can be a maximum of the annual net sales entered in the insurance policy.

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.

Read more:

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.
The insurer is either Pohjola Insurance or A-Insurance Ltd. The losses will be covered in accordance with the law and the insurance terms and conditions.