Understanding insurance for better risk management

Farm insurance is an important part of risk management for any agricultural business, whether you’re running a livestock property in a fire-prone area, a broadacre farm in a region with dry seasonal conditions or a horticulture business with valuable crop protection infrastructure.

Getting the right insurance and understanding the best approach for your business isn’t always straightforward. But with the right information, you can be confident your insurance is helping you manage the risks, and importantly, manage the recovery process when business disruptions occur.

To help you make informed decisions to manage your farm business and assets, Agriculture Victoria is hosting Farm Insurance Uncovered, a webinar with insurance industry experts who will provide insights into farm insurance.

The free webinar, on Wednesday 18 August, will cover issues including how insurance fits into your business plan, learnings from recent bushfires, floods and storms, and how to work out what your business needs.

Insurance and risk adviser Michael Myers, from Adroit Insurance, will provide insights on how to approach insurance, what you need and what your insurance will cover.

“It’s important with insurance to get it right from the start,” Mr Myers said. “It’s too late once a fire or a flood hits to try to make sure you are covered. You need to know what your insurance is covering, and importantly what it’s not covering.”

Mr Myers said it was important that your insurance company has a thorough understanding of your business, and that your policy keeps pace with your business.

“Your business will change and building costs change, and you need to make sure that each year you check the policy details not just the price,” Mr Myers said. “You need to look not just at the value of your old shed or fence, but what it would cost to get a contractor in to build a new one.”

National Farmers’ Federation’s Ash Salardini, who oversaw the NFF’s Financial Risk Management Project, will present an overview of risk management on farms and the role insurance can play.

“Insurance is just one of the risk management tools available when it comes to managing natural disasters,” Mr Salardini said. “Farmers can manage risks through their business structure, or through on-farm investments such as additional water storage or silos.

“It’s about getting the right professional advice, whether it’s from an accountant, an agronomist or a lawyer. It might be from a bank or the Rural Financial Counselling Service. These professionals can help you work out what risks are worth insuring against and making sure it’s value for money.”

The free Farm Insurance Uncovered webinar is on Wednesday 18 August from 7pm to 8pm. To register, visit the Agriculture Victoria website.

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