It is important to engage a local broker who understands farming businesses when considering insurance options for farms. This relationship will become a vital part of growers’ farm risk management efforts, alongside on-farm safety policies and procedures.
Landmark Insurance Business Development Manager John Snowball provided useful insight in the areas of fire risk mitigation and insurance options as part of his presentation in a series of GRDC Harvester Fire Workshops earlier this month.
He recommends considering the following as a part of normal farming practices:
- Adhere to grain harvesting guidelines,
- Ensure on-farm fire risk management procedures are understood and implemented by all staff,
- Maintain open lines of communication with your broker about all your activities and safety procedures you are using,
- Policy price is not always an indicator of good value. Understanding the fine print with the help of a broker and openly disclosing activities will ensure good coverage.
"The most important recommendation I can make is for growers to spend time talking to their local broker to ensure they get the right type of cover," John says.
"A local broker should be able to understand your local district, understand individual farms and your business activities.
"To give you an example, regional insurance brokers who understand and work within the agricultural sector will have a strong understanding of the major issues facing the industry and in the local region and will be well placed in helping their clients to have appropriate cover in place to protect against the client’s major risk exposures."
Harvesters are usually one of the key assets of your farming operation and, like the rest of the key assets, require the appropriate level and type of insurance coverage.
The cover and the associated pricing will include consideration for the region you operate in as well as the types of crops being harvested, staff training and steps you take to reduce your risk during harvest.
"Growers need to talk to their broker about everything they do," John says.
"If you’re harvesting high-risk pulse crops like chickpeas or lentils, then it is important growers run their broker through what they’re doing to manage the risk, as insurers are less likely to want to cover harvesters working with these higher risk crops."
"Details such as how much of the harvest will be spent on these types of crops versus cereals is important to disclose. This information goes to the heart of the risk and allows the broker to negotiate the most appropriate cover at a competitive premium."
If things are done right when setting up the policy the claim will run more smoothly in the event of an accident or fire; if wrong or incomplete information goes in at the start the potential for delays and other problems increases. Your local broker can help put things right.
