The trade magazine Farmers Weekly has recently provided guidance for farmers and agricultural businesses on ways they can mitigate the risk of potential liability claims.
The publication says that business insurance is a tool for managing farm-related risks, particularly when working with third parties through formal or informal agreements.
Many farmers and agricultural businesses operate supply contracts, joint ventures and lettings, and, as Farmer’s Weekly advises, it is vital that businesses are clear about the risks they are carrying under any such agreement.
Working agreements should state clearly which party is liable for what in relation to the insurance, up to what levels, how insurance monies should be applied, duties relating to sharing policy details and when claims should be made.
Agriculture businesses may share the purchase of big-ticket machinery, such as combine harvesters, sprayers and foragers and, in such cases, the insurance needs to be in the name of both owners. If the machinery is to be moved from site to site, the insurance must cover this movement.
Also in relation to machinery, standard insurance may only cover use up to a certain number of hours a year, so if it is shared or leant out, the risk of being underinsured becomes a factor.
Horses and livestock are another area where farm business insurance can be complex. When animals are insured it’s important to establish at what point the risk transfers if they are moved or looked after by someone else.
If animals you are looking after for someone else escape and cause an accident or damage while in your care, you could become liable if the owner’s insurance does not cover their movement or transfer.
Tredstone Risks provides business insurance solutions for all types of tradesmen and service providers, including farm and agriculture businesses.
The unique risks and liabilities of farms need careful consideration when purchasing business cover – from public liability insurance, employer’s liability insurance to commercial vehicle cover, business interruption cover and more.
Contact Tredstone today for expert guidance from specialist business insurance providers.