Is farmers insurance necessary in Australia?

15 May

Is farmers insurance necessary in Australia?

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If you’re part of Australia’s farming sector, then you may want to consider taking specialised farmers insurance over regular business insurance to mitigate the different kinds of risks associated with your business more successfully.

Niche products like livestock, crop and farm insurance will help to protect your farming business from any untoward eventualities.

All insurance products are typically tailored to cover all aspects of your business from a range of unforeseen events like heavy rains, storms, winds and drought.

Determine why farm insurance might be necessary to protect your farm.

Why Take Farmers Insurance? 

The agricultural sector, while lucrative during good times, is wrought with unpredictable risks because of the nature of the industry.

Farmers insurance is especially designed to cater to the unique needs of the agricultural sector, which means that it has the capacity to protect you from all kinds of eventualities.

Whether you’ve had a poor crop season or weather-related business hits, this type of insurance will mitigate any financial risks associated with your livelihood.

A farm insurance pack typically involves a wide range of protective services for farmers, allowing you to choose from a myriad of benefits for the protection of your agricultural business.

An insurance company will tailor an insurance solution for your specific needs to ensure that you get the right coverage for your farming business.

Types Of Farmers Insurance

When it comes to products related to farm insurance, you’ll usually find a combination of business and personal insurance types, some of which include:

  • Farm Motor Insurance: This type of insurance has a similarity to motor vehicle insurance but it also stipulates additional risks that farmers are exposed to when working with motor vehicles on farms.   
  • Home And Contents Insurance: Any theft, loss or damage to a farmer’s house or property is typically covered under home and contents insurance.
  • Farm Machinery: This type of insurance covers specific farm machinery like tractors. Whether you own or lease your farm machinery, it’s always prudent to have it covered to protect yourself from any expensive repairs in case of damage.
  • Farm Liability Insurance: Farm liability insurance is a tailored product for the farm business and will take into account multiple risks associated with running a farm to provide you with adequate cover for your needs. 
  • Loss Of Income Insurance: If any damage, weather event or theft takes place on your farm property, then you are eligible for loss of income insurance to protect yourself from any income loss occurring as a result of the event.
  • Livestock, Hay And Fencing Insurance: This type of insurance is designed to protect your livestock and produce from any unforeseen eventuality, which may be natural or manmade.
  • Tax Audit Insurance: This type of insurance covers professional fees for accountants and other professionals in connection with any tax or financial audits for your business.

Farmers insurance can also be expanded to include items like personal accident insurance, workers compensation insurance, goods in transit insurance, and public liability insurance depending on the nature of the work undertaken on the farm.   

How Are Premiums Calculated For Farm Insurance In Australia?

Like other types, the cost of your farmers insurance package will depend on the level of risk you bring, so lower risk farming jobs typically benefit from lower premiums.

An insurer with a specific farm insurance package is better equipped to offer you a lower rate of premiums because they are well versed with the industry, in comparison to an insurer offering you general products for your farming business.

In addition, your insurance premium may also contain some local government levies.

Your previous claim history and local climatic conditions may also influence the premium calculated.

While several types of farm insurance fall in the general insurance category, certain tailored products are ideal to help you cover any potential losses that may result from your business.

Farming is a relatively unpredictable profession and several capricious events can occur, which can disrupt the way you run your business.

Covering these unique farming risks, whether you’re a big or small player, will help to protect your business from any climate changes, natural disasters or manmade thefts in the future.

When taking out farmers insurance, make sure your business is properly appraised to ensure you have adequate coverage for all your needs.

Related Tags: Personal Insurance Perth | Workers Compensation Insurance Perth

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