WHAT IS FARM INSURANCE?

Working on the land brings many rewards—but just as many risks.

As a farm owner, you’re vulnerable to bushfires that can destroy livestock or damage your buildings and other property, machinery breakdowns that can cost you time and money, personal illness or a serious accident, or even a claim from a guest injured on your property.

That’s why farm insurance can help protect your farm and its produce and the well-being of you, your family, and the people who pass through your property.

WHO SHOULD CONSIDER IT?

Whether you’re a large-scale crop grower or livestock producer or a small family or hobby farm, farm insurance can help protect your farm, its produce and livestock – and the people who benefit from it.

“Australian agriculture accounted for 12% of goods and services exports in 2020– 21.”

Australian Government Department of Agriculture, Water and the Environment, Snapshot of Australian Agriculture 2023.

WHAT CAN IT COVER?

Farm insurance can be tailored to cover your home and farm buildings, livestock, vehicles, equipment and more. It can also safeguard you against theft and loss of income. For example, a typical farm insurance pack can cover:

  • Home property

  • Farm property

  • Public and product liability

  • Accident and sickness cover Livestock

  • Machinery breakdown

  • Workers Compensation

WHAT USUALLY ISN’T COVERED?

Exclusions, the excess you need to pay and limits of liability can vary greatly depending on your insurer. Policies generally won’t include cover for:

• Loss or damage to property caused by gradual deterioration or wear and tear.

• Flood

• Loss caused by earth movement unless the earth movement occurs within 72 hours of certain events.

• Damage caused by tenants unless the risk is accepted by the insurer.

POTENTIAL BENEFITS

  • Domestic property and belongings from defined events or accidental damage. Cover may include buildings, contents, personal effects and legal liability.

  • Physical loss or damage to farm property caused by defined events or accidental damage.

  • Claims by third parties for personal injury, property damage, and/or legal costs in connection with the farming business.

  • Regular payments to help keep your business running if you’re injured or fall ill. Death or loss of livestock due to specified events.

  • Damage to electrical and mechanical machinery, boilers and pressure vessels for loss or damage caused by breakdown.

  • It covers the cost of your employees’ wages, rehabilitation, and medication if they become injured or sick at work.

CASE STUDY

Jason owns a wheat farm in western New South Wales and some expensive farming equipment and vehicles. One night, a fire breaks out in one of his sheds, destroying a tractor and a ute.

Jason’s farm insurance covers the repairs to the shed and replaces the damaged contents, and he’s able to claim the cost of replacing both vehicles after the fire.