Engaging a local insurance broker who understands agriculture is important for growers when considering insurance options for their farm.
This relationship should become an important part of farm risk management, alongside on-farm safety policies and procedures.
Landmark Insurance business development manager, John Snowball, recommends the following as a part of mitigating fire risk:
- adhere to voluntary grain harvesting guidelines;
- ensure on-farm fire risk management procedures are understood and implemented by all staff;
- maintain open lines of communication with brokers about activities and safety procedures;
- consider coverage for assets, but also the ongoing profitability of individual operations while damaged assets are replaced and rebuilt; and
- 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 effective coverage.
Look local
"The most important recommendation I can make is for growers to spend time talking to their local broker to make sure they get the right type of cover," Mr Snowball says.
"A local broker will understand individual districts and individual farms.
"For example, Landmark Insurance brokers work within an agricultural business so they understand the price of sheds, the price of machinery and they can make sure growers have the right cover in place."
A local broker will understand individual districts and individual farms.
Correct cover
Many insurers no longer insure harvesters in an individual contract, but as part of a grower's overall asset and farm cover.
This cover and pricing consider the area and types of crops being harvested and their fire risk, staff training and fire risk reduction policies in place during harvest.
"Growers need to tell their broker everything," Mr Snowball says.
"If you're harvesting high-risk pulse crops, such as chickpeas or lentils, then it is important to run your broker through your risk management.
"Details such as how much of the harvest will be spent on lentils or chickpeas versus cereals is important to disclose.
"That goes to the heart of the risk being completely different (for different crops) and will likely affect the type of cover needed."
If you're harvesting high-risk pulse crops, such as chickpeas or lentils, then it is important to run your broker through your risk management.
In the event of an accident, Mr Snowball says insurance cover which considers lost time and income is just as important as protecting assets.
"There are a number of scenarios, such as if a harvester is being repaired and it rains, resulting in downgrading of crop quality, or strong winds blow the pods off chickpeas," he says.
"Accidents do happen and that's why there is insurance."
More information: John Snowball, 08 9318 8233, John.Snowball@landmark.com.au
DISCLAIMER
The information contained in this article, which is current as at the date of publication, provides only a general overview of subjects covered. It is not intended to be taken as legal advice or advice regarding any individual situation and should not be relied upon as such. Insureds should consult their insurance and legal advisors regarding specific coverage issues. All insurance coverage is subject to the terms, conditions, and exclusions of the applicable individual policies.