Farm insurance for Australian farmers

The residence and domestic contents at the farming property may be insured within the farm program. The buildings and contents sums insured, occupancy, construction and any business use of the home should be accurately recorded.

Farm buildings, contents, improvements and specified items used in the farming business may be insured against selected events. Sheds, workshops, silos, tanks, pumps, irrigation infrastructure, power infrastructure and other improvements may need to be individually identified or included within the correct property category.

Agricultural machinery, plant, towed implements, mobile bins and other eligible equipment may be insured where shown on the schedule. Some farm policies can also insure eligible working dogs used in connection with the farming business.

It is important that the machinery description, ownership, use and value are recorded correctly, along with the insured events that apply.

Theft cover may apply to selected farm property, machinery, money or other insured items. Security requirements, evidence of forcible entry, property in the open and item-specific limits can affect how the section responds.

Hay, grain, fencing, livestock and farm trees may be insured within a separate farm-property section, with their own insured amounts, events, limits and conditions.

Do not assume that livestock cover includes stud animals. Stud stock may be excluded or subject to specific limits and conditions, and separate insurance may be needed. Disease, illness and loss of use also require specific consideration.

Damage to farm property can affect production long after the initial event. Where business interruption cover is selected and the policy trigger is met, the policy may respond to certain lost income, additional operating costs or other insured financial effects while the farming operation recovers.

Farm activities can create third-party injury or property-damage exposures involving visitors, contractors, customers, farm-gate activities, livestock and products. An incident involving livestock leaving a property and entering a road is one example of why fencing, boundaries, declared activities and liability cover need careful review.

Pollution, chemical use and spray drift may also be restricted or excluded.

Machinery breakdown is different from cover for external events such as fire, collision or theft. Depending on the section selected, cover may be available for the sudden and unforeseen breakdown of specified mechanical, electrical or electronic equipment, boilers or pressure equipment.

Wear and tear, maintenance and gradual deterioration are generally treated separately.

Where road-transit cover is selected, livestock, farm produce, general farm goods or machinery may be insured while being loaded, transported by road and unloaded. The cover depends on what is being transported, the vehicle and journey, who has care and control of the property, the insured events and whether transport is being undertaken for fee or reward.