Farm insurance for Australian farmers
One event can affect the home, machinery, livestock and income of a farming operation at the same time. RMA Insurance Brokers helps farmers review how these risks connect and arrange insurance around the way the farm operates.
Farm insurance at a glance
Farm insurance can bring several sections together within one insurance program. These may include the farm residence, business property, machinery, working dogs, theft, hay and grain, fencing, livestock, farm trees, business interruption, liability, machinery breakdown and property being moved by road.
Not every section will be selected or available under every policy. The structure needs to reflect what the farm produces, the assets and locations involved, how machinery and vehicles are used, and which risks require separate insurance. Crop, higher-value livestock and stud stock, farm motor, cyber and management liability may need to be arranged separately.
Key areas
- Domestic buildings and domestic contents
- Farm property
- Farm machinery and working dogs
- Theft
- Hay, grain, fencing, livestock and farm trees
- Business interruption
- Business liability
- Machinery breakdown
- Road transit
Who should consider farm insurance?
Farm insurance may be relevant to:
- broadacre and cropping farms
- livestock producers and stud stock operations
- mixed farming operations
- dairy farms
- horticultural and produce growers
- family and larger commercial farming businesses
No two farms carry the same combination of risks. A livestock operation may have substantial animal values, yards and fencing, while a cropping business may depend heavily on seasonal production, grain storage and time-sensitive machinery.
The insurance program should be reviewed around the whole operation rather than one asset at a time.
What can farm insurance cover?
The following overview is based on sections commonly found within Australian farm-pack insurance. Section names, definitions and available cover vary between insurers, and only the sections shown on the policy schedule will apply.
Domestic buildings and domestic contents
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 property
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.
Farm machinery and working dogs
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.
The machinery description, ownership, use, value and applicable insured events need to be checked.
Theft
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
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.
Livestock disease, illness, specialist mortality, loss of use and higher-value stud animals may be excluded or require separately arranged cover.
Business interruption
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.
Business liability
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
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.
Road transit
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 insured property, vehicle, journey, care and control arrangements, events covered and any transport for fee or reward need to be checked.
Example: when several farm risks come together
Illustrative example
A mixed farming business operates cropping and livestock activities and owns sheds, tractors, farm utilities and other machinery.
A fire damages a machinery shed, farm machinery and hay stored inside. The loss also prevents time-sensitive work from being completed while the property is made safe and replacement arrangements are considered.
One event may engage several sections of the insurance program, including farm property, farm machinery, hay and grain, and business interruption. Each section can have its own sum insured, sublimits, excesses and conditions.
The insurer's response depends on the policy wording and the circumstances of the claim, but reviewing how the sections interact before a loss can help identify gaps and unexpected limits.
Example provided for general illustration only. Policy coverage depends on the insurer, policy wording and circumstances of the claim.
When should farm insurance be reviewed?
Farm insurance should be reviewed whenever the assets, activities or ownership of the operation change. Common review points include:
- buying, selling or leasing land, or adding another location
- constructing or upgrading sheds, yards, fencing, irrigation, solar, batteries or other infrastructure
- purchasing, financing or replacing major machinery and vehicles
- changing crops, livestock numbers, animal values or stored hay, grain and produce
- introducing agistment, share-farming, contract harvesting or contracting work
- adding farm-gate sales, accommodation, events or other activities involving visitors
- changing employees, contractors, ownership entities or the business structure
- a significant claim or material change in rebuilding and replacement costs
Sums insured should reflect the valuation basis required by the policy, not only the original purchase price or an older renewal figure.
Some policies contain an underinsurance or average condition that may reduce a claim payment when the insured value does not meet the policy requirement.
What may not be covered?
Every farm insurance policy contains exclusions, limits, excesses and conditions. Areas requiring particular attention may include:
- wear and tear, deterioration and maintenance, together with mechanical or electrical breakdown where machinery breakdown cover has not been selected or does not apply
- flood and other natural hazards where cover is excluded, restricted or not selected
- pre-existing damage, defective workmanship or defective design
- livestock disease, illness, mortality or loss outside the specified insured events
- pollution, chemical use and spray drift where restricted or excluded
- property, activities, locations or changes that have not been disclosed
This is not a complete list. The policy schedule, wording and endorsements should be reviewed to understand what is insured, the limits that apply and the conditions that must be met.
Why farmers work with RMA Insurance Brokers
Farm insurance is rarely about one asset or policy section in isolation. RMA Insurance Brokers reviews how the property, machinery, vehicles, livestock, people and farming activities fit together, including where one event could affect several parts of the insurance program.
RMA Insurance Brokers can help farmers:
- review existing policies, schedules, sums insured, sublimits and excesses
- identify changes in assets, activities, locations and ownership
- clarify which exposures may sit within the farm policy and which may require separate insurance
- approach suitable insurers and explain differences between available policy structures
- manage renewals and policy changes
- assist with claim notification, insurer communication and understanding information requested during a claim
The insurer assesses the circumstances and makes the coverage decision. RMA Insurance Brokers' role is to assist the client throughout the process and advocate for their interests where appropriate.
What happens after you enquire?
RMA Insurance Brokers will contact you to understand the farming operation, existing insurance, renewal timing and any recent or planned changes. We will then explain what information is needed before approaching insurers or recommending the next step.
Useful information to have available includes:
- the current policy schedule and renewal date
- property locations, acreage and farming activities
- recent valuations or estimates for buildings, machinery and vehicles
- livestock, crop and stored-produce information relevant to the insurance review
- recent claims and planned changes to the farm
RMA Insurance Brokers works with farmers, agribusinesses and regional businesses across Australia. Through our relationship with rma network Livestock & Property Agents, we have connections throughout regional Australia. Our services are not limited to rma network Members or these locations.
If you are comparing brokers, our article on what to look for in a farm insurance broker sets out the questions worth asking.
Frequently asked questions
Is farm insurance arranged as one policy or several policies?
It depends on the farming operation and the insurance products available. A farm policy may combine several property, liability and interruption sections, while crop, specialist livestock, farm motor, workers compensation or transit risks may need separate insurance.
The policies should be reviewed together so gaps and overlaps can be identified.
Is flood automatically included in farm insurance?
No. The availability and treatment of flood can vary between insurers, policy sections, properties and locations. It may be excluded, restricted or available only where specifically shown on the schedule.
Flood cover should be confirmed from the policy documents rather than assumed from the treatment under a domestic home policy.
Does farm insurance automatically cover livestock disease or illness?
Not necessarily. Standard livestock cover may apply only to specified insured events. Disease, illness, specialist mortality, loss of use and higher-value stud animals may be excluded or require a separate policy or extension.
The insured events and animal values should be checked before cover is relied upon.
Why do sublimits and excesses matter on a farm policy?
A farm policy can contain an overall sum insured as well as separate limits for particular property or events. Fencing, hay, grain, fuel, chemicals, tools, livestock or property in the open may be treated differently.
One event may also engage more than one policy section, with different excesses or conditions applying to each section.
What happens if I need to make a farm insurance claim?
Contact RMA Insurance Brokers as soon as reasonably possible. We can help notify the insurer, identify the information requested, communicate with the insurer and help you understand the claim process.
The insurer will assess the policy response and make the claim decision based on the policy wording and circumstances.
If an urgent incident occurs outside normal business hours, contact emergency services where required and, where safe, take reasonable steps to protect people and property and prevent further loss. For emergency claims assistance outside business hours only, contact Brendan Kelly on 0411 013 178 or Brad Hubble on 0409 419 487. Any insurer emergency or claims number shown in the policy documents may also be used.
Related insurance
Crop Insurance
Specialist cover considerations for eligible crops against specified events, generally arranged separately from the core farm property policy.
Livestock & Stud Stock Insurance
Cover considerations for livestock and higher-value stud stock, including mortality exposures that may sit outside a standard farm policy.
Farm Motor & Agricultural Machinery
Cover considerations for farm utilities, trucks, tractors, harvesters and other machinery used on or away from the property.
Cyber Insurance
Insurance considerations for cyber incidents, data breaches, business interruption and incident-response costs.
Management Liability Insurance
Insurance considerations for directors, officers and businesses facing management-related claims and statutory exposures.
Review your farm insurance
Farming operations change over time. If you have acquired land, upgraded buildings, purchased machinery, changed farming activities or are approaching renewal, RMA Insurance Brokers can review how your current insurance reflects the operation today.
The information on this page is general information only and does not take into account your objectives, financial situation or needs. Cover is subject to the terms, conditions, limits and exclusions of the relevant policy. Insurance products and available cover vary between insurers. Please review the relevant policy documentation and obtain advice appropriate to your circumstances before making a decision.