Hay, Grain & Fertiliser – check your insurance or ask your Insurance Broker
“We are seeing reports about predicted shortages or supply chain issues with some farm inputs such as fertiliser,” informs Ausure Insurance Brokers Rural & Distribution Manager in WA, Grant Brokenshire.
“Farmers are being encouraged to order early, incentives are being provided for early delivery (requiring storage on farm) and the values of those inputs are rising.”
“There are also reports of more harvested crops (including hay, grain, and seed) being stored on farm,” explains Brokenshire.
What are the ramifications for your insurance?
The most obvious is a review of your Farm Contents and Consumables cover.
– Does the Farm Contents definition within your insurance policy include consumables and inputs such as fertiliser? Or are you required to insure that separately and specifically?
– Hay and Grain are often required to be insured specifically and are not generally included within a Farm Contents definition. Insurers will generally require more detail relating to the storage of hay, whether it is stored with machinery, how often moisture content is checked and general information relating to storage facilities and any mitigation measures in place.
– Are your sums insured adequate? With the increase in the cost of grain and fertiliser (just to name a few), sums insured need to be reviewed. Most policies will cover the replacement cost (check to ensure that includes delivery to farm) or the market value of the consumables and that can fluctuate wildly, depending on supply and demand. Some policies will provide automatic increased cover seasonally (for specified periods, so check that those periods are appropriate).
– Does your cover provide for multiple locations (some policies will provide cover Anywhere in Australia, whilst some are location specific)?
– As the value of these inputs increases, so does the potential for theft from farm. Check that your theft sum insured is adequate and that it provides cover for consumables across multiple locations?
– Do you require cover for Transit, either between farms or to and from your farm?
If you have a current insurance policy, whether it be with Ausure or somewhere else, we invite you to contact us to discuss your insurance questions or concerns. Ausure advisers take the time to understand your individual circumstances and provide you with tailor-made insurance solutions that work for you. Contact Ausure today by calling us on 1300 587 225, completing the form below, or finding a broker here.