Farm insurance
The farming industry has never been more important or complicated and farm insurance is a crucial part of that.
Anyone undertaking farming activity will understand the need for protection for their employees, farming output, vehicles, outbuildings and visitors to their land.
Whether you are running a large-scale farming business or a smaller-scale agricultural lifestyle, you will need adequate insurance protection to cover your business.
What is farm insurance?
Farm insurance is specified cover for anyone engaged in the business of agriculture. It covers the policyholder for multiple aspects of your farming business but is specific to the business, not to other activities carried out on your land or in your outbuildings (such as tourism-related activities).
Farming is an industry in motion – constantly innovating, constantly changing, the business of agriculture never stands still for long, and consequently, your insurance cover needs to be as flexible and hardworking as you are.
What does farm insurance cover?
Farm insurance is a broad and flexible category of the Irish insurance market. It needs to protect the business of farming but also the people that work within it, the vehicles that drive it, the outputs it creates and the buildings that support it. Here’s a broad overview of the types of cover on offer:
Farm buildings insurance aims to protect the warehouses, sheds, barns and other outbuildings that make up farm property ledgers. It protects your buildings from storm damage and fire and also covers the loss of technology such as laptops and printers. Fire brigade callouts and accidental damage can also be covered.
Farmhouse insurance is typically included in farm insurance. The farmhouse is the heart of your business and also your home and it deserves adequate protection. As with other home insurance products, it covers fire, flood, storms, accidental damage and public liability.
Livestock insurance is an essential part of the farm insurance package – protecting live assets that are at the heart of your business. Animals will be protected against loss or damage due to storms, fires, lightning strikes and electrocution and can protect animals in transit or while moving between fields or locations on foot.
Addons include cover for costs related to sheep worrying, theft and the higher cost of replacing pedigree animals.
Diary farm insurance is a specified policy type designed to protect the agricultural sector. It is designed to cover the buildings, equipment and output of dairy farming, protecting against contamination and covering milking equipment itself, while also offering public liability for visitors. The loss of herds can also be included, whether due to disease or theft.
A farm cannot operate without its tractors and other agricultural vehicles. Packages under this heading cover third-party, theft and fire. It can be extended to include Jeeps and other farm-specific vehicles and vital equipment and machinery.
Vintage tractors can also be included under this heading, protecting these historical examples of the industry.
Farm public liability is essential for any working farm. By virtue of its activities, visitors, customers and friends and family are guaranteed to be on your land or in your buildings. This category of insurance will make sure that you are protected against the cost of any damage involving people on your land.
Farmers also have to protect against animals wandering off their land or onto other people’s land or onto roads where accidents can happen. Farmers also need to be able to walk their livestock between different locations without worrying about the cost of accidents caused in public locations while doing so.
Farmers and the work they undertake can inadvertently lead to environmental accidents either through silage leaking into waterways, other forms of pollution or animal runoff. Environmental liability insurance is designed to cover the costs of cleanup and legal defence arising from these accidents.
Legal expenses coverage is a valuable part of farming insurance and protects against the cost of a wide range of issues. These include:
- Employment disputes
- Legal actions
- Tax investigations
- Licensing issues
- Injury claims
Personal accident cover is a crucial part of a farming insurance package. Unfortunately, due to the physical nature of the work, injury, disability or even death is a common occurrence in the day-to-day workings of a farm. Personal accident cover insurance is designed to protect against the costs of this and provides income support, death and disability benefits to you and your workers.
Who provides insurance for farms in Ireland
There is a wide range of providers working in the agricultural and farming insurance market. They include:
Farm insurance cost in Ireland
Farm insurance prices in Ireland are shaped largely by the type of farm you run, its size, the number of vehicles or machinery and the activities undertaken. As a guide, a farm of around 70 to 80 acres with no farmhouse but holding outbuildings and machinery would cost around €900 for standard liability.
As each farm has its own specifications, it’s vital to compare quotes across the industry to see the range of cover available.
Types of Farm Insurance Policies
Standard Farm Insurance
Standard farm insurance covers property damage and public and workers’ liability. As well as protecting against injury to employees and visitors, it will generally include cover against damage to buildings caused by storms, fire and flood.
Comprehensive Farm Insurance
Comprehensive farm insurance is a more tailored package that covers everything in standard insurance but also includes machinery, vehicles, livestock and homes.
Specialist Policies
Many farmers choose to take out specialist farm insurance policies as add-ons to their cover. This can include environmental liability, cover for specialised machinery or pedigree livestock. It can also protect against business interruption and provide income protection.
What are the benefits of farm insurance?
Farm insurance is a vital part of the armoury of any farming business. While overall farm insurance is not legally required in order to run a farm, certain aspects are, such as insurance for farming vehicles or employer liability.
The benefits of a complete farm insurance package are large and cover the farmer against the costs of bodily injury to visitors or employees, including seasonal contractors. The buildings, including the farmhouse, also deserve protection, and any specialised vehicles or machinery will be protected.
A farm insurance package is a central foundation for a safe and successful farming business.
What are the most common farm insurance claims?
Due to the varied nature of farming, the most common farm insurance issues are claimed against occurrences or accidents such as:
- Injuries caused by animals
- Damage from storms or flooding
- Falls, trips or other workplace accidents
- Environmental spillage or accidental pollution
- Livestock or crop loss due to storms or theft
Farm Insurance FAQs
No, having a dedicated farm insurance package is not a legal requirement, but some parts of it are. You must have employer’s liability insurance as well as insurance for all vehicles, for example, as well as insurance for any homes on the property.
Farming insurance is a much wider package of protections at a better price than if you buy individual policies to cover these legally mandated areas.
Farming livestock is generally more expensive to insure because of the wider range of activities and greater opportunities for risk. Livestock farming is open to threats of disease, theft, loss or accidental damage in ways that are less prone to tillage farming.
Tillage farming insurance is largely focused on property and machinery cover only.
Vehicles used in the running of your business, such as tractors, jeeps, trucks or forklifts, can be covered in your farming insurance, both for 3rd party and comprehensive cover. Vehicles for personal use, such as private cars, will need their own insurance cover.
