Australia is well known for its harsh climate conditions, and the weather can certainly be unpredictable. When it comes to the impact of variable weather, farms tend to be more vulnerable than many other types of businesses.

Droughts, floods, major storms, strong wind conditions and other weather variations can impact on animals and crop yields, and naturally affect the farm’s capacity for income.

An adverse and unpredictable weather event could result in serious business interruption for a farm. Without business interruption insurance in place to provide financial protection for loss of income and ongoing expenses, a farm could be left high and dry in such circumstances.

Weather is one of the most difficult risks to manage in agricultural businesses. This means that as well as purchasing cover for vehicles, machinery, liability and injuries, farmers should consider how they will financially protect their income from the impact of weather events, and take the time to fully discuss this with their broker.