The agriculture industry carries unique risks not faced by other industries.
Major risks faced by farmers include weather events (e.g. drought or flood), crop failure, yield losses, price fluctuations, bushfire, pests and plant disease.
While farmers cannot control the weather or the markets, they can manage their risks through various measures. This includes financial savings, crop diversification, improved irrigation systems and use of climate forecasts to guide decision-making.
But even with the best risk management in place things can go wrong. This is where insurance comes in.
Types of insurance for agricultural businesses
- Multi-peril crop insurance – protection for crop yield loss against a range of perils such as diseases and weather events. The insurance covers you for an agreed value of your crops and harvested seeds.
- Named peril insurance – cover for specific localised perils such as fire or frost.
- Business interruption – protection for ongoing expenses and loss of income after a catastrophe or disastrous event.
- Machinery and vehicles cover – insurance for farm machinery, equipment and vehicles.
- Liability insurance – in case of injury or harm to third parties.
If you would like to know more about how agricultural insurance could financially protect your farming business, get in touch with your local Reliance partner for a discussion.