Farm machinery: are you covered?

A rapidly increasing worldwide population and the supply chain needed to feed it, places growing demands on the farmers, their machinery and their annual yield. Having adequate cover for your farm machinery is critical, along with understanding your safety obligations.

With farmers dependent upon income from their land, they need the right equipment for it to be in good shape. For example, suffering a fire in a combine in the middle of harvest could have catastrophic consequences if adequate provisions aren’t in place to recover from it.

Loss of revenue insurance, also called Business Interruption insurance, is universally regarded as complicated, but for rural businesses the reliance on weather for crops and livestock makes it even more complex. Loss of revenue insurance is designed to maintain the income of a business during its indemnity period so it can eventually resume trading at a pre-loss level. It is an important tool for securing the financial future of your business.

This is when the right insurance policy can be the difference between a successful or a disastrous yield.

Additionally, given the high level of rural thefts, it is particularly important to insure your agricultural vehicles and machinery. If the right security devices are used, there are also security discounts available on insurance. A specialist insurance broker will be able to advise you on the best options available. It is also good practice to extend your farm or estate policy to cover any subsequent loss of income or increased costs as a result of theft, accidents or damage.

It’s not just the vehicles themselves. Did you know that policies don’t always cover, for example, trailers and attachments? As an example, insurance available through CLA Insurance provides cover for these items up to £50,000 as standard and cover can be increased up to £100,000 on request.

Farmers also need to think carefully about the safety of farm employees and users of machinery. It’s been reported that machinery related accidents account for nearly one in ten deaths in farming every year. The Provision and Use of Work Equipment Regulations 1998 apply to all equipment and machinery that are used in work.

Above all else, the regulations insist that equipment must be suitable for the task they are designed for, properly maintained and secured and that adequate training and information about the equipment is available for all employees.

CLA Insurance can arrange insurance for most types of vehicles which can be incorporated into one policy. It can arrange cover for:

  • Private cars
  • Commercial vehicles
  • Agricultural vehicles
  • All terrain vehicles
  • Multi-vehicles fleet
  • 4X4s
  • Classic and prestige vehicles
  • Trailers
  • Horseboxes
  • Special type of vehicle.