Insuring your agricultural vehicles

Having adequate cover for your farm machinery is critical, along with understanding your safety obligations.

The effect of last summer’s heatwave was much publicised. It is particularly pertinent at a time when Brexit Secretary Dominic Raab admitted the Government was taking steps to ensure there were ”adequate supplies” in the event of a no-deal Brexit. On an even more macro level, the rapidly increasing worldwide population and its demands on the supply chain places demands on the farmers, their machinery and their annual yield.

While the climate and political situation are very difficult to control, there are ways in which agriculture farmers can pro-actively protect themselves and their business.

With farmers dependent upon income from their land, they need the right equipment for it to be in good shape. For example, suffering 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.

Furthermore, 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 10 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-vehicle fleets
  • 4X4s
  • Classic and prestige vehicles
  • Trailers
  • Horseboxes
  • Special types of vehicle.