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Agricultural Insurance
Farm with the backing you need to flourish.
What is Agricultural Insurance?
Agricultural insurance is insurance designed to cover farmers in the agricultural sector, their crops, their assets, and their operations against common perils. Protection from agricultural risks means they can continue farming successfully in spite of any unforeseen events. It could also mean compensation for losses or damages that can’t be recovered.
Since farmers rely heavily on natural elements to succeed in their business, covering common risks like drought, fire, hail damage, and other acts of nature just makes sense. With the right farming insurance from registered financial service providers, farmers can successfully manage their business risks and get financial protection due to losses or damages related to their operations. Agriculture insurance is essential in African countries and is a vital part of economic growth, protecting vulnerable farmers from a wide range of perils.
How Does Agricultural Insurance Work?
It is a financial product offered by insurance companies to the farmers of South Africa. South Africa’s agricultural insurance products vary greatly thanks to a very competitive insurance market. In all cases, you get insurance policy documents that detail your cover, the conditions, the terms, and the exclusions.
Once you have signed this document, and the insurance company has signed too, your cover should commence. Some policies are made up of different types of insurance, such as personal all-risk cover, livestock insurance, health insurance for farm workers, vehicle insurance, and more. You do not have to select conventional insurance products for your farm, because many insurers offer customisable policies that can be adjusted to your unique needs.
Once you have signed your insurance documents, you will need to pay monthly agricultural insurance premiums. Your insurer then covers the perils listed in the policy. If an unforeseen event should occur, you can then follow their claims process to get compensation for losses.
What Does Agricultural Insurance Cover?
Depending on the type of farming you do, your insurance needs can differ greatly from another farmer. For example, a crop farmer may be concerned with disappointing growth due to drought, while a cattle farmer may be concerned with theft or wild animal attacks on their herd. This is why it is important to understand your risks and the kinds of insurance that can cover these risks.
Some insurers may offer you one product that includes the below types of cover. Others may keep them separate, meaning you will need to buy each type of cover. If you don’t want to spend the time to compare your options, you can fill in the form at the top of this page. Our system will match you with a farm insurance provider suited to your needs, and they will call you with an obligation-free offer.
Does farm insurance or agricultural insurance cover livestock?
Yes, in many cases, agricultural or farming insurance can include cover for livestock. Not all insurers offer the same cover, so it is important to ensure you understand the cover before you purchase the product.
Types of Farm Insurance to Consider
Specialised Cover
Some insurers offer specialist solutions to cover unique items such as irrigation systems. If your farm has any unique risks above and beyond the basis risks of the industry, getting specialised cover could be important.
Public Liability Insurance
This provides farmers with cover for third-party claims against their business and farm. For example, injuries, losses, and damages where the farm, its employees, or its owners are blamed. Whether you are innocent or not, this type of cover can help you pay for the legal fees involved as well as any compensation amounts if you are found liable.
Workers Compensation Cover
You can cover the medical costs of injuries for employees and farming staff with this type of insurance. It is also important to get liability cover for disgruntled employees’ claims against the business.
Business Vehicle Insurance
Does your farm own vehicles used for the business? You may need to insure them. In this way you can protect your trucks, tractors, and other farm vehicles against the repercussions of accidents and other common vehicular perils.
Personal Cover
Farmers can get health cover, car insurance, and life insurance to protect them from personal perils. Life insurance can, for example, become valuable if the farmer passes away, enabling the farm operations to continue.
Commercial Property Insurance or Farm Insurance
Whether you produce agricultural products or farm with livestock, your business works on a property. This property should be protected from common perils. This type of cover can include cover for the farm structures on the land, such as coops, silos, cellars, packing plants, warehouses, and even tunnels.
Asset Insurance
All farms own assets that help the business run smoothly. Whether that be machinery or other items, it is important to insure your assets. If you cannot maintain business continuity after an unexpected event, this could cost your business dearly. It is better to make sure you’re covered now.
Asset insurance can include cover for electronic equipment such as spreaders, road graders, rotary cutters, potato baggers, and any equipment used on the farm.
Livestock & Crop Insurance
It is important to insure the main product of your business, be that crops or livestock. Crops can often be insured at any stage of the process, as long as it is not already showing damage due to an insured peril. The same is true for cattle and livestock.
Reasons to Get Agricultural Insurance
Farmers get cover from agricultural insurance companies in South Africa for their businesses to ensure the financial continuity of the business in spite of risks. These risks differ greatly, but all can cost the business large amounts of money without insurance. Here are some leading events that farmers get insurance for:
- Loss of crops or stacks due to environmental events such as heavy rains or drought, or due to fire.
- Damage to or loss of farm buildings, machinery, warehouses, equipment, offices, production facilities, cooling plants, or even guesthouses and game farms due to insured events like fire and theft.
- Accidental damage to or loss of products produced by an agricultural business, such as wine and fresh produce during transportation or other stages of production.
- Damage or loss of personal assets and property, such as personal effects, computers, cell phones, and residential buildings.
- Damage or loss of farm vehicles and tools, such as irrigation systems, tractors, and trucks due to insured perils, such as robbery and accidents.
