Farmers insurance is more specialised than some other insurance policies in that not only does farmers insurance cover every aspect of the business but it can also cover the private dwelling as well.
There are many possible 'bolt ons' to farm insurance which can cover such things as farm buildings, the farm house (basically householders insurance), livestock, equipment, business interruption and personal possessions.
It is becoming increasingly apparent that many farmers have an inadequate level of farmers insurance partly due to the inability to support the cost of the insurance premiums but also as a result of the continually changing needs of farmers insurance which is becoming ever more complex.
One of the main areas that farmers have proved exposed in recent years is the lack of farmers insurance relating to environmental issues surrounding the use of chemicals on the farm. Many farmer insurance policies physically exclude any damage due to chemical leakage or damage due to the use of chemicals around the farm despite the high costs that can be associated with chemical disasters which could leave many farmers in financial ruin. What is worse is that most farmers are blissfully unaware that they do not have chemical insurance cover!
For those farmers that do not have the cost of chemical cleanups and other costs associated with chemical disasters included in their farmers insurance could find themselves in a no win situation in any claim that is anyway related to chemicals.
It is vitally important that all farmers actually understand exactly what is and is not included in their farmers insurance policy and take steps towards obtaining cover for those areas of their business which perhaps remain unintentionally without insurance cover.
Another area in which some farmers leave themselves exposed is when they allow but are not insured for shooting or other forms of recreational pursuits held on their land. Farmers should seek legal advice to ensure that they are covered for any use of their land either through farmers insurance or by means of legal disclaimers.
In addition, farmers need to be consciously aware of the ever changing needs relating to their farmers insurance making sure any changes in working practices or use of the farm are fully covered through there farmers insurance policy and that, as a matter of habit, they continuously remove unsafe objects or fix anything that might pose as a danger to farm workers or the general public as they are out and about on the farm.
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