Insurance – don’t take the risk

Conditions for the agricultural industry are uncertain and the market overall will potentially shrink as the Single Farm Payment starts to influence the minds of farmers.

As they look to manage their costs more efficiently, perhaps there has never been a better opportunity to review the insurance spend.

The uncertainty could, however, create an environment where they look to trim this cost to the bone without fully analysing the potential ramifications. This should be resisted and a meeting sought with their insurance representative.

“Cutting corners on cover can never be recommended,” said Borderway Insurance Brokers director Andrew Cuthbertson.

“Inadequate sums insured will lead to inadequate cover in the event of a claim. It is better to re-structure cover where feasible”.

One should also look to categorise risk into “necessities and luxuries”. By using this formula a simplified portfolio can be easier to understand as well as showing premium saving.

“For instance,it may be possible to cover property on a basis of rebuilding in modern materials rather than in traditional materials. Dramatic reductions in sums insured and consequently premiums are available”.

Andrew Cuthbertson added: “Liability Insurance should be viewed as a necessity with employers liability being a subject for much debate. Many farms now only employ casual labour and as such full cover is not required. This is not the case and advice to cancel cover should be resisted.

“Moving hand in hand is public liability, which is becoming vitally important. New access to the countryside and members of the public walking across land, has increased customer awareness as have diversification projects which can range from the refurbishment and renting of old farm buildings as offices or workshops to providing facilities for DIY livery, off road vehicles and other pursuits. Many policies only cater for farming risks and therefore professional advice should be sought.”

Flexible cover for such activities is available in the marketplace and Borderway Insurance Brokers can ensure the correct level of cover is arranged.

In addition, this year has seen the general insurance industry become regulated by the Financial Services Authority, principally, to bring greater protection to the customer. Borderway Insurance Brokers are authorised to transact general insurance and give professional independent advice.

The company, which has two fully staff trained offices, as well as field representation, is now firmly established as a leading provider of competitive farm and motor insurance.

Andrew Cuthbertson can be contacted on 01768 899199, mobile 0779 3528609.

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