When people think of farm insurance, they think of home and contents, vehicle and crop insurance but it actually covers a variety of different areas with one of the most misunderstood being farm interruption.Sometimes called business interruption, this section of a farm insurance policy covers losses related to fire on a property.
“Business interruption is one of the things people don’t realise is available under the policy,” Trevor Madden, Gallagher Principal Broker – Ballarat said. “It is one of the most misunderstood aspects of a farm insurance policy and can be really helpful for farmers.”
Farming interruption can kick in during the aftermath of a bushfire or burn. If your property is blackened by fire or pastures are damaged, farming interruption will cover the costs of buying feed or agistment for your stock.
“If you lose your pasture and your feed for cattle and sheep, you can cover against that,” Madden continued.
“If you are blackened and you have nothing, you can insure say $100,00 cover for agistment costs’ and that will cover agisting the stock elsewhere where there is feed. That is important in farm policies especially in the event of catastrophe or fire.”
Farming interruption for loss of income is only available in the event of damage by fire which can help farmers get back on their feet.
Madden said that many farmers he works with do not know that the cover is available but, once taken out, they see the benefit.
“We have had clients effected by recent fires in Victoria and they have all had business interruption cover any found it to be brilliant in helping to save stock by being agisted elsewhere or produce supplied to the clients farm,” Madden said.