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  • Writer's pictureAmanda Bird

What Kinds of Insurance Policies Must Farmers Have?

Farms are dangerous places, with many accidents involving vehicles such as quad bikes, tractors or other farm equipment. Updated research indicates that 50 percent of accidents on Australian farms involve farm vehicles; hence insurance for farmers being a priority.

In addition to obvious dangers, many other risks require insurance coverage on farms. Good thing most perils are covered by a ‘farm pack’ policy, which can include multiple policies such as public liability, property and business continuity.

For instance, a farm pack may not suit you if you’re a small operation with only a few farmhands, animals, and equipment. You could be paying a too costly premium that could deplete your small earnings.

Likewise, if the farm has more than one property, it either needs multiple building and contents policies or the contents, and property policy must cover various buildings on the premises. In other instances where the building does not carry much value, the farmer may decide not to insure the property but could focus on the other collateral such as staff, equipment, and livestock.

So while farm Insurance policies may cover a lot, you could end up paying for cover you don’t need. Rather than a ‘one-size-fits-all’ cover, it may be more cost-effective to work directly with an insurer to customise a package that suits your unique needs.

Aside from the insurances covered in the pack mentioned above, there are several other insurances for farmers to consider, such as:

Crop Insurance

This policy covers farmers if their crops are destroyed by a natural disaster, like a fire. This type of insurance usually only covers buildings and property damage, hay, silage, and grain. Some farmers choose to self-insure, but many risks come with this approach.

Risk mitigation is essential in agriculture, which comes from maintaining farm equipment and machinery. It's also crucial that everyone involved in the farm, including children and family members, receive proper safety briefings regarding using farm equipment.

Farmers should also take out personal accident insurance, which is like income protection insurance.

Farm Motor and Machinery Insurance

There are a few options for this type of insurance for farmers. For example, they can choose to have comprehensive coverage or just third-party liability insurance. They can also get fire and theft insurance to cover losses due to accidental combustion or incidents of stealing.

Keep Reading If You’re a Hobby Farmer

More and more Australians are taking up hobby farming, with beehives, veggie patches and boutique vineyards popping up all over the country. The Victorian Department of Primary Industries estimates around 60,000 hobby farms in Australia.

However, if those projects grow to something more serious, owners may need to buy new equipment or machinery, extend and renovate existing structures, or acquire more livestock. The work and expense put in deserve the cover that suits your needs. So if something does go wrong, you want to make sure you have adequate insurance coverage.

Whether you're a serious hobby farmer or just getting started, ensuring your insurance policy provides the cover you need is essential, whether for your farm equipment, crops, animals, personnel, or all those combined.


Insurance for farmers in the Gold Coast is now easier with New Wave Insurance! Whether you’re a veteran or hobbyist, We’ll help you find the right policy for your assets and business.

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