Insurance for a farm necessary?

J

johnsquire

I was chatting to a farmer on the weekend, and he said one of his unavoidable (and substantial) fixed costs is public liability insurance. He said you just can't exist without this insurance, because if anyone (even a trespasser) comes on to your land and hurts him/herself you will be liable - and you could lose your farm.

What's the go here? Can you do without insurance of any kind? Or is this kind of insurance pretty much mandatory for land owners?
 
johnsquire said:
Don't suppose anyone can help with this?
Click to expand...

Yeah, a lawyer. Really, get proper legal advise for something like this.

The trespasser thing is probably not correct, but the problem is that you'll have to spend a lot of your own money defending yourself. Insurance will probably cover those costs.
 
I would check whether it was covered under any of his other insurance policies eg home buildings, workers compensation etc
It is necessary, I think, particularly if he has any one coming and working the land for him. But maybe worthwhile seeing an insurance broker to see if he can get any better deals.
He is probably considered to be in a "dangerous occupation" and pays more than the average homeowner.
 
johnsquire said:
Don't suppose anyone can help with this?
Click to expand...

What exactly is your question?

If you're asking, as per the post heading, whether you need liability insurance if you own a farm, of course you do.

Stock can wander, fires can escape, dams can break, visitors to your property can be injured courtesy of your negligence, just to name a few of the risks.
 
vaughan said:
Yeah, a lawyer. Really, get proper legal advise for something like this.

The trespasser thing is probably not correct, but the problem is that you'll have to spend a lot of your own money defending yourself. Insurance will probably cover those costs.
Click to expand...


The trespasser thing IS correct - you have a duty of care and a trespasser can sue if he/she can prove you were negligent.

Public liability insurance is a must for any property owner.
Marg
 
I've just bought a 320acre property in SA zoned Primary Production/livestock with no stock and no structures. I can't even get insurance, even if I wanted it.
 
eKwatee said:
I've just bought a 320acre property in SA zoned Primary Production/livestock with no stock and no structures. I can't even get insurance, even if I wanted it.
Click to expand...

Liability insurance on acreage is pretty straight forward.

Any insurer who does agribusiness will do it.
 
Token Funder said:
Liability insurance on acreage is pretty straight forward.

Any insurer who does agribusiness will do it.
Click to expand...

I might have to try contacting these insurers direct as I've been to several brokers, and unless the land has a structure on it or a business is being conducted on the land, even be it a hobby farm, they couldn't find any insurer to take it on.
 
I'm interested in this too - as never thought of it.

We paid cash for 10 acres of vacant land (with a fence around it) and insurrance never crossed my mind because there is nothing on there that I would consider insurable (structures). There are a couple of small dams that would cause no dramas if the wall broke. If fire went through it would save me having to start up the chainsaw this weekend.

I guess I need to look into this public liability thing as we will be getting a few people on the property (surveyor, builder, tree lopper etc) ... darn ... another bill!

Any recommendations for insurer ... my normal one doesn't have the option
 
I'm an insurance brokers so I'll give you a few scenarios why you need liability insurance these days you are mad if you don't.

If a member of the general public decide to climb over the fence and pick mushrooms from your property and get sick from those same mushrooms they could try to claim against you for negligence in not fencing your land "better" or putting up a sign "do not pick mushrooms or no trepassing". If you get an ambulance chaser lawyer on the case something like this will happen. If you have someone come onto the property and fall in the dam and drown you can be sued for negligence as the dam is not fenced off.

The vacant acreage you have you should be able to get insurance off any the major insurers, not the likes of AAMI etc its out of their guidelines.

Also if you have any livestock, even dogs that get off the property and get hit by a car and the car owner or insurer can prove that the animal was yours then you are liable for damage caused to the vehicle.
 
jaspersmum said:
I'm an insurance brokers so I'll give you a few scenarios why you need liability insurance these days you are mad if you don't.

If a member of the general public decide to climb over the fence and pick mushrooms from your property and get sick from those same mushrooms they could try to claim against you for negligence in not fencing your land "better" or putting up a sign "do not pick mushrooms or no trepassing". If you get an ambulance chaser lawyer on the case something like this will happen. If you have someone come onto the property and fall in the dam and drown you can be sued for negligence as the dam is not fenced off.

The vacant acreage you have you should be able to get insurance off any the major insurers, not the likes of AAMI etc its out of their guidelines.

Also if you have any livestock, even dogs that get off the property and get hit by a car and the car owner or insurer can prove that the animal was yours then you are liable for damage caused to the vehicle.
Click to expand...

Other than the mushroom example which, in broad terms, is fanciful, the general points stand.

The big risks with "vacant" acreage is fire. You're not around so you don't pay much attention to the long grass and lack of fire breaks. A bit of spontaneous combustion and a wildfire breaks all of your boundaries destroying the crops, stock and property of your neighbors.
 
Tresspasser/poacher enters property to access dam to steal marron.
Idiot climbs over a fence, gets an electric shock and rips his leg open on the wire as he falls. Thankfully the lad had so many other things the police wanted to charge him for(unlicenced gun, some pot etc) he never had time to think about suing.

Delivery of fertilizer arrives and you direct to unload at a location. However its been raining. The driver slips and falls heavily hurting his back. Unable to drive or unload trucks for a few months. That one was covered by company work compo but just as easily could have been a case against my parents for not providing an safe unloading area.

Even just cutting hay as a kid I was over 500m from the tractor with a drink for the old man waiting for him to see me. As I was standing there a broken blade went whizzing past and landed fairly close. Just as easily gone the other direction over a road.

The risk does vary depending on the property but Murphy's law is always waiting. While Australia is not as bad as America for ambulance chasers yet you still hear of some stupid claims.

Elder's is one option.
http://www.eldersinsurance.com.au/farm/farm-liability-cover
 
Insurance, them betting I will pay them more @$100/month (number pulled out of mid air) before they have to pay out $½million

I am betting that something bad will happen, in my life thats a given.
 
So assuming you just wanted the level of cover that would prevent you from being liable for the above suggested sorts of scenarios, is it simply known as "public liability insurance"?
 
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