Agricultural - Agri - Insurance

Broker Directory Article

Agricultural Insurance in South Africa
Commonly referred to as Agri Insurance

The farming community has unique challenges and risks in protecting their crop & assets, in order to create and maintain a sustainable agricultural business - ensure to get Agricultural or Agri Insurance to cover your risks!

Agri Insurance: Cover aspects such as assets (eg tractors) & crops




	See Agri/Agricultural News on the following:
• Need for huge changes in SA agricultural sector due to drought (Dec 02, 2017) • Santam Agri Motor Division: 4x4 Cover for the Farmer's Bakkie (March 01, 2017)

Heavy rain, hail and drought can have a catastrophic impact on the agricultural (or farming) industry - including its crops, livestock and assets (eg tractors, harvesters, systems etc) resulting in lost farm income. It is essesntial for Farmers to invest in Agricultural (Agri) Insurance.

Agricultural (Agri) Insurance cover is tailored to the unique risks and requirements the farming industry faces – not only does it provide cover for crops on the one hand, but also has cover available for aspects such as farm dwellings, farm buildings, farm machinery, equipment and/or implements, personal contents, and agricultural liability.

The two broad areas of Agricultural (Agri) Insurance are:

Crop Insurance: Insuring your crops against certain perils (some on a direct risk basis or systemic).
Asset Insurance: Fixed and moveable assets (such as Tractors, pivot irrigation, electronic equipment etc) on the farm.

Farming has changed over time – so has the risks. In many cases, farming has become an equipment-intensive business. With the pressure on for greater output and efficiency, today’s farmers' machinery and equipment work harder and longer, increasing the risk for breakdown. In addition, modern farms are using precision farming techniques with sophisticated systems, that are sensitive and prone to breakdown – resulting in losses, damages, spoiled products, expenses and lost farm income. Agricultural (Agri) Insurance has cover options available for your risks.

When discussing Agricultural (Agri) Insurance options, full disclosure to your Broker about all aspects of your farming operation, is crucial. The last thing you want is a claim repudiated because of non-disclosure.

Farmers and stakeholders should take great care before finally selecting an Agicultural (Agri) Insurance product that best suit their specific requirements.

These options may be confusing...

In fact, the smartest thing you can do is -- Get a specialist broker to do it for you!

Also, note the following guidelines, tips and considerations applicable to Agricultural (Agri) Insurance:

Agricultural or Agri Insurance, is a very technical area! Make sure your insurer is technically skilled and has researched all aspects impacting the modern farmer. Can they deliver accurate damage assessments for instance?
Some Agricultural/Agri Insurance products allow for extra cover, such as theft through employees, death of owner or worker, to name just a few.
Further additions to your cover options on your Agricultural (Agri) Insurance policy may include: Guesthouses, accidental damage to your pivot irrigation system, death of cattle or livestock, goods being transported, watercraft, veld fires, 4x4 extended cover.
Most products should also cover certain liabilities which may include spreading of a veld fire or bursting of dam walls and many others.
You may enjoy certain premium discount benefits – if you belong to Fire Protection Associations (FPA).
Some Agricultural/Agri Insurance products also cater for: Cooling plants, wine cellars, packaging, plastic tunnels, exports, fruit, poultry, warehouse liability, pedigreed animals.
Farm machinery, implements or equipment, can include the following - discuss possible breakdown cover with your Broker: Tractors, harvesters, balers, sprayers, generators (to power farm machinery and for back-up power), computers & electronic equipment, pumps (for irrigation and farm animal water supply), farm refrigeration units, systems (heating, cooling, pivot irrigation & electrical distribution), stationary farm machinery, engines and motors – to name a few;
Medical assistance and funeral cover for workers, may also be valuable Agricultural/Agri Insurance product additions.