Farm Insurance Guide

Find out more about the type of cover you may require if you own or are looking to run a farm or agricultural business. Our simple guide helps you identify if you need farm insurance, outlining the typical types of cover that can be included.

What is farm insurance?

Farm or agricultural insurance is usually provided as an insurance package designed specifically for agricultural businesses, buildings, tools and output. It offers protection under a single policy for aspects including farm machinery and equipment, livestock, buildings, profits and produce.

Cover includes:

  • Property cover, including farm buildings, produce, deadstock and machinery; home buildings and contents; and let properties
  • Employers, public and products liability
  • Diversification
  • Legal expenses, professional liability and directors’ and officers’ liability
  • Environmental pollution
  • Loss of revenue
  • Livestock and goods in transit
  • Income protection
  • Specialist all-risks cover, including electronic equipment, computers, farm animal milking and feeding systems, and farm animal semen
  • Uncollected milk due to adverse weather and contamination of milk through antibiotics

Each farming operation is unique, so you should ensure that you have a policy tailored to your needs.

Do I need farm insurance?

Yes, if you have a commercial farm or agricultural smallholding it is vital to have liability protection of some kind. An agricultural insurance policy can offer you cover against a wide range of risks which may stop your farm operating, or make it run at a higher cost. This help keeps your livelihood secure in challenging times, whether the issues are caused by machinery and equipment, livestock, buildings, profits and produce.

If you have a small farm as a non-commercial hobby, your standard homeowner’s insurance policy may cover some activities. However, most home insurance will not include liability cover for commercial farming, so it’s important you review your current policy. If you are not covered for commercial farming, you should take out farm insurance.

What does farm insurance cover?

  • Working farms and smallholdings - cover designed and can be tailored for your farm machinery, produce or deadstock, or farm buildings. For livestock farmers, you can be insured for a wide range of risks including loss of stray animals, theft, transit, mysterious disappearance, electrocution and fire.
  • Diversification and personal insurance - With modern farms diversifying away from traditional activities, agricultural insurance can be tailored to different risks. Livery yards, farm shops, shooting, camping, agricultural contracting, renewable energy and wind turbines, B&B and holiday lets, commercial property and even drones can potentially be covered under farm insurance.
  • Accidental pollution – farm insurance policies can also include cover against any accidental pollution to the environment.

What does farm insurance exclude?

If you have farm and agricultural equipment, you may need to insure on a multi-vehicle basis, including private cars, commercial vehicles and agricultural vehicles. This is normally excluded from farm insurance policies, but you can take out insurance for agricultural vehicles, which can group cover for all your farm vehicles, such as motor, tractors and quads, under one policy.

As all insurance policies vary, please check your policy document carefully for full details of what is covered and what is excluded under your own farm and agricultural cover.

Farm insurance from Towergate

We offer specialist farm insurance policies tailored to your needs. Contact our agricultural insurance team today for a quote on 01823 625503 or see our dedicated farm insurance webpage.

About the author

Mike Stephens FCII is a respected senior industry professional and Fellow of the Chartered Insurance Institute (CII) with well over 40 years’ varied experience in the commercial insurance sector as a director, underwriter, and operational improvement manager.