There is rapid change taking place in this and related industries. Agricultural practices, animal care, and product management are now all subject to the closest scrutiny and legislation, and adherence to all aspects of Health and Safety requirements is paramount. Full insurance coverage is essential to protect companies in this business sector and we highlight here some key areas.

Material Damage

For any Business insuring physical assets (e.g. Buildings, Stock, and Equipment) correctly is extremely important and they are often the first items to be insured. Care should be taken however to ensure that all the relevant facts are disclosed such as the condition of the Property and Electrics, method of Heating, and Occupation particularly if this changes during the year. Exact details of all constructions are also important especially if they refer to "non-standard" buildings such as Barns, Storage Holders, Silos and Animal Shelters etc.


The insurance cover should be examined in detail as some older style policies may not include Storm Damage or provide Theft cover. The Stock (Agricultural Produce, Deadstock and Livestock) is probably considered to be the most critical part of this section and consideration should always be made in respect of insurance cover for Loss Of Uncollected Milk, Sheep Worrying, or Animal Disease amongst others.

Employers Liability

Since 1969 the Employers Liability (Compulsory Insurance) Act has required every employer carrying on a business, trade or profession to take out and maintain insurance against liability for bodily injury or disease sustained by their employees, arising out of, and in the course of their employment. The minimum requirement by law is £2 million. In practice however, insurers do not issue policies in the UK for less than £10 million.

Public/Products Liability

The purpose of Public/Products Liability is to indemnify the policyholder under their legal liability, should they or their products cause death, bodily injury and/or loss of or damage to material property to a third party or parties. Insurance cover can be arranged for goods and services sold in the UK and/or on a Worldwide basis. This cover can be the most important section for any farmer as often the "buck stops here" and not having the right cover could cause financial ruin with the sheer numbers of potential claimants and the extreme awards now being made by the Courts.

Business Interruption

A Fire, Flood or other such disasters can cause financial ruin for any business. Whilst Insurers will pay for the repairs to the premises or replacement equipment, it could be months before the premises are re-inhabitable and Production and Business activity in general can be severely restricted. Existing financial commitments undoubtedly remain during this period and "Loss of Profits" cover is essential to help companies to remain viable. The possible results of Catastrophic events that occur during harvest time or involving harvested produce must be considered very carefully. It is essential that the harvest produce itself is always included in any policy and it should be noted that there are Special policies for Loss of Revenue with regard to Intensive Farming such as pigs and poultry.

Engineering

Plant and Machinery such as Lifting Tackle, Hoists, Fork Lift Trucks and other similar equipment have a statutory requirement for the plant to be inspected. Insurance cover for the equipment, the damage that is caused on failure and the statutory inspection is available under a single policy.

Motor Insurance

Motor insurance is a legal requirement under the Road Traffic Act and as such all companies that own or operate vehicles require cover. Policies are available on single vehicle, multi-vehicle or Fleet basis.

Goods In Transit/Marine Cargo

Transit insurance provides protection for the movement of goods, either the raw material coming into the premises or the finished goods/produce going out. Sometimes the goods are imported or exported, often by Third Party Carriers, so a good understanding of who is responsible at every point of the journey is important. This can often vary with each Supplier, Distributor or Retailer. Reliance should not be place on the Hauliers own insurance protection especially if they are transporting goods under CMR or RHA conditions. In such cases cover is restricted and additional insurance is required.

Crime/Fidelity Insurance

It is possible to provide cover against the dishonesty of your employees for the misappropriation of company monies or other commercial valuables. Extensions in cover can include ex-employees and employees of out-sourced companies. Traditionally cover under this type of insurance has not been available for Theft by non employees. However, now with the increased dependency on computers and in particular access to businesses via the Internet, wider cover is available.

Directors & Officers Insurance

The Companies Act 1985 alone sets out more than 200 offences for which a director can be personally liable. Add to this the numerous other offences under Health & Safety, Environmental, and Financial Services Acts and it can be seen how important it is to consider this type of insurance cover. The Insurance cover protects the personal assets of company directors and officials.

Legal Expenses

Commercial Legal Expenses Protection is becoming increasingly important to small and medium size businesses. This policy provides access to expert advice and assistance in resolving a number of different areas and if necessary will pay for the cost of legal fees and/or accountancy fees to conclude the dispute. Typical areas of cover, which often can be bought as a package include, Contract, Employment, Data Protection, Criminal Prosecution Defence, Property Protection and VAT Disputes. For larger companies wide cover is available for each specific area.


Cover can also be obtained for "After the Event" Litigation. A range of solutions are available for those who wish to pursue their legal rights through litigation.

Employee Benefits

Every company should give careful consideration to their employees' Conditions of Service.
Click here for details of the various types of Employee Benefits available.