Insurance is Crucial

Even in good times many people view insurance as a ‘necessary evil’.  In the current economic climate it is tempting to reduce insurance cover to ‘save’ money on premiums, however, often this proves to be false economy as a large property damage or liability claims may result in cost which the business cannot cover, and perhaps cannot sustain. 

A more prudent approach would be to carry out a thorough review of your insurance contracts to ensure that you are receiving best value for money, with the assistance of an independent insurance broker. Be aware of brokers who claim to be independent but may be tied to one product or one provider whereas a truly independent broker will have access to a number of insurers and schemes and will endeavour to find the best solution for you.

Meanwhile you may wish to take some time to consider the following points:

• Ensure that your sums insured are adequate to avoid under-insurance. In particular consider the rebuilding costs of dwelling houses and farm outbuildings which may not have been reviewed for some time. Remember to include specialist removal costs for asbestos if applicable.
• If a building is listed special consideration should be taken as these must be rebuilt in traditional materials.
• Ensure that your insurer is aware of any diversification as indemnity limits may need to be increased or cover placed on a more appropriate basis.
• Have you got business interruption cover? Many farmers do not take this yet statistics show that an alarming number of businesses fail to operate again following a catastrophe.
• Is your motor insurance adequate and on the correct basis?  You may get a substantially cheaper quote for private cars on the internet, however on closer examination you might find that cover excluded any business use and trailers were only covered for damage to third parties. A good farm motor policy should cover all drivers for business use and cover trailers for accidental damage.

There are many other areas of concern which should be addressed when reviewing your farm insurances so if you’d like to talk this through, with no obligation, give us a call on 01228 406290.

Here at H&H Insurance Brokers we pride ourselves on our independence and are committed to remaining so. 

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