Friday, December 15, 2017

Check insurance cover for stored crops ahead of harvest

May 31, 2017 by  
Filed under Crops

ABP Orwell Bulk Terminal Opening

Safe and effective grain and crop storage is a crucial area of farm management – and farmers are advised to seek insurance for in-store crops ahead of the busy harvest period.

“Fire is the word that terrifies all farmers,” says Richard Beechener, broker at agricultural insurance company Farmers & Mercantile. “It may be the crop store with or without crops stored inside. It may have been caused by over-heating, arson, electrical fault or an accidental spark.”

In reality, most modern mainstream arable farming policies will already cover for such incidents, and the crop will be insured whether in field or in store. But today the implications of business interruption must also be considered.

Interruption

“Take account of the value of the stock, but couple this with the indemnity period,” says Mr Beechener. “In other words, how long the business interruption is in place, and typically this will be a minimum of two years before operations return to normal.”

If a store burns down, for example, a farmer will either need to hire other facilities or face a significant loss of income. Sensibly calculated business interruption cover can ease the burden.

An increasingly common, and added complication, is the use of a third-party farm for storage.

In the instance that one farmer will make use of storage facilities on a neighbouring farm, it is essential to have a robust warehouseman’s contract in place, with the insurance of the quality of product clearly established.

It is, of course, essential that the insurer is aware whether crops are stored at the home farm or a third-party farm. It also needs to be established whether the temporary custodian of the grain or other crop takes over the insurance during this period.

“It might be that one neighbour has a drying facility, and another makes use of this for a temporary period,” says Mr Beechener.

“In such circumstances, arrangements should be made with the insurance broker to ensure internal factors such as storage management competence are covered, and a comprehensive set of storage notes are included.

“Of course, in the case of perishable goods such as top and soft-fruits there is potential that more could go wrong, and temperature controlled environments and cold-stores would need to be factored into any arrangement. It is important to be very clear what is in place,” he adds.

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

 
barbour pas cher barbour pas cher barbour pas cher barbour pas cher barbour pas cher golden goose saldi golden goose saldi golden goose saldi golden goose saldi golden goose saldi doudoune moncler pas cher doudoune moncler pas cher doudoune moncler pas cher doudoune moncler pas cher doudoune moncler pas cher moncler outlet online moncler outlet online moncler outlet online moncler outlet online moncler outlet online