Farm Business Interruption Insurance

Premiums typically range from $1,500 to $8,000 per year depending on your gross profit sum insured, indemnity period, farm type and location. Intensive operations with high revenue concentration tend to cost more than broadacre grazing properties. Contact Shielded for a tailored quote based on your farm's financials.

The indemnity period is the maximum time the insurer will pay your lost income after an event. Options typically range from 12 to 36 months. For most Australian farms, 18 to 24 months is recommended because rebuilding infrastructure, re-establishing pasture and waiting for the next production cycle takes longer than in most other industries.

No. Drought is a gradual process, not a sudden insured event, and is excluded from virtually all business interruption policies. Business interruption cover is triggered only by sudden and accidental events that are also covered under your underlying farm property policy, such as fire, storm or flood.

Not usually. Business interruption is typically added as a section within your farm package insurance policy rather than purchased as a standalone product. It must align with the insured perils listed in your property section, so having both under one policy ensures there are no gaps.

Your sum insured should equal your annual gross profit (revenue minus variable costs) multiplied by the indemnity period in years, plus a margin for growth. Your accountant and broker should work together to set this figure. Underinsurance is common and can result in a significantly reduced payout through average clauses.

A time excess is a waiting period (typically 48 to 72 hours) after the insured event before the indemnity period begins. No income loss is paid during this waiting period. It functions similarly to a monetary excess but is measured in time rather than dollars.

Major farm insurers offering business interruption cover include WFI, QBE, CGU, Elders Insurance, Zurich and Hollard. Each structures the cover differently, with varying indemnity period options, sub-limits and excess structures. At Shielded, we compare these options to find the policy that best matches your farm's risk profile and income.

Australian farm insurance typically includes cover for farm buildings and structures, contents and machinery, livestock, crops, public liability, farm motor vehicles, and business interruption. Most insurers offer a farm package policy that bundles these covers together. At Shielded, we compare packages from insurers like WFI, Elders, QBE, CGU, Zurich, Hollard and others to find the right combination for your operation.

Farm insurance premiums vary significantly based on property value, location, farm type, and the covers selected. A basic hobby farm package may cost $1,500 to $4,000 per year, while a large broadacre or cattle operation could range from $5,000 to $20,000 or more. Factors like bushfire or flood risk zones, claims history, and the value of machinery and livestock all affect pricing. Request a free quote through Shielded for an accurate indication.

Crop insurance is usually an optional add-on to a standard farm package, not included by default. It protects against losses from hail, frost, fire, flood and other weather events that affect crop yield and quality. Multi-peril crop insurance (MPCI) provides broader cover but is priced based on your specific crop type, location and historical yields.

Most comprehensive farm insurance policies include cover for bushfire, storm and flood damage to buildings, contents, machinery and fencing. However, coverage limits and excesses can vary significantly depending on your property's risk rating. Properties in high-risk bushfire or flood zones may face higher premiums or specific excess levels. It is important to review your policy details and sum insured amounts regularly.

Farm liability insurance (also called public liability) protects you against claims for bodily injury or property damage caused by your farming operations. If a visitor, contractor or neighbour is injured on your property, or your livestock escape and cause damage, liability cover pays for legal costs and compensation. Most farm package policies include $10M to $20M of public liability cover as standard.

Farm machinery and equipment are typically covered under the contents and machinery section of a farm package policy. However, high-value items like harvesters, headers, tractors and irrigation equipment should be individually listed with accurate sum insured values. Portable equipment and items used away from the property may need additional cover. Review your sums insured annually as replacement costs increase.

Contact us at Shielded Insurance on 1800 97 98 99 or reach out to your insurer directly. We recommend notifying us as soon as possible after a loss event, documenting the damage with photos, and keeping records of all related expenses. Our team will guide you through the claims process.

Yes. Hobby farms and lifestyle properties can be insured under specialist rural property policies or scaled-down farm packages. These policies typically cover the dwelling, sheds and outbuildings, fencing, a small number of livestock, hobby machinery and public liability. Insurers like CGU, WFI and QBE all offer hobby farm products. Premiums are generally lower than commercial farm policies.

We compare farm insurance quotes from a wide panel of Australian rural insurers including WFI, Elders Insurance, QBE, CGU, Zurich, Hollard, Nutrien Ag Solutions and others. The best insurer for your situation depends on your farm type, location, and the specific covers you need. As brokers, we do the comparison work for you.

Review your farm insurance annually at renewal, or whenever there are significant changes to your operation - such as purchasing new machinery, building new structures, expanding acreage, adding livestock, or changing your farming activities. Building costs and machinery replacement values increase over time, so keeping your sums insured up to date is essential to avoid being underinsured at claim time.