Farmer’s liability insurance -what is covered and where to buy

The insurance protects crops, among others, against damages caused by: hurricane, flood, torrential rain, hail, lightning, landslides, avalanche, drought, negative effects of wintering or spring frosts. Compulsory insurance of agricultural crops may be included against single risks, e.g. hail, or in specially prepared packages. The contract is concluded for a period of up to 12 months and the sum insured is agreed individually with the farmer, based on the yield and price of the harvest for the last 3 years. The sum insured per 1 ha may not, however, be higher than the maximum sum insured in the relevant ordinance issued by the Minister of Agriculture and Rural Development.

Not only drivers are obliged to buy third-party liability insurance – farmers’ liability insurance is also obligatory. What is covered by farmers’ liability insurance and where can they be bought the cheapest?

When is a farmer’s liability insurance compulsory?

The answer to the question of whether farmers’ civil liability is obligatory should be sought in the act on compulsory insurance. It shows that the farmer’s liability is obligatory for the farm owner (co-owner).

Characteristics for a farmer’s liability insurance are that:

  • The insurance contract is concluded for a period of 12 months,
  • The insurance is characterized by an automatic renewal mechanism,
  • The insurance company is obliged to present a policy offer for the next period 14 days before the end of the 12-month period for which the farmer’s liability contract was concluded.

Agricultural insurance (including third-party liability and additional, optional policies) is offered by many insurance companies. These include PZU, Warta, Compensa, or HDI.

What does farmer insurance cover?

As part of the farmer’s civil liability insurance, the insurance company covers damages caused by the farmer, a person staying with him on a joint farm, or a person working on his farm. We are talking about damage, the consequences of which are:

  • Death, bodily harm, health disturbance
  • Loss, Destruction, or Damage to Property

The farmer’s civil liability insurance also covers the losses that arose in connection with the movement of slow-moving vehicles. On a farm, such vehicles are considered, inter alia, harvesters, sprayers, presses, planters, and rakes.

The liability of the insurance company is limited by the guaranteed sums. They are as follows:

  • 5,210,000 euros in the event of personal injury
  • EUR 1 050 000 – in case of damage to property

What is not covered by the farmer’s liability?

The act on compulsory insurance also indicates situations in which, despite having third-party liability insurance, the farmer will not be able to take advantage of this insurance. Insurance companies do not answer, inter alia, for the following damages:

  • In property that was caused to a farmer by people, e.g. working on his farm
  • Caused by the transmission of infectious diseases, not of animal origin
  • Consisting of pollution or contamination of the environment
  • Considering the loss of valuable items, e.g. cash or jewelry
  • Consists of the destruction of items borrowed or accepted by the farmer for use

A farmer should read the full list of exemptions before purchasing a third-party liability insurance policy to know when he can expect insurance coverage.

Farmers’ liability insurance – how much does it cost?

The farmer’s liability insurance usually does not exceed several hundred zlotys per year. At the same time, agricultural insurance is not only civil liability – farmers must also remember to insure farm buildings and vehicles. As a result, they spend more on insurance.

Most insurance companies operating in the Polish market offer farmers several types of insurance under one policy. The premium payment, in turn, can be spread over several installments.

The insurance protects crops, among others, against damages caused by: hurricane, flood, torrential rain, hail, lightning, landslides, avalanche, drought, negative effects of wintering or spring frosts. Compulsory insurance of agricultural crops may be included against single risks, e.g. hail, or in specially prepared packages. The contract is concluded for a period of up to 12 months and the sum insured is agreed individually with the farmer, based on the yield and price of the harvest for the last 3 years. The sum insured per 1 ha may not, however, be higher than the maximum sum insured in the relevant ordinance issued by the Minister of Agriculture and Rural Development.

By aamritri

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