livestock insurance in australia
DESCRIPTION
Livestock insurance is a key piece of the puzzle when it comes to helping farmers in Australia protect the animals that are their livelihood.TRANSCRIPT
Livestock insurance eases farmer’s burden
Drought, flood, fire, disease, injury and death – the natural; hazards for farm animals are wide ranging.
If that wasn’t enough for farmers in Australia to worry about, other risks add to the ones that mother nature dishes out – for example legal liability, theft and malicious damage.
Livestock insurance is a key piece of the puzzle when it comes to helping farmers in Australia protect the animals that are their livelihood.
It doesn’t just apply to cattle, but to other animals such as pigs, poultry, fish, sheep and horses. Tailored insurance is also available for less commonly farmed animals such as alpacas, llamas and deer.
Cover is also available for animals travelling by road, sea or air, whether that’s to a local agriculture show or to new owners.
In todays sophisticated breeding environments, artificial insemination brings new risks – and insurance is available for loss or damage to semen or embryos due to the escape of nitrogen from a carrying flask. If an animal dies, the farmer not only loses the value of the animal but the ongoing income it produces from laying eggs or producing milk, for example. This loss of revenue is also insurable.
Most livestock insurance in Australia uses a “fair market value” as the benchmark for payouts in the event of a claim. It is possible however, to obtain “agreed value” cover where you set your own value on the animal – however such policies tend to have higher premiums. It is also the case that many farmers do not insure their general livestock against mortality due to the high rates of insurance, insuring for mortality only for their stud stock.
Premiums also vary depending on the availability and quality of veterinary care, the location, the health of the livestock and the standard of care the livestock receives.
Livestock farming is of immense importance to Australia. Three months after the arrival off the first fleet in January 1788, livestock in the colony consisted of seven horses, seven cattle, 29 sheep, 74 pigs, 18 turkeys, 29 geese, 35 ducks, 209 fowl and (unfortunately) five rabbits. By 1860, there were 25 million head of livestock in the country.
Today, agriculture is worth almost $50 billion a year to the Australian economy and the value of farm exports, in 2010-11 was $32.5 billion – 54 per cent from crop exports and 46 per cent from livestock exports.
No matter where in Australia you farm, if you’d like independent and professional advice about insurance contact EBM Insurance Brokers.
1300 INSURE (1300 467 873) | F: 1300 365 822 | [email protected] | www.ebm.com.auNew South Wales | Victoria | Queensland | Western Australia | South AustraliaCoverholder at Lloyd’s | Global Broker Network | Asia Australasia Alliance | National Insurance Brokers AssociationElkington Bishop Molineaux Insurance Brokers Pty Ltd | AFSLN 246986 | ABN 31 009 179 640 | Est 1975
Our advice about insurance is provided for your general information and does not take into account your individual needs. You should read the Product Disclosure Statement and Policy Wording prior to making a decision, these can be obtained directly from EBM.