Business interruption insurance

[Jon 3085]

Since our farm has been turned into a dog walking and a children’s Play area I’m concerned about the fire risk later in the summer. Has anyone got this and what would it cost?.

 

[yellow belly]

I have it which covers for the loss of use if we have an insurance loss such as fire theft ect
it is in addition to the contents or building loss for fire or theft
paid out for hire of a tractor and loader till we got a replacement when we had a tractor stolen

 

[Jon 3085]

I asked if we were covered if a field of barley went up and they said this would cover it.l would of thought the normal insurance would cover it but seemingly not .

 

[Against_the_grain]

We got it for the first time this year and our loader had a small fire, and we have managed to get another one until ours is repaired, which should be covered by business interruption. Without it I guess we would be looking at a £1000+bill. I think business interruption cost £250, off the top of my head...

 

[Oscar]

I have had it for 10 years or so following my neighbour having a huge fire which basically destroyed his yard . He had the insurance and they paid out heaps , such as renting sheds on other farms for stock, and paying for contractors doing jobs which he would have done if his machinery had not been destroyed etc. Went on for a couple years. Made me think and I asked for it from then on but thankfully never needed it so far .

 

[yellow belly]

Mine is for 12 months
a higher premium for a longer cover

 

[Pan mixer]

I do it for a 2 year cycle, i.e. it provides up to 2 years income - with a breeding livestock operaton this is the minimum I think, no idea how much that bit costs though as it is in with the rest, I thought everyone did this.

 

[onthehoof]

We have 36 months, probably a bit over the top but it’s what they recommended and I’ve never really queried it, as @Pan mixer said I assumed it was standard policy (to have business interruption) as we have sucklers - worst case scenario it could take 3 years to buy replacements and get them up to full production

 

[JohnGalway]

Business owner I know had this type insurance. Long story short, the sea made way into his premises via the roof early one year. He had a lot of stock on hand and was able to operate until near end of year, his busiest time, when the stock ran out. He then tried to claim, his insurance company told him to f.o. as he should have claimed early in the year. Be careful of the small print.

 

[D14]

We have 36 months but be aware it’s a very grey area with regards to renewable subsidy such as FIT or RHI.

 

[D14]

We have 36 months but be aware it’s a very grey area with regards to renewable subsidy such as FIT or RHI.

 

[Steevo]

We have 36 months, probably a bit over the top but it’s what they recommended and I’ve never really queried it, as @Pan mixer said I assumed it was standard policy (to have business interruption) as we have sucklers - worst case scenario it could take 3 years to buy replacements and get them up to full production

We are likewise. I was amazed how little extra it cost to upgrade from 1yr to 3yrs for what is a very significant combined insured value. Well worth increasing it if anyone hasn't already.

 

[Steevo]

We got it for the first time this year and our loader had a small fire, and we have managed to get another one until ours is repaired, which should be covered by business interruption. Without it I guess we would be looking at a £1000+bill. I think business interruption cost £250, off the top of my head...

That's handy!

I had similar situation a few years back where I was without a loader after an accident involving a third party. The insurance company at the time wouldn't hire anything in to cover me over that period which was very frustrating indeed. If ever there is a next time I shall bear this in mind.

 

[Nigel Wellings]

Business Interruption Insurance to which you all refer is not particularly expensive and it does give quite wide ranging cover . Take a 500 acre combinable cropping farm with crop sales in a reasonable year of £250 000 the cost of this insurance for 2 years of cover will be in the region of £250. It will cover you for hire of a replacement machine/contractor if your combine or tractor went up in smoke, hire of replacement storage/grain drying facilities if the Drier goes up. I would expect 98% of farmers who are being correctly advised to have such cover. Your Insurance Advisor should be discussing the areas of small print on such policies and making you aware of them.