Grain merchant insurance/who to deal with

[Rijol]

With all the news coming out about wellgrain, i was wondering how can i be certain that the grain merchants we deal with are insured. A few of them have told us they are but can you take the risk? Also how do you all decide who to deal with?

 

[Mr Charisma]

I'm a member of a grain marketing group which comes under the umbrella of openfield , all our grain that leaves our farm is insured tho at a cost to us ,,,,,,. It used to be £1 / ton but it may be slightly more now

 

[InsuranceLadyAmanda]

Being formerly involved in grain marketing within an agricultural buying group you would expect that checks would be made by all parties before trading. I would suggest the best thing you can do is ask and if you are still unsure ask for proof of insurance.

 

[Seed&Grain]

There is no certainty, unless you ask for money upfront. Most Merchants will be insured against other companies going bankrupt but this does not protect you the grower.

 

[dolf_lundgren]

Insurance is generally quite expensive. If they give you insurance then it is unlikley to be a problem. If a problem is likley then they amy only insure for say 20%. Possibly best to create your own insurance pot by putting money aside for it. Not easy to do though as there are usually other calls on cash.

 

[48492]

As a farm we use a credit insurance policy against all of our customers which will cover up to 90% of the debt if the customer doesn't pay for goods or services. The benefit of that is we get an insured credit limit based on the customers financial stability and some customers have credit refused, so we get an idea of risk based on that in addition they review a companies financials on a regular basis and alter limits accordingly!

I personally wouldn't use a company that offers me insurance against what I sell to them? To me that says they aren't confident in their financial stability, however i may be wrong!?