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Four questions to ask your farm insurer

Farmers should understand what they’re getting when they buy farm insurance

It would be foolish to buy farm machinery or equipment simply because it’s cheap — if you invest in your business you want quality.

If you buy equipment from an online seller at a low price rather than through a trusted, local dealer, you may not be too surprised if it turns out to be low quality with a questionable history.

The same is true when buying insurance for a farm.

These four questions for a potential insurer should help you decide if it’s an investment worth spending your hard earned money on.

1. Is this insurance right for me?

Farms come in all shapes and sizes – insurance which is right for a large-scale, arable operation, isn’t necessarily right for a small farm with a little B&B business attached. Your insurer should offer cover which is right for your individual business and isn’t just a one-size-fits-all solution.

2. Do you understand my business?

Farming isn’t just an industry, it’s a way of life — any insurance company wanting your business should be able to demonstrate its farming credentials.

If an insurer can’t point to a long history within the farming industry or show its deep knowledge and understanding of farming then can it truly claim to be an expert?

Farming faces very particular challenges as it is one of the most dangerous industries in the UK. Farmers also face threats from organised criminals who target their premises knowing they often house valuable equipment. So any insurer with your business's best interests at heart will be dedicated to making the industry a safer and more secure working environment.

3. Will you be there when I need you most?

There are plenty of businesses out there which are quick to take your money but which become elusive when you actually need them. When farmers have to make a claim, they need things to happen quickly and efficiently – their business relies on this.

If an insurer wants your business can it truly show it is committed to fair payment of claims? Does it have a locally-based and accountable team in your community? Is it financially strong? Does it really have your best interests at heart?

Don’t settle for anything less.

4. Is it worth it?

Knowing the price of something does not necessarily mean the same as knowing its value. At NFU Mutual, we always aim to provide cover at a price which offers real value.

It can be easy to be seduced by a low cost – we all love a bargain. But always be clear exactly what is on offer. Check for any hidden costs, such as charges for payment by direct debit and mid-term policy adjustments. And ask if you will be rewarded with discounts for your continued loyalty as a customer.