Acres Insurance Brokers is warning farmers to ensure they have sufficient sums insured within their farm policies to cover replacement input costs, given the continued increase in fertiliser prices.
“Fertiliser prices have been going stratospheric,” said Nigel Wellings, director and insurance broker with Acres. “I have had clients that have seen costs more than double, paying around £280 per tonne for ammonium nitrate orders back in June and July, while today the equivalent is approaching £700. However, very few farmers will have stopped to consider the insurance implications of this huge hike.”
On many traditional farm insurance policies, fertiliser will be insured against fire, vandalism and theft as part of produce and deadstock. This requires the farmer to set the sum insured at the correct value to replace the produce or product, such as fertiliser for example.
“For growers that have already had fertiliser delivered, or are expecting to take delivery, they need to ensure that the produce and deadstock sum insured is drastically increased to ensure they have full coverage for the replacement value,” said Mr Wellings.
If the sum is not correct, in the event of a claim they will be under-insured and will only receive a percentage of the replacement value. The policies sold by Acres Insurance Brokers automatically include cover for the replacement cost of all inputs, under the crop business interruption insurance.
“This means that as long as your total crop value is correctly insured, the replacement cost of all fertilisers and agrochemicals is automatically insured, with no need to increase values. This is a major advantage of this type of insurance cover in the current rising fertiliser market,” said Mr Wellings.
For more information go to www.acresinsurance.co.uk
