Farm diversification on the increase

Farmers are increasingly seeing diversification as a bigger part of their long-term income, a trend set to continue over the next five years.

With the demise of BPS, that figure is set to grow.

For many farmers diversification is now essential to keep a decent income flowing into their business with high input costs seriously affecting profitability in every sector of agriculture.

Future farm diversification plans are also being radically changed by the ongoing energy crisis.

A poll revealed that seven in 10 farmers believe that renewables are now the enterprise most likely to be successful in the future.

Anyone who is diversifying their farming enterprise needs to ensure that from the outset they are properly insured.

A new business brings with it new risks so having the correct cover is essential.

If you are planning a new project you must check with your broker to establish whether you need alternative or additional cover.

Key questions relating to insurance:

– If you need to take on new staff, are they covered by employers’ liability insurance?

– Are all business activities insured for public or products liability?

– Are all revenue streams insured in the event of a material loss?

– Have risk assessments been carried out on any new activities involving members of the public?

– Have you purchased any air pressure or lifting equipment for new projects? If so, do you have engineering inspection insurance?

– If you plan to add play equipment or hot tubs for paying guests, have you told your insurer?

– Have you considered business interruption insurance to cover losses in the event of bad weather, equipment failure or illness?

Keith Fowles is the owner of KLF Insurance Brokers