AFTER all the uncertainty that 2020 presented, it is unsurprising that we are seeing more and more smallholders and farmers taking steps to ensure the longevity of their livelihoods and choosing to diversify.

As we settle into a new type of normal now, Chris Clements Director for H&H Insurance Brokers gives advice as to how you can protect yourself and your business by ensuring your insurance policy covers all liabilities.

After lambing, calving or foaling, update your insurance to reflect any increases in livestock. For many at this time of year, the number of livestock is often to above levels that the insurance was originally taken out for. So check the details of your policy, otherwise your insurance won’t cover the entirety of your loss should you need to make a claim.

It is also important to insure pedigree livestock separately, both entire flocks and herds, or individual animals. Even values for standard livestock are at an all-time high so making sure your insurance reflects this can spare you from potential disaster should anything amiss occur.

Tourism

AS COVID restrictions are eased, people are being drawn to staycations. From rural tourism such as glamping pods and holiday lets, to transforming land and buildings into wedding and occasion venues, launching new ventures can be an attractive choice to help bolster income.

However, as exciting as the prospect can be, for those looking to capitalise on this potentially lucrative source of business, a note of caution, diversification poses its own businesses risks, especially if you are entering into a field you have little experience in. There is sometimes an assumption that an existing farm insurance policy will suffice as cover, but that is not always the case.

Increasing numbers of people are choosing to walk in the countryside, which is a positive trend witnessed since lockdown measures were first introduced. However, for farmers this can pose a problem because as soon as the public come on to private land, there is a higher exposure to liability claims. So you need to check what your duties and obligations are, and if you have a public footpath crossing your land, Public Liability insurance is a must, as is keeping on top of footpath and fence maintenance.

Accommodation Services

If you provide accommodation when updating your insurance you need to provide the kind of ‘service’ you offer. For example, if it is just a place to stay with no cleaning or food provided, this as non-serviced accommodation. If you were to add these services, it would be considered serviced accommodation.

Non-serviced offerings, is essentially renting out a space for a time period with agreed facilities. For this a specific holiday home insurance policy is required, and this can usually be added to a typical Farm Insurance policy. Importantly, this would include loss of rent or alternative accommodation cover. The benefits of this are evidential following the pandemic and resulting lockdowns, in which holiday rentals had to close.

Serviced accommodation, is when rental of the space comes with added services such as breakfast, bedding changeovers, or even provision of afternoon tea and cakes. This insurance policy is tailored to the specific type of accommodation, to include buildings, contents, business interruption, public and employers’ liability.