The importance of agricultural insurance

Agriculture

The importance of agricultural insurance

Published: 06 April 2020

In recent years, the rand value together with production challanges have put immense pressure on agricultural profits.

Santam Agriculture has a responsibility to help stimulate a positive environment for farmers, organised agriculture, and agri-businesses in South Africa.

We know your farm is important to you, regardless its nature or size. As your partner in Agri, we aim to make insurance even more accessible, affordable and appealing. We continue to invest in effective risk management in order to make a real difference in helping you create a sustainable future.

Today’s progressive farmers need products that cater for the insurance of all their crops and assets against the perils of modern farming. Santam Agriculture offers farmers and producers specialist knowledge and continued research into the science of crop damage, and has knowledgeable brokers to advise clients on world-class products – all under the yellow umbrella.

We have developed a unique product specifically for the vine industry that covers you, whether you are a co-operative producer, a private wine farms owner. We even cover your estates assets, including guesthouses, restaurants and tourist shops.

Our vine policy includes public liability protection, accidental damage to wine, wine tanks and related property, as well as warehouseman’s liability , products recall and products guarantee.

Product recall

Wine producers/manufacturers may, from time to time, recall certain products. Your cover include cost and expenses incurred in terms of the following :

  • correspondence and advertisements in the media to communicate the recall;
  • transport of the recalled products to the insured’s property;
  • investigations; and
  • sorting of and/or abolishing recalled products.

South Africa is currently the eighth largest exporter of wine in the world. It therefore makes sense to take out the necessary insurance to protect products and goods against damages or losses for products destined for countries abroad. Farmers and producers who export their wines to the European Union countries are covered against liabilities, but they can also take out an additional extension on the policy to protect their goods which are exported to the USA and Canada.

Warehousemen’s liability insurance

The Warehousemans Liability extension under the Agri policy is intended to provide cover to bonafide farmers who happen to store goods on behalf of neighbouring farmers.

This extension provides limited cover as it does not provide cover for the actual goods being warehoused/stored (on the basis that the goods themselves should be insured under the relevant Material damage section) but rather for any consequential losses should such goods be damaged.

 We frequently have farmers who may store produce on behalf of neighbouring farmers, perhaps due to the fact that they have storage facilities that their neighbours do not have.  They may charge for this service or provide these services for free.

The cover provided is not for any damage to the actual goods stored, but rather for any consequential losses arising should such goods be damaged. The intention of this extension is only for bonafide farmers who may have some exposure due to the fact that they are storing some goods for other farmers (whether for payment or not).

Products guarantee

Wine producers/manufacturers may experience that their produce is defective or faulty or fails to fulfill its intended function or for which it was manufactured, sold, supplied, installed, repaired, altered or treated by or on behalf of the Insured, once it has left the premises of the Insured for consumption,

The cover include cost and expenses incurred by the Insured and for which they become legally to pay and for,

-The removal, repair alteration, treatment or replacement of any Product, should wine and related products do not perform as specified, warranted or guaranteed

The cover is not restricted to South Africa and the Territorial limits a defined, but worldwide with the exception of USA and Canada, unless Extension USA & Canada Liability have been specified in the Schedule to be included. 

Did you know?

Our agricultural policy is extended to include the following 24-hour services/cover free of charge: 

  • Crisis line – A 24 hour service where trained nurses and paramedics take control of emergency situations like attacks, housebreakings, hijackings, trauma counselling and other medical emergencies.
  • Emergency medical services – A service that offers appropriate emergency evacuation and transportation by ambulance, helicopter and fixed-wing aircraft. 
  • Personal health advisor – Have emergency medical advice, an audio health library, general health info, a drug database and counselling at your beck and call. This service cannot only relieve an emergency, but prevent one too. 
  • Legal assistance – A 24 hour advice line, manned by experienced in-house attorneys. They offer expert advice in labour law, general legal advice, legal documentation and many other fields of legal expertise that you may require.