5 Forms of Insurance to Protect Your Agric Business | #IBNInsights

The structure and production patterns of the Agricultural sector has changed significantly over the years. The advent of technology has created a more intensified and specialized production process. Therefore, running a farm involves hard work and is prone to certain risks which affect the whole agricultural sector and farmers.

A major risk is Flooding. This peril is an environmental problem that farmers have struggled with for a very long time. It was reported recently that flood destroyed 280 hectares of rice farms in Edo State. Flood is a constant threat to agricultural production in Nigeria and as the owner of a farm; you can protect yourself, family and business by purchasing the right insurance policies.

At Insurance Brokers of Nigeria, we have different robust insurance plans that you can benefit from. Some of these policies are statutory requirements while others are commercially based.

Statutory Insurances 

Employers Liability /Group Personal Accident Insurance: This fills in the gap with the Employees Compensation Act as mandated by law. If a worker on your farm is injured on the job, this insurance coverage will provide compensation for  all associated medical cost

Group Life Assurance:  As an employer of labour you are mandated by law to have Group Life assurance for your employees. This insurance compensates  descendants of any staff who dies in employment  .

Commercial Insurances

Equipment and Machinery Insurance: This insures against loss or damage to any equipment or farm implements damaged through accidental fire, falling objects or a natural disaster like a flood. They will be replaced based on their stipulated market values.

Commercial Vehicle Liability Insurance: You can insure all your heavy-duty vehicles in a single commercial vehicle insurance policy. This will protect you from liability in the event of a loss caused by a driver to any third party.

Crop Insurance: This provides reimbursement if you lose a large portion of your crops due to uncontrollable events such as heavy winds, drought, forest fires, extreme temperatures or flood.

Livestock Insurance: This provides cover for all animals and livestock (Such as chicken, fish, pigs, snails, turkey etc) if they die unexpectedly due to severe weather, disease or problems during transport, you will be able to replace them and continue with your business.

Product Liability: This form of insurance  is essential to protect against defective products. This insurances cover is available for all products and is not limited to farm produce and livestock.  As a farmer, you can insure your farm produce or livestock based on your expected revenue and in some cases you can insure against the non-sale of produce

 When searching for suitable insurance for yourself and your agricultural business, you will want to be certain that you are getting policies that provide sufficient coverage at a good rate.

Agricultural insurance is critical and remains an excellent investment decision to protect the legal and financial interests of farm owners. Insurance also serves as a form of security to financial institutions who may provide loans to a farmer. This is usually a lenders requirement prior to granting some loans. 

For the best forms of insurance for your business talk to us today at IBN.
Insurance Brokers of Nigeria Limited,
4, Ilabere Avenue, off McPherson Avenue, Ikoyi
Tel: 0700 -CALL- IBN (0700-225-5426)
Email: info@ibn.com.ng 

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