If you want to reduce the farm’s insurance costs, please follow the insurance company’s approach. reduce risk.
The farm is full of dangers. Weather, accidents and theft are all waiting to be the focus of any farm. In some cases, they may steal the show forever.
“What keeps me out of the game forever?” It is a good starting point when considering insurance and self-insurance with the agent. Blair McClinton, head of SGI Regina’s agricultural insurance team, said: “Ask yourself, if I don’t have enough insurance, it will cause serious harm to me.
Beginning a few years ago, the professional departments of insurance companies helped producers choose insurance from the perspective of farmers.
“Everyone wants to lower their premiums, and you can usually do it. But at some point, you will transfer the risk from others to yourself. Making the right choice for your farm and business requires consideration. “He said.
Increasing the number of deductibles can immediately reduce policy costs. The higher deductible will also send a message to the insurance company that unless a very serious accident occurs, the manufacturer does not intend to charge for the plan.
McLinton said: “Most producers can afford higher deductibles because they tend to have less requirements for small claims.”
Even a small claim will make the future premium cost far exceed the value of the claim, so in the long run, choosing not to claim is a financially wise choice.
“But you need to ask yourself if you can take this risk. If you self-insure something, what will you do to minimize the threat of making a claim,” he said.
Cleaning up near farmhouses can reduce the chance of the fire spreading quickly and exceeding the control point. Fire prevention around the yard can prevent or slow down the speed of fire entering and leaving the yard.
The scope of liability for potential losses to neighbors or employees caused by farm activities is an important part of any agricultural insurance policy.
The use of provincial workers’ compensation plans can limit the threat of costs, and costs can quickly lead to bankruptcy of many farms.
McLinton said: “WCB insurance or ensuring that you provide the appropriate level of other insurance for the people you work for is crucial.”
“WCB is one of the ways you can help acquire and retain employees. Good farm workers are difficult to attract and retain. This is the best expectation,” he said.
Employment companies suggest that many experienced farm workers will not consider employment without it. If they are injured in a non-existent job, they may have to sue their employer and their insurance company for compensation, leaving them in trouble without income, because they have been working in court for a long time and have to pay Big expenses. Legal agency fees.
When there is a threat of heat reversal the next morning, not choosing to spray at night is another way to reduce the risk of claims.
“Do you have neighbors doing organic operations? When you get close to their fields, think about your spray, if there is some drift, what will they do,” he said.
Ensuring that the machine is well maintained can also reduce the risk of claims. Although the insurance policy will not pay for the bearing failure, if the bearing causes the combine to burn, the insurance may eventually pay for it.
He said: “The use of fire extinguishers on all equipment, including maintenance trucks, can solve problems before they are solved.”
McLinton said: “Many farms have placed fire-fighting water tanks and pumps in the field, just in case something bigger happens.”
Older buildings usually have older wiring, and the investment in hiring a local electrician to understand its condition and advise on what potential threats are and how to minimize it is relatively small, which is also a good investment.
“Especially if you choose not to take insurance. You have transferred the risk to you and you need to minimize it,” said the agriculturist.
Anchoring grain bins to avoid wind damage is another measure that growers can take to reduce the risk of loss and other damage to the farm or equipment, and some insurance companies will reduce premiums so that if an anchor is installed, it will almost To pay the cost of the anchor.
Buildings with sewage treatment systems can be equipped with check valves and return valves to prevent the sewer from flowing back into the farmhouse or shop in the event of a flood. Discounts are also available for the installation of these systems.
McLinton said: “For example, if you take a little time in winter, they can also give you peace of mind.”
“If you want to provide insurance, what do you want the customer’s best practices to reduce risk? That is what you want to do on your own farm. Moreover, insurance companies usually reward for this,” McLinton said.
Installing a security system on the camera usually reduces premiums, but it can also deter thieves. The modern security system provides a real-time view of the farm, as well as a log file of what happened when the farmer was absent.
It is important to evaluate the building and content correctly, because if a partial loss occurs, the insurance company will only provide the correct proportion of the claim. For example, if the replacement cost of a building is US$300,000, and it is insured for US$200,000, and it is half destroyed by the wind, the coverage will only be paid for US$100,000 instead of the US$150,000 required for repairs.
Although this may not reduce insurance costs or bring risks, farmers should also take a thorough picture of the farm and record farm tools and other equipment that are easily stolen or lost in a fire. These records make it easier to resolve claims and ensure that the full insurance coverage can be found when it is necessary to call the card.
Western producers are the most respected agricultural paper in Western Canada. Strong and stable for 95 years, Western producers have won the trust of farmers and advertisers. Week after week, it provides farmers with the information they rely on.
Post time: Mar-17-2021
