What does farmer insurance cover?: How it works

Farmers’ Civil Liability

Farmers’ civil liability insurance is compulsory. The obligation to conclude an insurance contract arises on the day of taking possession of a farm. The insurance protects against the financial consequences of damages caused by the farmer having a farm. Compensation is paid to third parties for damage caused not only by the insured farmer but also by persons with whom he/she lives in the same household and by persons working on the farm.

The insurance covers damages caused in connection with the farmer’s possession of a farm, resulting from:

  • death,
  • body injuries,
  • health disorders,
  • loss, destruction, or damage to property.

As part of the package offer, farmers’ civil liability insurance may be supplemented with compulsory insurance of buildings included in the farm, as well as voluntary insurance:

  • agricultural machinery (Agrocasco),
  • property belonging to the agricultural holding,
  • Civil liability insurance in private life,
  • Consequences of Personal Accidents (NNW).

Benefits and advantages of insurance:

  • 10% discount on compulsory insurance for any voluntary insurance,
  • installment payment – up to 4 installments,
  • the possibility of adjusting the package to the individual needs of the farmer.

Agricultural buildings insurance

Insurance of farm buildings against fire and other random events is compulsory and provides basic protection against the effects of random events. The obligation to conclude an insurance contract applies to buildings with an area of ​​more than 20 m² owned by a farmer. New buildings should be insured on the day they are covered with a roof.

The insurance entitles you to compensation for damages to agricultural buildings as a result of random events in the form of:

  • fire,
  • hurricane
  • flood,
  • flooding,
  • torrential rain,
  • hail,
  • snowfall,
  • lightning strikes,
  • explosion,
  • landslides,
  • bumps,
  • avalanches
  • fall of the aircraft.

Compensation is paid up to the number of sums insured, which are determined separately for each building.

Agricultural crop insurance

Farmers who obtained direct payments are obliged to insure their crops against the risk of damage caused by flood, drought, hail, and the negative effects of winter or spring frost. The insurance obligation is deemed to be fulfilled if, from 1 July of the year following the year for which the farmer obtained direct payments, for a period of 12 months, at least 50% of the area of ​​crops specified in the Act is covered by insurance protection from at least one of the above-mentioned risk.

The insurance provides, depending on the selected scope, protection of crops against damage caused by:

  • hail,
  • negative effects of wintering,
  • spring frosts,
  • hurricane,
  • torrential rain,
  • lightning,
  • landslides,
  • avalanche
  • flood,
  • I’m drought
  • fire (insurance not subsidized).

You can cover the crops with insurance:

  • cereals,
  • maize
  • rape,
  • turnip rape,
  • hops,
  • tobacco,
  • potatoes,
  • sugar beet,
  • ground vegetables,
  • fruit trees and shrubs,
  • strawberries
  • legumes.

Benefits and advantages of insurance:

  • insurance protection of crops against the effects of random events,
  • an additional payment of up to 65% of the insurance premium from the state budget,
  • securing the financial liquidity of the farm in the event of crop damage.

Subsidized crop insurance contracts are concluded until the limit of subsidies for a given year is reached. The amount of the subsidies is defined annually in the Regulation of the Council of Ministers. The policyholder pays the premium less the amount of the additional payment.

Livestock insurance

The insurance protects livestock against the risk of damage caused by:

  • hurricane,
  • flood,
  • torrential rain,
  • hail,
  • lightning,
  • landslides,
  • avalanche
  • slaughter of necessity made as a result of the above-mentioned events,
  • fire (unsubsidized insurance, not applicable to poultry),
  • electric shock (insurance not subsidized, not applicable to poultry).

The following farm animals can be covered by insurance:

  • cattle,
  • horses,
  • sheep
  • goats,
  • poultry,
  • pigs.

The condition for concluding the insurance contract is that all farm animals of a given species owned by the Insured are covered by insurance.

Benefits and advantages of insurance:

  • the insurance provides insurance protection for farm animals against random events,
  • an additional payment of up to 65% of the insurance premium from the state budget,
  • the compensation allows the herd to recover faster.

Subsidized livestock insurance contracts are concluded until the limit of subsidies for a given year is reached. The amount of the subsidies is defined annually in the Regulation of the Council of Ministers. The policyholder pays the premium less the amount of the additional payment.