The Right Insurance Products Can Secure Peace Of Mind

Weighing up the pros and cons of the insurance products available to SA farmers can be tricky, but expert advice is available.

- Dawie Maree

In the current uncertain environment, and under today’s volatile climatic conditions, managing a farm or agribusiness requires more time, effort and money then ever. Insuring your investment is therefore important, but unfortunately it can also be extremely expensive.

Cover can be obtained only for insurable risks; some risks need to be managed by the farmer. An example of this is insurance for sheep. With theft of these animals being so widespread, this risk is seldom covered, and where it is, premiums are prohibitively expensive.

At the other end of the spectrum are large-scale disasters. These can be so unpredictable and all-encompassing that it is difficult to obtain insurance as an individual. In some cases, even insurers and re-insurers are unable to underwrite insurance for natural disasters.

Nonetheless, insurance remains an important management tool, especially when a farmer applies for production financing and has insufficient collateral.