Liability Insurance :: News

Share this news item!

Agricultural Premiums Skyrocket Amidst Climate Uncertainty

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

With farming sectors across Australia feeling the financial pressure, many agriculturalists are battling climbing costs in insurance premiums, a challenge compounded by higher asset values and dramatic climate events.

The reality for producers is stark: Farm insurance expenses have surged, more than doubling within a four-year timespan, thrusting annual premiums well beyond the $100,000 mark for some. These rising costs are turning into a substantial financial burden, forcing farmers to reconsider their insurance strategies.

The agricultural community faces a dilemma as equipment and infrastructure values inflate alongside heightened insurance rates, which affects standard farming assets like high-end combine harvesters, now priced at over a million dollars each.

Ryan Milgate, grain grower and advocate for the Victorian Farmers Federation, observed a troubling uptrend in the cost of safeguarding essential farming machinery.

"Our insurance bills have gone up significantly, particularly post-COVID-19. We're seeing a surge driven not just by an increase in premiums but because the assets themselves have become costlier to replace," shared Milgate.

Within this fiscal strain lies an increased propensity for risk-taking. Farmers, particularly those who are not obliged by lenders to maintain comprehensive coverage for financed purchases, might opt to either partially insure their assets or even forgo certain insurance policies.

This shift is not confined to Victoria. Instances resonate nationwide, as reflected in the experiences of NSW Farmers Association's vice president Rebecca Reardon, who will be scrutinizing insurance renewals with a critical eye, trimming unavoidable excess from her farm's expenses.

While customers tighten their belts, insurers justify the steeper costs by pointing to the more venal aspects of the weather. Increased volatility brought about by climatic aberrations plays a prominent role in redefining premium calculations.

An example of the struggle against extreme weather is demonstrated by Queensland's Shannon Moss, whose farming business has been struck by droughts, floods, and hail within five years. For him, the feasibility of crop insurance is overshadowed by the sheer frequency of crop-damaging events.

Moss recently contended with a major financial loss, reflecting on a particularly devastating flood: "Just last month, we took a bruising hit, costing us almost a quarter-million dollars in lost produce-mostly immediate harvest-ready crops," recounted the Lockyer Valley grower.

An added source of discontent among farmers like Milgate is the rising premiums due to catastrophic events in regions far removed from their spheres of operation, impassioned by the need for an insurance system sensitive to local risk profiles.

Differentiating between high and low-risk farming areas could become an increasing topic of discussion. "Some have been lucky with favorable seasons-insurances are being met now. Yet in the face of harsher times, such increases will be much harder to manage," expressed Milgate, hinting at the broader implications for the industry should conditions turn dire.

Published:Saturday, 10th Feb 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

CHU Introduces Cyber Coverage in Strata Insurance Policies

22 May 2026: Paige Estritori

In a significant move to address the evolving risks faced by strata communities, CHU Underwriting Agencies has incorporated cyber protection into its residential strata insurance policies. This enhancement provides coverage of up to $50,000 for losses resulting from social engineering fraud, a type of cybercrime where perpetrators impersonate trusted contacts to manipulate payment instructions. - read more

QBE Introduces Comprehensive Add-Ons to Landlord Insurance Policies

22 May 2026: Paige Estritori

QBE Insurance has unveiled significant enhancements to its commercial landlord insurance offerings, introducing a suite of optional add-ons designed to provide more comprehensive protection for property owners. These strategic enhancements aim to equip brokers with additional tools to better serve their clients in a competitive market. - read more

Blue Zebra Partners with New Underwriters for Home and SME Insurance

22 May 2026: Paige Estritori

Blue Zebra, a prominent underwriting agency, has announced a new capacity arrangement for its home building and contents, landlord, and SME package products. The agency has partnered with a co-insurance panel comprising Chubb, AIG, and HDI Global Specialty, marking a significant shift in its underwriting partnerships. - read more

The Rise of Autonomous Machinery in Australian Agriculture

21 May 2026: Paige Estritori

In recent years, Australian agriculture has witnessed a notable shift towards the adoption of autonomous machinery. This trend reflects a broader global movement aimed at enhancing efficiency and productivity in farming operations. However, despite the growing interest, several challenges continue to impede widespread implementation across the sector. - read more

Click for more Insurance News

Business Insurance Articles

How to Assess Your Risk Exposure and Select the Right Indemnity Coverage

Professional indemnity insurance stands as a pivotal safeguard for Australian professionals navigating the intricacies of liability in their work life. This form of insurance is designed to protect professionals against legal costs and claims for damages arising from acts, omissions, or breaches of professional duty in the course of their practice. Whether it's due to an honest mistake or an unforeseen error, the ramifications of such professional oversights can be financially crippling. - read more

The Importance of a Custom Risk Management Plan: A Guide for Australian Entrepreneurs

In the fast-paced world of entrepreneurship, the only constant is change, and with change comes the inherent realm of the unknown – risk. Australian entrepreneurs, much like their international counterparts, operate in dynamic environments where unpredictability is a staple. However, the unique economic, legal, and environmental aspects of Australia demand a more localized understanding of these risks. Acknowledging this unpredictability is the first step towards mitigating potential threats to one's business venture. - read more

The Impact of Environmental Liability on Australian Business Operations

In today's ever-evolving business landscape, the significance of environmental sustainability and legal accountability is increasingly paramount. Australian enterprises, in particular, are encountering a growing need to understand and manage environmental liability. This reality not only influences corporate image but also carries substantial financial and legal ramifications. - read more

Understanding Liability Insurance: A Must-Read for Australian Small Business Owners

Liability insurance is a form of insurance designed to offer protection against claims resulting from injuries and damage to people or property. It covers legal costs and any payouts for which the insured party would be responsible if found legally liable. Intended to protect against claims resulting from injuries and damage to other people or property, liability insurance is critical for small businesses as it shields them from potentially crippling legal expenses. - read more

Start Here !

Knowledgebase

Indemnity:
A legal principle that stipulates that insurance policies should restore the insured to the financial position they were in before the loss.

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.