What happens when someone makes a farm liability claim?

One of the most important types of farm insurance you can organise is farm liability insurance.

What does it do?

According to Ken Bolton of the Centre for Dairy Profitability, the purpose of farm liability insurance is two-fold. It's there to "make payments on your behalf to an injured party", as well as ensure you're protected if a third party holds you responsible for a personal injury or property damage.

If someone makes a claim ...

In the event that someone makes a claim against you, remember not to admit liability or tell the injured party that you will provide them with compensation. You should also not discuss the claim with anyone but your insurance provider, and make sure you provide them with all correspondence, etc., between you and the injured party.

What happens if they're successful?

The injured party will have to prove that you are to blame for the damages they have experienced. If they're able to do this, Elders Insurance may be able to cover you for the following:

- Any compensation awarded to the injured party for a personal injury or property damage, up to the sum insured as outlined in your policy.

- The legal costs that we may incur as a result of defending you against the claim.

- All "reasonable expenses" that you've faced and we've agreed to cover you for in writing (this excludes loss of earnings).

- In the event of personal injury, any costs for emergency or first aid treatment that you had to cover as a result of the accident.

In some cases, a successful liability claim could set you back thousands of dollars. So, having farm liability insurance is vital, as it will ensure you are not substantially out of pocket if a third party makes a claim against you and wins.