The Importance of Livestock Insurance in Australia
The livestock industry in Australia is a multi-billion dollar industry that creates over 400,000 jobs for the economy. Farms, ranches, and other businesses that rear or house livestock can protect themselves against the loss of valuable animals by investing in livestock insurance.
We break down some of the key features of livestock insurance and why it’s crucial for those in the livestock industry.
What is livestock insurance?
This is a specialised type of insurance that covers the death, injury, or loss of use of individual or herd animals. These types of policies are usually designed for standard farm animals such as cattle, rams, horses, poultry, and goats. However, it’s also possible to cover against losses of other types of livestock, including exotic and aquatic animals.
Why is it important?
From rearing cattle and lot feeding to export markets, the nature of the livestock industry is varied and specialised. Transporting livestock from a farm to a market, for example, involves a considerable amount of risk due to unpredictable circumstances. Things can and do go wrong, and farmers need to account for accidents and mishaps that happen when livestock is either on-site or in transit.
A livestock insurance program
This program compensates or replaces livestock that dies, has to be put down, or is stolen. Business needs to determine the animals they own and the purposes they serve before choosing the types of insurance.
For example, a large cattle ranch needs different coverage than a family-run dairy farm that owns only a few cows.
All livestock policies are different and have exclusions such as the death of a cow as a result of calving, or the death of an animal from disease or old age. There are a lot of restrictions in relation to the offloading and agistment of livestock during transit which can see insurance coverage cease. For example, you may not necessarily be covered for an animal that breaks a leg while in transit.
It’s important to understand the consignment notes and terms and conditions of your livestock insurance policy. While insurance will cover the value of an animal, it will not cover any consequential loss or damage. Another important thing to note is that truck insurance does not automatically cover livestock transport. This means that a motor policy would need to be modified to suit your livestock requirements.
How much does livestock insurance cost?
The cost does vary and there’s usually a limit to how much is covered per animal and for the whole herd. To give you a bit of guidance, below is a list of starting prices for insuring livestock in transit:
- $910 for $100,000 coverage
- $1160 for $200,000 coverage
- $1860 for $500,000 coverage
Coverage is generally only for basic risks such as fire, flood, collision, overturning, theft, etc. Like any type of insurance, it’s essential that you outline exactly what coverage you need and add any additional coverage to your livestock insurance package if necessary.
We understand the value of your animals. Find the best insurance products right here with Truck Insurance HQ. Get personalised advice from one of our experienced consultants on 📞1300 815 344. Or request a FREE quote online 📝 for the most affordable rates on livestock in transit insurance ⬇️