It has launched key person cover specifically aimed at farm owners, managers, sharemilkers and contract milkers who were new to the industry.
Adrian Riminton, Fidelity Life’s chief distribution officerr, said the early years in business for new farmers could be financially risky and involve high debt levels.
“If illness or injury strikes them or a key employee and they’re unable to work, they could struggle to keep their business going. Key Person Cover for Farmers helps cover the cost of a replacement while they recover.
“The sustainability of the rural economy relies on new talent coming through. Previously it’s been difficult for this group, particularly if they’re young, to apply for income protection or key person cover because they don’t have enough business experience or the financial track record.”
Farming is one of the country's most dangerous industries.
According to Worksafe and ACC, farm workers are more likely to have serious accidents than the people they work for. About 20% of farm accidents are caused by manual handling, with injuries to the lower back and spine the most common and most expensive.
“With its less onerous application criteria, we expect this new cover to have real appeal. Farmers are already under financial pressure, and it’s important for new farmers in particular to have insurance protection in place to ensure their business continues to function when they can’t,” Riminton said.
To apply, farmers need 12 months' experience and must meet revenue and ownership criteria. There are no ACC offsets.
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