Livestock insurance

For more on this part of the insurance industry:

1. visit our farm insurance page for a look at all products in this sector
2. or focus in on all of the livestock insurance products available on IB Markets!

What is livestock insurance? 

Livestock insurance provides financial protection to Australian farmers against losses caused by accidents, theft, disease, or natural disasters.  

With Australia's red meat and livestock industry valued at $81.7 billion in 2024, livestock insurance plays a vital role in both the economy and culture. Events like the 2019-2020 bushfires, which killed thousands of livestock, highlight the importance of insurance in helping farmers recover quickly. 

Australia's diverse and unpredictable climate creates unique risks for farmers, from droughts to floods. Livestock insurance supports not only large-scale graziers but also small farmers who depend on their animals for income.  

Livestock farming has been a cornerstone of rural communities, with policies tailored to safeguard animals like cattle, sheep, goats, and horses. 

Livestock insurance: industry trends and emerging risks 

The livestock industry in Australia faces growing challenges that impact productivity and profitability. Issues like animal welfare standards and environmental concerns require updated insurance solutions. Additionally, climate change and sustainability pressures are pushing farmers to adopt more resilient practices. Other key concerns include: 

• industry suitability of farm packs: many farmers question whether traditional farm insurance still meets modern needs, as risks and operations evolve 

• extreme weather impacts: severe flooding across key regions highlights the devastating effects of unpredictable weather on livestock and farming infrastructure 

• elevated bushfire risks: Australia’s increased risk of bushfires due to rising temperatures and droughts has amplified livestock losses and financial stress 

These emerging risks make it essential for farmers to adopt strong livestock insurance and biosecurity measures to protect livestock from such concerns, including disease outbreaks. Effective management through vaccines, parasite control, and preventative care helps safeguard animal health and maintain productivity.

Livestock insurance FAQs 

What is a livestock policy? 

A livestock policy provides financial protection for animals like sheep, goats, and cattle raised for food, fibre or trade. It safeguards farmers and their businesses. 

What does a livestock insurance policy typically cover? 

Livestock insurance policies usually include coverage for: 

• death caused by accidents, disease, or natural disasters 
• theft or loss of animals 
• transit-related risks during animal transportation 
• veterinary costs related to disease diagnosis and treatment 

What is the penalty for stealing livestock in Australia? 

Under Australian law, livestock theft is a serious crime, punishable by up to 14 years in prison under section 126 of the Crimes Act 1900 (NSW). This strict penalty reflects the severe impact livestock theft has on farm operations and profitability. 

Who typically needs livestock insurance coverage? 

Livestock insurance is essential for various stakeholders in Australia, including: 

• farmers and graziers 
• livestock breeders and feedlot operators 
• livestock transport companies 
• exporters and meat processors 
• Indigenous land managers and rural landholders 
• hobby farmers and small-scale producers 

Is livestock insurance only for large-scale farmers? 

No, livestock insurance is suitable for farms of all sizes. Small-scale farmers, hobby farmers, and rural landholders can access policies that match their specific needs and budgets. 

What is the biggest threat to livestock? 

Climate change is the biggest threat to livestock worldwide, causing extreme weather events like droughts, floods, and heatwaves. These conditions disrupt food and water supplies and increase disease risks to animals and businesses. 

In Australia, climate change drives bushfires, droughts, and floods, making it the greatest challenge for farmers. Such disasters lead to animal losses, damage grazing land, and disrupt farm operations.  

Effective livestock insurance and sustainable management practices are essential to help Australian farmers address these challenges. 

What is the most common disease in livestock? 

Bovine respiratory disease (BRD) is one of the most common illnesses in Australian livestock, significantly affecting cattle health and productivity. Historically, foot-and-mouth disease has been one of the most devastating livestock diseases worldwide. 

How does livestock insurance address disease outbreaks? 

Livestock insurance provides financial coverage for animal deaths, veterinary costs, and business interruptions during outbreaks. Policies help farmers implement biosecurity measures and recover losses quickly. 

What are the five freedoms of livestock? 

These are basic guidelines for animal welfare. They include: 

1. Freedom from hunger and thirst: gaining proper diet and fresh water 
2. Freedom from discomfort: providing shelter and comfortable living conditions 
3. Freedom from pain, injury, and disease: early detection, quick diagnosis, and effective treatment 
4. Freedom to express normal behaviour: adequate space, proper facilities, and the company of other animals 
5. Freedom from fear and distress: ensuring care and environments that prevent mental distress 

In Australia, the five freedoms guide farmers to provide better care for animals.