Fidelity Life has rolled out a new insurance product for those who are new to the farming industry, aiming to make it easier to cover workers in an often-dangerous industry that relies heavily on the presence of its staff.
Fidelity’s Key Person Cover for Farmers is geared towards farm owners, managers, sharemilkers and contract milkers who are new to the sector and at the beginning of their career path. According to chief distribution officer Adrian Riminton, the first years in business for new farmers can often be financially risky and can involve high levels of debt.
The new policy will help cover the cost of a replacement if a key employee is struck by illness or disability, with new farmers only needing 12 months’ experience in order to apply for cover.
“If illness or injury strikes a new farmer or a key employee and they’re unable to work, they could struggle to keep their business going,” said Riminton.
“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 financial track record.
“With its less onerous application criteria, we expect this new cover to have real appeal.”
Farming is one of New Zealand’s highest-risk industries for accidents and injuries, with injuries to the lower back being the most common and most expensive to treat. According to data from Worksafe and ACC, farm workers are more likely to have serious accidents than their employers, and 20% of all farm accidents are caused by manual handling.
The product rollout follows Fidelity’s financial relief offer to farmers affected by mycoplasma bovis earlier this year, which allowed affected farmers to put premium payments on hold for up to six months.
“Farmers are already under financial pressure,” said Riminton. “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.”
