A Hertfordshire farmer recently had to spend thousands of pounds to get rid of 40 tonnes of fly-tipped waste from her property.
However, far from a one-off extreme case, the incident was an example of a much larger issue for farms.
According to the BBC, The National Farmers' Union has estimated “that at least two-thirds of farmers across the country have been affected by fly-tipping.”
Not only is fly-tipping common, but it seems to be getting worse.
“A 2024 NFU survey of 620 members revealed that 48% observed a worsening fly-tipping problem over the past five years. Additionally, 54% experienced small-scale fly-tipping on their farms, while 30% encountered large-scale incidents” reported the Chartered Institute of Environmental Health.
David Orrell (pictured), director of agriculture and rural specialist services at Sedgwick, stated that fly-tipping can be an expensive ordeal for the landowner, and insurance brokers have a key role in helping farmers clean up the mess.
“Fly-tipping can expose the landowner to expensive clean-up costs, depending on the nature of the material that has been illegally abandoned,” he said. “For the landowner to be protected by a policy, the broker needs to advise their client to include environmental liability cover.”
According to the ABI, “environmental liability insurance covers the cost of repairing environmental damage arising from both common law claims, and claims arising from UK and EU legislation.”
Environmental liability cover is not only essential for protecting farmers from pollution-related damage, but also the financial burden of fly-tipping clean-ups.
Orrell stated: “The primary purpose of environmental liability cover is to protect the insured against pollution-related environmental damage to their own and third-party land caused by farming activities. However, this cover extension also provides cover for fly-tipping, with some insurers limiting their liability for any one event to a set amount, such as £10,000..”
Fly-tipping is an important insurance consideration for farms as it is more than just an eyesore.
Orrell warned: “Fly-tipping can cause fatality to livestock through ingestion. Even what may appear benign dumping of green garden waste can be fatal to sheep and cattle.”
Fly-tipping can also impact product directly and cause animal or human suffering:
According to Orrell: “Dumped material such as wire can be innocently embedded within baled produce and sold on as feed or bedding, exposing the producer to significant claims for injury or death of livestock, or even product recall issues. If such fly-tipped material – such as glass, for example – enters the human food chain, the consequences can be catastrophic.”
While environmental liability cover is a crucial component, it is not the only protection farmers need.
Public liability insurance should also be included in a well-rounded farm insurance policy.
Orrell advised: “Combining public liability and environmental liability covers will give the farmer the best possible protection available from UK insurers. The combination of covers should provide legal protection for the farmer, protecting their interests against third-party claims where there is no legal liability.”
Brokers must take the time to understand the specific needs and risks associated with each client’s operations.
Orrell emphasised: “All sections of covers available on a farm combined policy should be considered and tailored by the broker to meet the requirements of the customer. Alongside property damage protection, revenue cover and liability exposures require careful consideration, and the nature of the farm risk must be correctly presented to the insurer to include all forms of diversification.”
Cover extensions will also be essential in certain cases.
Orrell states “For agricultural contractors and warehouse risks, for example, cover extensions are essential to protect against non-standard farming operations such as third-party crop spraying, pure economic losses and storage exposures for third-party property.”
For brokers, it is imperative that they know the business well.
As Orrell implores, “The broker’s detailed understanding of the customer’s business is crucial. No two farms are the same.”
