As most businesses will have experienced in the last few years, insurers are becoming more and more stringent about the conditions under which they will provide cover. Not only are there more conditions associated with cover, but often cover is contingent on a change, whether that be a new alarm, a valuation, or otherwise.

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Why do I need rural risk management?

From an insurance and premium perspective, a farming or rural business that has strong risk management has benefits in the short and long term. Once implemented, a risk management strategy can:

• Save you money on your insurance premiums.

• Protect your business, property, and people.

• Improve business resilience by having a plan in place, giving insurers confidence that you can recover from an unfortunate event.

• Provide opportunity, which puts you ahead of the competition while helping you obtain best terms from insurers and suppliers.

• Improve business reputation through a good safety culture.

• Provide peace of mind to both you and your insurer.

Farm inspections

Almost everyone is aware of their statutory requirements under the Provision and Use of Work Equipment Regulations 1998 (PUWER). This governs the likes of LOLER, Pressure Equipment regulation and the Provision of PPE Regulations.

Many policyholders will also have noticed the increasing push for farm buildings to have a valid electrical inspection certificate. An estimated 89% of fires are caused by electrical products, supporting the push from insurers to better protect against the risk of fire. Residential Lets should have their electric installations inspected at least every 3-5yrs Commercial Buildings such as shops and offices should be inspected every 5yrs and everything else between 1-5yrs depending on the age of the installation and the nature of the business or tenants business.

Farm valuations

Whilst each policy is slightly different, one thing is constant. When it comes to a loss being able to prove what you had and what it was worth is a requirement of any claim. Valuations don’t just apply to buildings, but contents, valuables, classic cars and more.

It should be self-evident that building sums insured need to be accurate. Declared values should represent their true reinstatement cost at policy inception and cater for inflationary costs during the insurance and subsequent reinstatement periods. Subject to compliance with the Insurance Act 2015 and the breadth of insurance protection this will prevent insufficient claims settlement should buildings suffer insured damage.

Commercial Legal Expenses

Legal expenses if often overlooked as a Risk management product, however for Small to Medium sized businesses it can be an invaluable insurance product when a legal dispute arises.

At CLA Insurance we are committed to making your insurance a management tool, and are doing this by providing Risk Management solutions to help you identify, manage and reduce your risks. This ensures that your business continues to run smoothly, in a balanced and safe manner.

How do I check my risk management?

If you’d like to discuss any aspect of your risk management, contact one of the team today on 03301 658 940 or email insurance@cla.org.uk

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