Risk management and hay storage are hot topics among farmers and insurers following a number of hay stack fires over past seasons.
Insurers are looking at the shed sizes, baling practices and asset protection to better understand the risk of insuring hay. At the same time, it’s important that farmers look at how to better risk-manage their livelihood.
At MGA we have assisted clients through similar losses in recent times and can share some insights relating to what we have seen as effective risk management practices, along with items you may like to consider when reviewing your insurance.
When reviewing your insurance, it pays to review your sums insured thoroughly. Don’t forget to include:
- Council planning requirements at the rebuilding stage (water storage, plumbing, council application fees & MFS fittings);
- The removal & relaying of the pad, even the rubble can crystalise due to the high temperatures involved & require replacement;
- Removal of debris – knocking down & removal of the remaining structure inc tip fees; and
- Fire fighting costs, including the hire of an excavator to assist with spreading the hay to extinguish the fire.
Risk management measures that have been taken by some clients include:
- Installation of a Gazeeka Moisture Metre to identify high moisture bales as they are baled, with these bales then stored separately in a cleared area and monitored;
- The use of hand held moisture probes to test every bale before they are stacked in sheds;
- Installation of surveillance cameras;
- Padlocking all gates;
- Amending an induction program for harvest casuals to emphasise the potential outcomes should procedures not be followed;
- Splitting a replacement shed into two sheds to reduce the impact on the business in the event of a fire.
These are just some examples of what we have seen in our experiences but should not be taken as general advice as each case is different.
If you would like to review your insurance or get advice specific to your circumstances, please don’t hesitate to contact your nearest MGA Insurance Broker.
For more information go to www.mga.com