Farm insurance: what it covers and who arranges it

What farm insurance is and who needs it

Farm insurance is usually sold as a farm pack. It is a single policy with sections for the farmhouse, sheds, machinery, fencing, livestock, crops, liability and loss of income. It suits broadacre, grazing, dairy, horticulture and hobby farms, with different sections chosen for each.

Most sections are optional. A few covers are compulsory or commonly demanded:

  • Workers compensation: required under state and territory law if the farm employs workers. Rules and thresholds differ by state.
  • Compulsory third party (CTP): required to register a vehicle in every state and territory.
  • Public liability for permits: some permits carry an insurance condition. NSW Local Land Services, for example, asks for at least $20 million public liability cover to move livestock on public roads.

Lenders usually expect buildings and major machinery to be insured.

What is usually covered, and common exclusions

Sections commonly offered:

  • home and contents for the farm residence
  • farm buildings, fixed plant, fencing, hay and stored grain
  • mobile machinery such as tractors and headers, including breakdown
  • livestock deaths from listed causes, and stock in transit
  • growing crops, usually for named perils such as fire and hail
  • public and products liability
  • farm business interruption
  • farm vehicles.

Common exclusions and limits:

  • drought, which standard crop and livestock sections do not cover
  • flood damage, particularly to fencing and pasture, unless added
  • livestock disease, unless specifically insured
  • wear and tear, rust and vermin
  • liability for spray drift or aerial work, unless declared
  • contracting, farm stays and other off-farm or side businesses, unless declared
  • reduced payouts where sums insured are too low.

How it is sold, and when a broker is the usual route

  • Brokers: much farm cover is arranged by brokers, often rural specialists based in regional towns.
  • Insurer agents: some rural insurers sell through local agents or agribusiness outlets, which represent that insurer only.
  • Underwriting agencies: specialist agencies write crop, livestock and bloodstock cover on behalf of insurers, generally through brokers.
  • Direct insurers: a small number sell farm or hobby farm policies directly.

A broker is the normal route for a working farm. The mix of home, business, vehicle and liability risks rarely fits a standard online form, and crop cover has seasonal cut-off dates. Check whether an adviser is a broker acting for you or an agent acting for one insurer. Check licences on the ASIC professional registers.

What makes farm cover hard or expensive to get

  • Bushfire, flood or cyclone exposure. The cyclone reinsurance pool includes farm residential cover.
  • Distance from a fire brigade and from repairers.
  • Older sheds and unprotected hay storage.
  • High-value machinery, and long waits for parts.
  • Intensive operations such as feedlots, piggeries and poultry sheds.
  • Visitors on the property, including farm stays and pick-your-own sales.
  • Past claims.

The home section of a farm pack may be treated differently in law from the business sections. For the business sections a duty of disclosure generally applies. Tell the insurer about every activity carried out on the property.

Questions to ask before buying

  • Are sums insured based on current replacement costs for sheds, fencing and machinery?
  • Which perils apply to crops and livestock, and when must cover be in place?
  • Is flood included, and for which sections?
  • Are machinery breakdown and hired-in plant covered?
  • Does liability cover contract work, agistment and visitors?
  • Are unregistered farm vehicles and quad bikes covered?
  • Do I need workers compensation for seasonal or casual workers?
  • Is the adviser a broker or an insurer's agent, and how are they paid?

Where to complain

Complain to the insurer in writing first. If the issue is a broker's or agent's service, complain to them as well.

If that does not resolve it, the Australian Financial Complaints Authority (AFCA) is the free external complaints body. It accepts complaints from small businesses, including primary producers, with fewer than 100 employees. Its rules exclude some business covers, including public and products liability. Call 1800 931 678 to check. Workers compensation and CTP disputes go to the relevant state or territory scheme regulator.

Find a licensed broker

Browse businesses licensed to arrange general insurance in your city, or search every state.

Sources

Last checked: 2026-10-06

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