Page 10 - Hooked on Herefords October 2019

Insurance Industry Update

AonAgri, New Zealand’s leading rural insurance brokers.

Insurance is changing and new risks to the industry and to trailer thefts are on the increase. An Aon client recently had his
farmers are emerging. Along with traditional fire and flood ute parked at a livestock sale and his trailer was stolen whilst
insurance claims, we are now seeing new and serious claims for attached to his vehicle. Insurers advise to take keys out of
risks such as Cyber and Statutory Liability. vehicles at night, and lock your house when you are on the farm.
We’ve spoken to two of the leading rural insurers in New Zealand
and compiled a top 5 rural insurance risks for you to consider CYBER CRIME:
next time you are looking at your farm insurance. The most common cyber risks to affect the rural sector are
Network Breach (hacking of information) and general disruption.
STATUTORY LIABILITY Below are two scenarios.
The Health and Safety at Work Act and the Resource Management
Act are the two main reasons you need to ensure you have Network Security -Hacking of Files/Information
Statutory liability insurance and adequate sum insureds. A third party manipulates information collected on mobile
By law, insurers cannot cover a Health and Safety fine however applications arising from a cyber-event which affects the way
they can cover legal defence and any reparations the court your farm manages its stock or crops. This could lead to a loss
awards. Insurers can cover both legal defence and fines under of revenue if a failure of the network security occurred.
breaches of the Resource Management Act.
Social Engineering - Impersonation Fraud
BUSINESS INTERRUPTION: A third party impersonates/pretends to be your supplier which
The financial impact caused by a loss to a dairy or wool shed are prompts you to pay their invoice in good faith (but to the hackers
the main areas of concern. Business Interruption is especially bank account). The prompt to pay the invoice is generally
important if you have high debt levels. because you were expecting an invoice from them – in such
For example, if you can’t milk for a sustained period of time due a scenario, a hacker will have intercepted the communication
to a shed loss, you may have to dry the cows off early which between you and your supplier.
would result in a serious loss of profit. You may have to move the
herd to another farm and pay grazing and milking costs which How can Aon help?
could be considerable. Sheep farms also have an exposure. Aon we have 76 branches around New Zealand from Keri Keri to
If your shearing shed has a loss you may have to temporarily Invercargil with rural brokers who specialise in farm insurance to
convert another shed for shearing or incur additional costs to help you navigate your way through farming specific insurance
transport sheep to a neighbouring farm and pay hireage costs risks as mentioned above.
for use of their facilities. If you would like some advice
please call 0800 266 276 to
UNDERINSURANCE: talk to your local broker.
With rising building and compliance costs, the cost to rebuild
farm sheds have increased significantly. If your farm sheds are
insured for full replacement you shouldn’t have an underinsurance
issue (so long as they have been measured correctly), however
if your farm buildings are insured to a dollar value then you need
REMINDER!
to be aware and review these sums insureds.
Aon have a highly qualified valuation team who can provide a
valuation for insurance purposes at a very competitive rate. NZ HEREFORD MAGAZINE
Recently an Aon broker met with a client and recommended Cut-off date is just around the corner for the upcoming
they increase the sum insured of their stable to $35,000 from magazine! This edition coincides with the World
$15,000. The client elected to keep the sum insured at $15,000. Hereford Conference and is an advertising opportunity
The stable subsequently burnt down with a claim payout of not to be missed!
$15,000, leaving a $20,000 shortfall to rebuild the building.
Early Bird bookings cut off: 18th October 2019 5pm
FARM THEFTS: Bookings cut off: 25th October 2019 5pm
The days of leaving the house wide open and leaving keys in Content cut off: Monday 11th November 2019 5pm
vehicles are diminishing, even in rural areas. Quad bike and Contact: kirsty@herefords.co.nz

10 NZ HEREFORD ASSOCIATION NEWSLETTER