Farming, as an industry, brings its own set of challenges regardless of the sector and size of the farm.
From following regulatory rules enforced by the government to ensuring employees have the rights to which they are entitled, it’s a complex and demanding industry which can be difficult to navigate.
With farmers facing an ever-changing legal and regulatory landscape, having the right protection in place for their business has never been more important than it is now.
No-one can predict what the future will bring. But there is a dedicated legal expenses insurance policy designed specifically to protect farmers and landowners in the event of any mismanagement in the running of their business.
This specialist liability insurance aims to insure against any future legal costs when facing challenges from regulatory bodies, or any administrative, contract and legal issues which could potentially lead to large legal bills and associated costs.
It acts as a safeguard against unforeseen incidents that could otherwise significantly impact cash flow or business operations.
While your combined farm insurance policy covers your property, its contents and liabilities for employees and the public, legal expenses insurance cover provides peace of mind for intangible occurrences, such as legal matters, which can have serious consequences for your business if not handled correctly or prevented in the first place.
It also helps to ensure that business owners are not forced to settle disputes prematurely or accept unfair terms simply to avoid the financial burden of litigation. As the number of legal disputes increases, this added layer of protection is becoming increasingly relevant and sought after.
Legal support has become an essential component of modern farm management. As legislation evolves, having access to expert advice at short notice can be the difference between resolving an issue quickly and becoming embroiled in a lengthy, costly dispute.
With pressures mounting from all sides - economic, environmental, and political - farmers need every available tool to maintain stability and resilience.
Typical challenges covered by management liability insurance include:
• Tax issues covering all types of HMRC investigations including VAT disputes
• Regulatory investigations from bodies such as the Environment Agency and the Health & Safety Executive (HSE)
• Property-related issues including rent arbitration and issues arising with tenants
• Pursuit cover for debts or non-payments, or contracts that have not been fulfilled
• Family legal expenses including cover for the households of each insured business director or owner
• Employment disputes
• Compensation awards
• Fraud cover for accidental payments sent to a fraudster’s account
Legal expenses insurance can either be added to an existing farm policy as a basic cover or purchased as a stand-alone product which offers wider coverage and a higher level of indemnity. This flexibility makes it accessible to a broad range of farming businesses, regardless of size or structure.
Rural Protect is a stand-alone product which provides benefits such as access to legal and HR advice and representation and advice for investigations raised by all UK regulators, alongside covering legal costs, if required.
Most importantly, it provides you with the reassurance that you have comprehensive liability insurance in place to cover any allegations of wrongdoing directed at your business as a whole or its managers, directors, officers or employees, whether it operates as a limited company, in a partnership or as a sole trader.
Farmers typically work in an ever-changing environment and are at the mercy of not only the weather, but also industry rules and regulations, and sometimes even the best-run businesses can face unexpected challenges.
The cost of not having suitable legal cover in place can be significant and potentially crippling.
Speak to your insurance broker to find out how you can best protect yourself and your business through management liability insurance. By having the right insurance policies in place, you can ensure you have that peace of mind of knowing you’ve got it covered - whatever the future may hold.
With farming throwing up multiple challenges and obstacles to overcome, the less stress you are faced with can only be a good thing.