New insurance cover to protect farmers from machinery loss
17 SEP 2019
New Insurance cover to protect farmers from machinery loss
A new insurance product has been unveiled which protects farmers whose machinery has been written off or stolen.
Rural insurance broker Lycetts has launched the guaranteed asset protection insurance (GAP) product specifically designed for agricultural machinery.
In the event of a total loss, GAP will help the farmer recover the agreed value rather than the market value usually offered by insurers.
Whilst widely offered for private vehicles, such as cars and vans, GAP is limited in the agricultural machinery sector.
Andrew Hay, farm expert for Lycetts, said that farmers face 'increasing uncertainty' over income, especially as farm support payments reduce.
He said: “At a time when they are already feeling the pinch due to low commodity prices, farmers are having to contend with a significant increase in the cost of machinery which in part has been fuelled by the devaluation of sterling.