In the agricultural sector, you work extensively with machinery, animals, people, and products. So you know: accidents can happen. Whether it's a stray animal causing damage to a neighbor, an employee injured on the job, or a mistake with pesticides, the financial consequences can be significant.
That is why a good AVB insurance Essential for agricultural businesses. It protects your business against external damage claims. Whether it's damage to someone else's property, injury to third parties, or environmental damage, with the right coverage, you don't have to worry.
What is covered by agricultural liability insurance?
With business liability insurance, you're usually covered for damage for which you, as a business owner, are liable. This includes damage caused during work, by an employee, by a product you supply, or by animals on your property. Environmental damage is also covered, for example, if manure accidentally spills into surface water. However, this must involve sudden damage and not something that has been developing for a longer period. Employees are also covered, whether they are permanent employees or occasionally volunteer. Even friends or family who lend a hand are covered as long as they are working for the company at the time. Note that damage to motor vehicles is usually not covered by this insurance. You'll need separate motor vehicle insurance for that. There are exceptions, for example, if an employee causes damage with a non-company vehicle.
What should you pay attention to as an agricultural entrepreneur?
Not everything is covered by default, so it's wise to carefully check what is and isn't covered. For example, if you work with pesticides, there's often an additional deductible in case of damage. If you operate your products outside Europe, for example, in exports, coverage is often limited or even excluded. Damage to items you rent or borrow, such as machinery or transport equipment, isn't automatically covered either. These are usually excluded from the insurance unless special arrangements have been made. Furthermore, your company must be established in the Netherlands to be eligible for this insurance.
Damage? This is what you need to do.
If you experience damage or are held liable, it's important to report this to your insurer as soon as possible. If you wait too long, the claim may no longer be processed. Also, make sure you have as much information as possible, such as what exactly happened, who was involved, and whether there was any damage to property or people. Keep damaged items safe, as they can be important for the investigation. To find out if your situation is covered, it's best to inquire directly with your insurer. They will assess your insurance and how the claim will be handled.
When are you not insured?
There are situations in which damages are not compensated. For example, if you deliberately do something that is not allowed, or if you work in violation of the occupational health and safety or environmental regulationsDamage caused by sexual harassment, reckless behavior, or fraud is also excluded. Furthermore, damage caused by natural disasters, nuclear reactions, or war is not covered. In some cases, another insurance company may have to pay out before the AVB will supplement anything. Therefore, always be honest when submitting an application or claim. If the insurer discovers that something has been concealed or misrepresented, this can have serious consequences.
The role of legal aid and additional modules
Sometimes you're faced not only with damages but also with legal disputes. For example, an employee holds you liable after a traffic accident during working hours, or a dispute with a supplier. In that case, a supplementary legal assistance module can offer a solution. This legal assistance is arranged by a specialized agency, and the costs are usually reimbursed, as long as it falls within the agreed-upon terms. You can also choose to take out additional insurance for employer liability in traffic or for legal assistance in recovering damages.
Take advantage of the rising economy
So, you'd be wise to take out employment insurance in the agricultural sector. Unfortunately, there's a downside: the cost. Fortunately, the Dutch economy grew By almost half a percent in the third quarter compared to the previous quarter. With this rising income, you might be able to afford the insurance. Even if that's not the case, it's still wise to take out a policy.