For some farmers and small business owners, business insurance is just another cost — a cost that rarely brings a financial return.
Some even view insurance premiums as a bet something bad will happen.
A recent Farm Credit Canada article describes insurance as an investment in managing risk of disaster. Weather-related insurance claims across Canada amount to $1 billion plus a year compared with $400 million in 2008.
Producers are encouraged to plan for disaster, identify possible risks, and insure accordingly.
If cash flow dries up from burning of a dairy barn, loss of a combine in harvest or loss of stored grains, or loss of stored hay, what will you do?
Insurance, say some farm advisers, is like a will. Insurance reflects your will, if things go bad and it needs updating every year to show changes in operations and values.
COVID-19 may have opened some eyes to the need for business interruption insurance policies that cover ongoing costs and the cost of re-building.
As one adviser put it: fifty per cent of businesses never re-open after a major loss because there isn't enough business interruption insurance.
Ron Walter can be reached at [email protected]
