The face of farming in Manitoba, following national trends, is changing.
Commercial farms are growing larger. Smaller niche operators are emerging. Older farmers are downsizing. Younger farmers are growing.
As the sector evolves, so does its farm insurance needs. Farmers should be prepared to examine their insurance coverage as their needs change and ensure they’re covered for new risks.
“The farming industry is fast-paced and it’s constantly changing,” says Wendy Pasaluko-plas, a senior underwriter on the farm team at Intact Insurance. “Intact’s [products are] continuously changing and evolving to align with the needs of brokers and to provide the products that farmers require.”
Pasaluko-plas points out that these constant changes can have a huge influence on farm assets which can impact the values of equipment and farm outbuildings, livestock, crops, and technology. All these factors – and more – mean that insurance coverage needs to be reassessed on a regular basis if it’s going to keep pace with a farm’s needs.
“It’s an investment and farmers need to protect that investment and those assets,” she says. “They want to be covered in the event of any shortfalls or in the event of a loss.”
Partnerships between farmers, brokers and underwriters are key
An open line of communication between farmers and their brokers is so important, Pasaluko-plas says. The more information farmers provide, the better understanding the broker has of the level of risk. This allows the insurer to assess the coverage needs and provide customized quote options for the best possible coverage with the best possible terms.
“The more details and information farmers provide to their broker – and that the broker can then, in turn, provide to the insurance company – the better,” says Pasaluko-plas.
She notes that not all farms need the same level of coverage. A large commercial dairy farm, for instance, likely requires more coverage and more complex options than a small-scale vegetable producer.
Any farmer thinking of expanding their operation also needs to ensure they have the right coverage in place to protect their investment. Pasaluko-plas advises farmers to always include their broker in the conversation at the earliest planning stages of a major project. The more their broker knows about a project’s scope, the better they’ll be able to determine risk exposure. She uses upgrades to a dairy barn as an example.
“Are they adding stalls? Are they adding robotics? Is there going to be a new debris collection system installed? What are their future increases for livestock?” she says. “These are all going to impact the value of that structure. Advising your broker ahead of time allows them to provide for those upcoming changes, assess property values and help provide the proper coverage during the course of construction, but also what will be needed once it’s completed.”
According to Pasaluko-plas, a common mistake farmers make is to wait until renewal time to review their coverage with their broker, which can easily lead to something getting overlooked. Forgetting to add new equipment to a policy is common.
“There are also farmers who have had buildings or equipment on their policies for a number of years – and have been paying for the premiums – and then realize that they don’t have that piece of equipment or that livestock anymore,” Pasaluko-plas says. “Or they’ve changed their operation. At one time maybe they were heavily into cattle farming, and now they’ve changed into sheep herding. Sometimes they make those changes, but they forget to notify their broker.”
Choice and a range of options focused on agriculture
Intact Insurance offers comprehensive options for farms of all sizes and types. Its customer-oriented Risk Control team helps protect farms from unforeseen risks while its dedicated underwriting team, 24/7 claims service, and broad wordings and extensions address a wide range of modern farm exposures and mean that multi-faceted farms can often be placed entirely with Intact.
With a focus on agriculture, and like so many who work on Intact’s farm team, Pasaluko-plas comes from a long line of farmers.
“We have a high level of farm expertise within our underwriting team. The majority of our team have either lived on a farm, grown up on a farm, still live on a farm or have family that are farming. So, we are a very tight group,” says Pasaluko-plas, who has worked at Intact for 23 years. “I always say we’re like an extended family. We communicate well, make time for each other, and support each other consistently.”
Those farming backgrounds also mean they go that extra mile for their customers.
Case in point: Pasaluko-plas recalls driving to work one morning and hearing on a local radio station that a barn Intact insured was on fire. Because of the relationship with brokers and connection to the farming communities, she was aware of the broker and the farmer involved in the fire. Upon arrival at the office, she contacted the claims team to inquire if the loss had yet been reported. She knew that the broker would be part of the volunteer fire department attending the scene and wanted to ensure all hands were on deck to help. She later contacted him to talk about it as it was a heartbreaking loss for all involved.
To see specialized coverage for farm businesses, visit the Intact Insurance website
