Small producers say they are facing insurance hurdles

That's the advice from Tooboorac pastured pig producers Belinda and Jason Hagan, McIvor Farm Foods, who tried to get insurance coverage for three working dogs they had bought for their operation.

Although McIvor Farm Foods has insurance, specifically tailored to the operation, Ms Hagan said the company that provided it turned down a request to cover the dogs.

"We would have just thought that livestock included working dogs," she said.

"Each category we insure with them has a different excess, so you would think there would have been a higher excess and premium, because an accident can happen and you can lose a dog.

"You certainly have to read the fine print."

She said working dogs were not cheap, often costing more than $10,000 for one that was trained.

"If something happens and you need to replace them with a fully-trained dog, you are looking at a fairly big investment," she said.

She said it seemed odd the company, which she opted not to name, specifically covered farming businesses but didn't insure working dogs.

"We could probably get [the dogs] insured as pets; there's plenty of pet insurance options," she said.

She said the company didn't give reasons for not insuring the dogs.

Bakers Anthony and Amanda Kumnick, Great Western Granary, Great Western, were also met with difficulties when trying to extend their cover through their insurer QBE.

"I got in touch and said our business is insured through you, what about a house and contents policy too?" Mr Kumnick said.

"They haven't got a product that fits this scenario, so they say they can't deal with it."

He said the bakery was in a fully-detached building, apart from the house.

"But the response was that it's on the same property," he said.

"I asked them what happens if you live next door to a bakery, if it catches fire next to you.

"Like COVID, fire doesn't discriminate, it knows no boundaries."

He said he had managed to get home and contents insurance, but only at a significantly higher price than expected.

"The one company that will insure us is charging $2500, while regular home and contents insurance is about $1300," he said.

Australian Food Sovereignty Alliance president Tammi Jonas said some small-scale artisanal farmers and producers had also experienced difficulties in getting the right cover.

A pastured-pig producer, Ms Jonas said she and husband Stuart, Jonai Farms, Eganstown, found it a struggle.

"Pigs, to insurance companies, mean animals in sheds, but we don't have those sorts of pigs," she said.

"But [insurance companies] want to treat us all the same.

"For the companies, it's all intensive, industrial pig farming, and none of our members do that."

The Jonas' also have a boning room on their property and are building a micro-abattoir.

"Insurance companies don't like refrigeration either, because it breaks easily," she said.

An Insurance Council of Australia spokesperson said when a customer purchased or renewed a home and contents policy, a range of questions were asked to get relevant information.

That included whether any business or commercial activity would be conducted at the property.

"It is important questions are answered accurately and truthfully, no matter how large or small or the type of business activity, inaccuracies or omissions may put the cover and future claims at risk," the spokesperson said.

"Specific insurance products are available for people who operate a business from home."

These products could cover home building, home contents and the business.

"There are likely more people now operating a business from home because of the COVID pandemic, so it is a timely reminder people should review their insurance cover to ensure they have adequate and appropriate cover for their personal situation."

QBE has been contacted for comment.