We all know how crucial it is to prevent incidents on farms, but we also know that unexpected events can still happen.
So, this Farm Safety Week we’re asking you to think about the ‘What ifs?’
What if you had a life-changing incident?
How would it affect both you and your family financially and how can you best protect your livelihood and your dependants?
We spoke to David Nottingham, Personal Finance Expert at NFU Mutual who suggested several simple steps farmers can take to do this.
David Nottingham, Personal Finance Expert, NFU Mutual
According to David, the first one is to think about is – unsurprisingly – life insurance.
It’s an unsettling fact that agriculture has one of the poorest safety records of any industry in the UK, but there are ways of protecting the financial future of your family and your farm.
Life insurance can provide a valuable safety net should the worst happen, so farm workers should check with their employers what benefits they already have in place.
Tragically though, 13 of the 22 workers killed on farms in 2021/22 were self-employed, leaving a devastating emotional impact on families that could also affect loved ones financially.
It’s important for self-employed farmers and contractors to consider protection what they have in place, because they will not have life insurance provided by anyone else.
It’s not just accidents that can affect farmers though. Like all members of the population, farmers can suffer from serious illnesses.
The good news is there are ways to provide you and your family with replacement income if you’re ill or injured for a lengthy period and unable to work.
While life insurance pays out in the event of death, income protection provides regular monthly payments if you’re unable to work through illness or injury.
Both can be vital tools to help protect the livelihoods of farmers.
It’s also important for farm business owners to have continuity plans in place. As any business owner knows, building and growing your own venture requires a huge amount of hard work and commitment.
Amid all the day-to-day demands of the business, it’s not always easy to find the time to step back and consider how best to safeguard it for the future.
Those that co-own businesses need to consider what would happen if your co-owner died or became seriously ill.
Partnership or Shareholder protection provides funds to help the continuing business owners buy a partner’s or shareholder’s share if that person dies or becomes seriously ill.
Key Person protection can provide a lump sum of cash to help a business survive in the event of death or illness of a key employee.
It’s not always easy discussing worst case scenarios, but it is crucial that every business – whatever the size – protects itself from unexpected events and reduces the financial impact on loved ones.
So, whatever your situation, it’s important to find the time and start thinking about how to protect yourself and your family.
