Farmers, landowners and estate managers know that running a rural business comes with plenty of unique risks and a large amount of maintenance. Although you'll try your best to make sure that everything runs smoothly, things can happen that are beyond your control. There might be a freak flood that damages your barn, or vandals might destroy fences on your land.

Rather than hoping that nothing bad will happen, it's better to prepare for the worst. You can do this by making sure that you have the appropriate insurance for your land and have the necessary cover to help with legal fees should you face compensation claims or to cover damage costs.

Whilst it's a privilege to have your own land, it also comes with lots of responsibility and specific perils. With this in mind, it's wise to make sure that there are safety precautions and security checks in place as well as regular maintenance and inspections of your land to help manage your risk level and comply with health and safety obligations. Land and Estate insurance is another safety net that will protect you and your rural business in the worst-case scenario.

This guide will explain why Land and Estate insurance is a viable option to protect you financially against unexpected events and their consequences. This includes damage caused by nature, injury to third parties and stolen property.

Do I need Land and Estate insurance?

Land and Estate insurance is not a legal requirement, although many people see it as an essential part of land ownership. The insurance offers protection against unexpected disasters or incidents such as fire, storm, flood and theft that would otherwise result in a significant financial cost for you as the landowner.

One important reason that Land and Estate insurance is recommended for landowners is that they are responsible for any and all events that occur on their property. This includes events involving employees, visitors or even trespassers. If someone were to be injured or their property damaged on your land, you could be liable for compensation. This means that you need to consider insurance to protect you, your business and your employees.

There is a whole range of possible instances where something could go wrong. Although there's no way you can fully prepare for or prevent the worst from happening, getting insurance gives you the best support and protection to help ease the burden of financial demands.

What is Land and Estate insurance?

Land and Estate insurance is a broad policy that covers many potential risks that may occur on an estate or private land. This rural insurance can be used for a variety of land types, such as farms and large estates.

Here's an example: Land and Estate insurance will protect you and provide cover for buildings, machinery and other farm property such as agricultural produce. You can be covered against risks such as fire, storms, vandalism, floods and even falling trees.

It can be very expensive to replace equipment or pay for repairs when something happens on your land, which is why you are covered for most eventualities. You can claim on your insurance if someone commits arson on your land, as well as for damage caused by accidental fires and destruction caused by lightning.

The insurance should include Public Liability as default, and other options such as Products Liability, Employers Liability and Environmental Liability. These protect you if claims are made by employees, members of the public or if personal property is damaged somehow.

Public Liability

This covers you against claims made by members of the public concerning injury to third parties or damage to their property. You can be sued if this occurs on your land, which is why Public Liability insurance can help you with the expense of defending yourself or paying out if you are found liable.

Employer's Liability

This is similar to public liability insurance in the sense that it will cover you against compensation claims made by an employee. If a worker is injured on your land whilst working for you, they may file a claim that your insurance will help cover.

If you have employees working on your land, then Employer's Liability insurance is something you must have by law.

Environmental Liability

Despite the fact that the farming industry is heavily scrutinised and regulated, and most farmers work hard to ensure environmentally friendly practices, accidental pollution and environmental damage can still happen. This is where Environmental Liability comes into play.

This is an unusual policy that not many insurance companies offer, but it can be useful depending on the work or activities carried out on your land. If you use pesticides or any other chemicals in the day to day running of your land or estate then it's a good idea to make sure that your insurance policy covers you for any damage caused to the environment.

There are also other liabilities to consider. For example, if you are contract farming (meaning farming for someone else) then you should check that your insurance policy covers this work.

Why do I need Land and Estate Insurance?

You're liable if something goes wrong on your land, such as injuries to third parties or damage to their property. A compensation claim can be very pricey, even if nothing comes of it. The legal fees for the defence alone can make a sizable dent in your wallet.

By getting Land and Estate insurance, you can protect your land against unexpected expenses and claims. This insurance policy can also protect your income in case of catastrophes such as floods, fire and storm damage.

Even if someone doesn't have permission to be on your land, you could be liable for legal claims if they hurt themselves, so it makes sense to have insurance. Trespassing isn't a criminal offence, and if anyone is on your land gets injured, they can sue you, even though they shouldn't have been there in the first place. This means that you can be forced to pay compensation, even if you weren't aware that someone else was on your property.

The only way that you will be able to escape paying penalties or fees is you can prove that you weren't negligent. If you don't have this evidence, you could be found liable and will be forced to pay potentially tens of thousands of pounds. If you are already insured, these fees will be covered if they fall within the policy guidelines.

What is covered by Land and Estate insurance?

Land and Estate insurance covers a variety of property types. This includes fields, woodland and private car parks. Derelict buildings are perhaps one of the most important things to insure because they often attract trespassers and criminal behaviour.

Land with water, such as rivers and ponds is also protected, as are private roads. When applying for insurance, you will need to state the various features of your land. For example, you would need to say how many fences there are on your land, what kind of barns or buildings are on the property and what livestock you have.

Your policy will also include the following features:

Home

This covers any accidents or damage that occurs within your farmhouse. This is only valid if your house is on the land that is listed on your insurance.

Valuables

You can also insure any valuable items on your land in case they get damaged or stolen through no fault of your own. However, your insurance may be invalid if you don't take the proper safety precautions to protect your items.

Livestock

You can insure animals on your land in case they get injured, lost or stolen. You will be financially compensated to replace them should anything happen. You can also get cover against sheep, cattle or poultry worrying by dogs, as well as cover for your livestock against certain diseases and even infertility.

Hired-in plant

In instances that you hire machinery or tools, it's a good idea to make sure that you are financially protected in case they get damaged and you need to pay for their replacement or repair.

Property in transit liabilities

The goods and products that you transport are at risk of a number of perils. Insuring these goods can save you from heartache should they become damaged or lost. It can also be reassuring for the parties receiving the products if they know that they will be compensated for delays or goods that don't arrive.

What claims does Land and Estate insurance cover?

The most typical claim that Land and Estate insurance covers is against simple trips and falls of people on your land. For example, there may be an uneven piece of ground that someone trips over and hurts their ankle.

Bad weather increases the chance of damage, such as a tree falling in high winds. The tree could damage your property or someone else's, or even injure someone. Alternatively, the tree may fall on a neighbour's property and you have to pay for the removal and any damage caused.

Badly maintained private roads may have potholes that can damage vehicles if they drive over them. Someone can put in a claim against you if they have to take their vehicle to get repaired after an encounter with a pothole.

Many companies offer to take cases on a 'no-win, no-fee' basis which encourages people to make claims as they don't lose money even if the case doesn't go in their favour. However, this still makes trouble for landowners because they will have to defend their case and will be forced to pay out money either way.

Does vacant land need insurance?

Vacant land has no form of structure, such as a farm building, barn or shed, on it. This includes land such as meadows, forests or shared access lanes. You should still insure your land, even if it doesn't have any buildings on it because there is still a chance that people may become injured onsite or property will get damaged.

Can I have Commercial Legal Expenses as an add-on?

Many people ask about additional policies that they want to be included with their Land and Estate insurance. Unfortunately, Commercial Legal Expenses cannot be included as an add-on because it is a separate policy.

Commercial Legal Expenses cover is a policy that provides the legal costs to rural businesses if you are pursuing a compensation claim or dispute against another party. It will cover the cost of settling issues, such as a dispute over a contract. It will also cover fees should an issue arise about a public right of way or any tax investigations.

How much does Land and Estate insurance cost?

The cost of Land and Estate insurance will vary depending on the size of your land, the type of land and where it is located. For example, a few acres will cost a lot less to insure than several fields that contain multiple farm buildings and machinery.

Simply put, the cost of insurance is higher if there is a higher risk factor. For example, you may have had trouble in the past with criminal damage, your property might be prone to flooding or you might be based in a built-up area with lots of people passing by. On the other hand, remote locations can decrease the cost of your insurance if there are fewer threats.

Multiple parties can insure the same piece of land if it is communally owned. You simply need to ask for your Land insurance to be adapted to cover this feature.

For the best deal on Land and Estate insurance, you can speak with a broker. An insurance broker can arrange for the best cover that is tailored for your individual needs. They will be able to help you with research, price comparisons and any other concerns you may have.