Description

Protect farmers and processors against existential crisis from third-party claims for personal injury, damage to property or financial loss caused by culpable negligence (e.g. in livestock farming, use of agricultural machinery, contamination of food or water pollution).

In the initial stage of a professional liability insurance policy, the state can provide subsidies to reduce the burden on the farmer.

Requirements

• (Emerging) Insurance industry
• A properly functioning country-wide administration and monitoring system with access to the relevant information and sufficient technical and human capacities for its design, implementation and monitoring
• Close cooperation and knowledge sharing with farmers' organisations
• High proportion of the working population formally employed
• Open-access to all farms, regardless of size and location
• Skilled / specialised personnel to man the respective institutions / provide the respective services

Possible Negative Effects

• Insurance fraud
• Claims could be passed on along the value chain and down to vulnerable farmers