Santam provides some insights
Farming today differs significantly from a few years ago. The 4th Industrial Revolution, together with the Internet-of-things (IoT) have introduced major technological advancements to precision farming.
More recently, Artificial Intelligence (AI) developments have enabled today’s farmer to use electronic equipment and related data sets to automate various farming processes. Through the collection and processing of data, AI is assisitng the farmer with automated decisionmaking, becoming the new norm within agriculture. We can no longer ignore these benefits towards precision farming and a special focus towards the insurance of these advanced pieces of equipment has become inevitable.
Emil Pretorius, Santam Business Development Manager, explains the cover for electronic equipment, and the new enhancements forming part of the Electronic Equipment section on the Agriculture policy. These enhancements are aligned with the new agricultural practices now being part of a farmer’s business.
“Providing specialist risk solutions for electronic equipment over a number of year’s means that we have developed a detailed understanding on insuring these items” says Emil.
These pieces of electronic equipment are much riskier than other farm assets, resulting in. physical loss or damage due to lighting, power surge, electrical, mechanical or electronic breakdown and theft of these items.
Santam Agriculture recently revised the Electronic Equipment section of policies and added some enhancements,” says Emil.
What is the main enhancements on the Electronic Equipment section?
Emil explains that special attention was given to enhance cover. The policy wording provides cover for loss of or damage to the property insured from any cause not otherwise excluded.
Electronic equipment will be covered whilst at work, at rest, dismantled for cleaning, inspection or overhaul within that part of the building or temporarily removed to any other building. Cover include in transit or temporarily stored at any premises en route. An example for the Livestock farmer will be Precision Livestock Farming (PLF) equipment used for the continuous monitoring of animals. The data collected towards animal health, fertility, production etcetera are being used for the management of livestock. The electronic equipment, together with the software, needs to be insured under this section.
Emil explains that cover for insured property like a laptop, tablet or other similar portable electronic equipment designed to be carried by a person will now be covered anywhere in the world, including cover for theft or burglary. As part of data collection crop farmers are increasingly making use of drones and cameras to measure the maximum potential yield, soil nutrition and impact of weather and rainfall results, all with optimal benefits to the farmer. The camera and software needs to be insured under this section. The drone needs to be insured with Santam Aviation to provide for liability cover.
Another enhancement is cover for insured property of a specialist nature. Items such as GPS navigation systems, control systems, sensors, telematics and automation equipment will enjoy cover at or away from the insured premises, whilst at work or rest or at least in any location (other than a building) or vehicle. An example will be the AMS devices (Auto Pilot) for tractors or combines. Crop farmer’s often use various electronic instruments like soil nutrient testers or sensors for the measurement of soil nutritional levels.
Emil explains that insured items will also enjoy cover while at the premises of any supplier or repairer for the purpose of cleaning and repairs.
Our business partners needs to take note that the sub-section Consequential loss has been extended with optional cover for business interruption. This is important cover towards the loss of profit following the damage or loss of an insured item.
Emil says that we can no longer ignore the importance of the optional cover for the loss of data. Reinstatement of data is available under this section.
Although investment in these technologies come at a high cost, the contribution towards the farmer’s success is significant. It is therefore important for the farmer and broker to attend to the insurance of these items to ensure for the long-term sustainability of the farm.
Santam is committed to assisit farmers in their insurance needs related to smart farming.