1 October 1999

Policy for loss thru disease

INSURANCE against loss of revenue because of disease restrictions is now available for cattle herds.

Cover from Lambert Fenchurch is available against TB, brucellosis and foot and mouth for both dairy and beef producers.

Speaking at the event, the companys Bill White explained that, for example, while MAFF compensation pays for replacement value of animals testing positive for TB, ongoing losses once restrictions are imposed can be considerable.

"This insurance will cover loss of revenue from stock sales or loss of any contract when herds are under restriction for up to a 12 month indemnity period."

Cost of insurance varies depending on risk, but Mr White estimated that a 100 cow herd in a TB hotspot would pay a premium amounting to 2% of revenue, while the same herd in a low risk area would pay only 0.5%.

"But costs can vary depending on whether producers want a lower indemnity period or are willing to pay an excess."