This post was originally written for one of our amazing broker partners McFarlan Rowlands Insurance Brokers.
What is a risk?
A risk is the potential of something going wrong and results in a loss that was not planned. A loss is expensive to recover from and is the main reason why people and businesses rely on insurance. Your insurance company protects you against the risk of uncertainty and the possibility of something going wrong. Managing risk on your farm operation is a major part of keeping you protected.
Some risks an insurance policy will protect you from:
- fire
- lightning
- flood
- pipe rupture
- vandalism
- theft
There is a variety of risks and hazards that everyone faces in both our personal and business lives, but proper education and management can help minimize risk and create a safer environment for everyone.
Making a Personalized Risk Management Plan
With the growth of individual farms over the past decade, the chance of something going wrong is higher than it has been in the past. As a farm owner, you face many different risks around your operation. A risk management plan can help identify what could go wrong and prepare you in how to manage it. For example, identifying an issue with an electrical panel at an early stage may impose a cost to have it repaired, but this cost is minor compared to the possible devastation it could cause if ignored.
While you cannot plan for every different scenario, a well-rounded risk management plan can help not only save you money and resources, but also increase your ability to react if something does go wrong.
We’re here to help.
There are many different ways to help reduce hazards, while managing risk on the farm, but the easiest is to check a variety of items while walking around and completing daily chores. Another option is to have a trained professional visit your farm to help provide advice and recommendations. Trillium Mutual has a team of trained risk inspectors that work with our broker partners, like McFarlan Rowlands, to help protect your livelihood, your family, and your assets. If you’d like to meet with a risk inspector, please speak to your Broker! Please use the list below as a guide and starting point in making your personalized risk management plan.
On a daily basis you should:
- Maintain adequate clearance around electrical panels
- Inspect fences and secure sliding doors when open or closed
- Test your sump pump (can be tested monthly)
- Keep fuel oil tanks clear of any debris or clutter and protect from impact
- Make sure all chemicals are stored and labelled properly
On an annual basis you should:
- Inspect your electrical and mechanical systems using thermal imaging technology
- Install a fire detection/suppression systems in utility rooms
- Inspect and clean wood burning appliances
- Avoid the use of extension cords and hardwire where possible
- Eliminate temporary heaters with permanent appliances installed by a qualified contractor
This overview of items to check in and around your farm will get you thinking about your own risk management plan and practices. There are many other items that should be checked on a daily basis and you can find a more comprehensive list here on our website.
