Farm Insurance and Contamination of Milk
Making sure that your milk is adequately insured is of prime importance for Dairy Farmers. Imagine the following scenario.
Your herd is milked and your storage tank is filled. The truck picks up the milk for delivery to the Creamery. Suppose that one of your cows is being treated with anti-biotics and her “do not milk” sign has fallen off and she is milked. This problem could be made worse by the Creamery that accidently mixes your milk with all the other farmer’s milk. You could be held financially responsible for not only your milk but all the milk that was collected by the Creamery. Milk Contamination Insurance will cover you for the cost of your milk as well as the milk lost by the other, affected farmers.
Loss or deterioration of your milk, while in storage in your bulk storage tank, following failure of your tank is covered. The failure of your tank can be caused by anything, once it is not deliberate, such as loss of electricity supply, or due to a breakdown of your thermostat.
Your farm insurance policy will also provide cover for loss of your milk which has been rejected by the Co-Op because it has been contaminated. Contamination of your milk by other farmers or by anti-biotics is also automatically covered under your Farm Policy.
Loss of milk cover for thermostatic failure or antibiotic contamination is a very valuable cover to have. Standard limits of up to €1,500 are available. However, we can negotiate increases in cover to €3,000 or even €5,000. We know that many dairy farmers have larger holding tanks and a €1,500 limit may simply not be enough.
All farm insurance policies have a condition where you must have a contract with engineers to inspect and maintain your refrigerated bulk milk storage tank every six months.
You can also insure your Bulk Milk Storage Tank for All Risks cover and this includes electrical and mechanical breakdown.