Thursday, 30 September 2021 13:14

Livestock insurance will protect your farm investment from floods or other adversities

Written by Evelyn Alas

Climate change has put El Salvador's agricultural sector in check. Crops and livestock lost due to floods or dry fields due to lack of rain are the recurring problems that hit thousands of producers who in recent years have reported millions of dollars in losses.

Data from the Federación de Hortalizas y Frutas de El Salvador indicate that, in the first seven days of November 2020, storm Eta affected crops and structures to the tune of US$6 million.

For this reason, having a policy that covers the investment could reduce these impacts.

Thus, in the face of these climatic risks and other accidental situations, it is necessary to take actions that protect the effort and investment made by farmers, in order to reduce losses, which not only affect the owner, but also many families linked to the production process.

Eduardo Barrientos, general manager of Unity Willis Towers Watson, believes that agricultural or livestock insurance protects the investment in extreme cases that could bankrupt the business. "The payment of the policy is a controlled and manageable expense, which allows a healthy financial management and gives stability to the business in the long term", he said.

Therefore, Unity Willis Towers offers the public insurance that adapts to the needs of the agricultural sector.

Agricultural insurance

Agricultural insurance protects against the actual loss suffered as a result of direct physical damage to the crop, provided it is on an insured property, is caused by an expected risk, occurs during the period of coverage and under the conditions established in the policy.

Livestock insurance

Basically, livestock insurance is a very effective instrument that allows farmers to manage the risks to which their livestock are exposed. In the event of a foreseen loss, it allows them to recover their capital, achieving greater economic stability and even supporting their credit solvency.

This insurance only covers animals against the risk of death caused by specific and express causes, such as accidents, diseases and forced or sanitary slaughter.

The sum insured per animal is called "salvage" and depends on the value agreed between the insured and the insurance company, determined according to age, breed, sex, zootechnical function, purchase-sale invoice or appraisal made by an expert in the field. This unit value is added depending on the number of heads insured.

In case of loss, the pertinent investigations are carried out in order to document what happened and to be able to provide coverage according to the policy contracted.

Both agricultural and livestock policies have very specific variations for each case, to choose the one that provides the appropriate coverage for your company you can go to the team of experts at Unity Willis Watson El Salvador, who will help you evaluate the different market options.

For more information you can visit the web page www.unitysetessa.com