Farm fires cost industry up to £100m a year

Farm fires could be costing the UK agriculture industry up to £100m a year, according to insurance experts.

The estimate came as rural insurer NFU Mutual released figures showing it had paid out £44.7m in claims during 2014. The insurer covers about 75% of the total market on fire insurance.

See also: Farm fires: Planning a livestock evacuation

When potential payouts from the remaining 25% share of the market are included, the total number of settled claims would amount to £60m.

NFU Mutual’s rural affairs spokesman Tim Price said that these figures only covered settled claims.

“The total cost would be more than double the £44.7m total figure paid out by NFU Mutual if you included an estimate for farms which had no insurance cover,” Mr Price said.

“Further costs arise long after a serious fire has taken place and much of the risk to the business’ viability is at this time,” he said.

These costs can be in lost income when buildings are put out of action, lost throughput of livestock after restocking or increased labour if the farm is running less efficiently, he added.

In an attempt to minimise the financial impact on farming, Mr Price said that NFU Mutual was focusing on fire prevention.

“The scale of claims shows how important it is to take all possible steps to prevent fires breaking out,” said Mr Price.

He added that the insurer was forging closer links with fire and rescue service across the UK to provide better advice on how to reduce fire risks.

“It is worth noting that the fire and rescue service is often unable to tackle a blaze for their own safety because they don’t know what is in a building,” Mr Price said.

Sheds and barns are frequently used to store straw along with livestock, machinery and a range of flammable products.

Keeping an inventory can help but if these items are separated there is a greater chance of reducing the impact of a fire on a farm business, Mr Price advised.

According to NFU Mutual figures, the most common cause of farm fires was electrical faults, which were responsible for over a third of all 2014 fire claims.

Arson and mechanical faults were the next most common causes.

Farm fire prevention checklist

• Store and maintain sufficient fire extinguishers for the size of buildings and materials stored
• Ensure staff and adult family members are trained to use fire extinguishers
• Reduce arson by fencing off straw stacks, and farm buildings
• Store hay and straw at least 10m from other buildings
• Put in place an evacuation plan for staff and livestock
• Store petrol, diesel and other fuels in secure areas
• Schedule regular electrical safety checks
• Invite your local fire and rescue service to visit to check water supplies and access routes

Source: NFU Mutual