Bird flu insurance offered again for poultry farmers

Insurance underwriters are offering cover again for avian influenza (AI), having temporarily withdrawn from the market in the immediate wake of the Lancashire outbreak in July.

Initially, insurers pulled their cover, as they were unsure of the likely cost of cleaning up following an outbreak.

But, having had time to assess the situation, two underwriters are now offering cover again.

Broker Scrutton Bland, which has an arrangement with the British Free Range Egg Producers’ Association (BFREPA), is now quoting stand-alone cover for secondary cleansing and disinfection (C&D) at £250 for up to £100,000, and £500 for up to £200,000.

See also: Bird flu clean-up aided by industry fund

Non-BFREPA members can get the cover too, said the company’s Ed Nottingham, but they would have to take out a general AI policy first, at 3p to 3.5p a bird.

Mr Nottingham said there was renewed interest from poultry farmers, though many were looking for even higher cover for secondary C&D.

Broker Thompson and Richardson said it too was offering secondary C&D at the same rates, and had also just introduced cover for consequential loss, available to farmers in a 10km restriction zone around an infected premises.

This would provide £10,000 for a premium of £150, said the company’s Joel Vincent. “If, for example, you can’t move eggs because you are close to an outbreak, or can’t move broilers, then this can cover the lost income.”

Standard cover, for both AI and salmonella, is put at about 10p to 12p a bird for free-range set-ups, said Mr Joel, and will “ensure the books look the same after an outbreak as before an outbreak”.

Meanwhile, insurance has emerged as the preferred method of funding future clean-up operations, rather than setting a levy on day-old chicks to create an industry fund.

A meeting of the Poultry Health and Welfare Group funding sub-committee was held on 10 September and all options were put on the table.

“So far we have not dismissed anything and there will be further meetings,” said British Egg Industry Council chief executive Mark Williams. “But encouraging more insurers to come to market is the most favoured option.”

The NFU Mutual says it is still working up a policy and hopes to share details soon.