FARM PROTECTION STORIES

When was the last time you reviewed your livestock values?

The strong market demand for livestock over the past few years means that livestock values have also increased and in 2025 we are now seeing record highs for beef in livestock marts and factories. While this outlook is largely positive for farmers, it’s important to remember that as livestock values rise, so will the cost of replacing animals in the event of any loss.

With these changes taking place, it’s crucial for farmers to regularly review their existing declared sum insured for their herd and ensure they have the level of protection to match their circumstances.

To assess this accurately, there are some factors to think about below;

What will the maximum herd value be over the next 12 months?
Have you considered the age of livestock over that period?
Will any additional animals be purchased?

The risk of underinsurance

FBD cannot understate the importance of reviewing the above, as not having the accurate level of protection can result in your livestock being underinsured. Where the livestock herd is underinsured, the Condition of Average may apply in the event of a loss and the value of any claim will be reduced based on the percentage of underinsurance. This means that the settlement from a claim may fall short of the amount needed to replace the animals if the sums insured, at the time of any loss or damage, are less than the market value, leaving the farmer financially exposed.

Example

A farmer purchases 50 store cattle in February and insures them for the purchase price of €40k. During the spring and summer, the hope is the cattle will thrive, and this will increase the value.

In September, 20 of the cattle are killed during transit. At this time, the estimated market value of the herd was €60k making the value of the cattle €24k. However, as the animals are underinsured, the insurer would only cover 67% of the claim made so the farmer will only receive 67% of the claim amount (€16,000).

Claim Settlement:

Sum Insured €40,000
Market Value €60,000

Claim Value €24,000

=€16,000 (Claim Payout)

=€8,000 (Uninsured Loss)

This would mean that €8,000 of the loss is not funded and the farmer is left out of pocket for this.

With livestock values continually rising, FBD Insurance is advising farmers to ACT NOW!
Insuring livestock for incorrect values or setting cover limits too low will result in underinsurance. Contact your insurer today to make sure you are not underinsured. Don’t wait until you need to make a claim!

If you have any questions about the cover on your livestock, talk to the team in your local FBD branch today or click here to arrange a call back or a farm visit with one of our team.