Article taken from the agricultural magazine La Terre de chez nous, October 31, 2017 edition.
1. Develop Trust
The key is for the producers to feel considered, for the insurance broker to be aware of their needs and to act as a good business partner. "When I meet with a producer, I conduct a thorough evaluation with him to help him make an informed decision and anticipate all the unforeseen circumstances," says Benoit Robillard, account manager for commercial insurance at Lussier.
2. Take Inventory
Although a tedious and time-consuming task, it is important to take an inventory of the farm's products and equipment so that you can be aware of subsequent additions. Updates will then be necessary as the value of the equipment can fluctuate greatly over time.
3. Think Ahead
Several questions need to be asked in order to better plan for the future of one's business and to choose the appropriate insurance policy. How much money could be invested if it is necessary to rebuild? Will the insurance pay for the replacement of equipment in the event of a loss? Will there be a backup?
4. Understanding Replacement Insurance
The objective is to replace the declared asset with its equivalent based on its value at the time of the loss. Following the loss, the producer may want to modernize his equipment. They will have to invest if they want new, state-of-the-art machinery," Robillard says.
5. Anticipate the Settlement Payment
In the weeks following the investigation, the insurer can release funds quickly to help the producer pay some of the costs and avoid dipping into their working captial.