The general insurance, oil and gas, and agriculture industries have confirmed that general insurance policies for farm risk continue to remain available, through various insurers, to farmers who host natural gas activities.
This was announced in a joint statement by the Insurance Council of Australia (ICA), the Australian Petroleum Production & Exploration Association (APPEA), National Farmers Federation (NFF), Queensland Farmers’ Federation (QFF), AgForce, and Cotton Australia.
Every farmer’s situation is different, so it is appropriate for individuals to discuss with their insurance brokers their circumstances regarding liability insurance cover. However, public liability insurance offered to farmers is designed and priced to cover farm risk only, and therefore may not cover losses associated with third party infrastructure including infrastructure and activities associated with natural gas production.
The ICA, APPEA, NFF, QFF, AgForce, and Cotton Australia are working together with the shared objectives of ensuring there is a common understanding, and providing assurance to farmers who host gas activities that they are, and will continue to be, appropriately protected against loss.
Farmers who host natural gas activities are protected by indemnities offered by gas companies as part of land access agreements, and are further protected by extensive regulation and legislation.
It is important that all parties – gas companies, insurers, and farmers – have a common understanding of the combined effect of insurance, legislative protections, and indemnities.