Livestock Insurance FAQs
Common questions about livestock insurance — answered by our specialist rural insurance team.
General
Do I need livestock insurance in New Zealand?
Livestock insurance is not legally required in NZ, but it is strongly recommended for farmers whose livelihood depends on their animals. The cost of being uninsured can be devastating — a single disease outbreak, flood, or road accident can wipe out years of breeding investment.
How does livestock insurance work in NZ?
You pay an annual premium to insure your animals. If a covered event occurs (death, disease, theft, etc.), you make a claim and receive compensation up to the insured value, less any excess. Blanket policies cover entire herds at a per-head rate; specified animal policies cover individual high-value animals at an agreed value.
Who are the main livestock insurance providers in NZ?
FMG (Farmers Mutual Group) dominates the NZ rural insurance market with approximately 65-70% market share. Other key providers include Aon, Gallagher Insurance, NZI, and Gerrards Insurance (specialist rural broker). Each provider has strengths for different livestock types and farm situations.
Coverage
What does standard livestock mortality cover include?
Standard mortality cover pays the agreed or market value of your animal if it dies from covered causes — typically accidental death, electrocution, drowning, fire, and specified weather events. Disease deaths and weather event deaths are often covered under separate add-on policies.
Does livestock insurance cover Mycoplasma bovis?
Standard mortality cover may not cover government-ordered culling for M. bovis management. You need explicit disease & illness cover that includes notifiable disease scenarios and government-ordered destocking. Check your policy wording carefully, or speak with an adviser who can review your cover.
Is natural disaster covered in standard livestock policies?
Usually not. Natural disaster cover (flood, cyclone, snowstorm) is typically an add-on to base mortality cover. Cyclone Gabrielle in 2023 showed many farmers that their standard policies did not cover weather-related losses. Always confirm natural disaster cover is explicitly included in your policy.
What is post-shearing exposure cover?
Post-shearing exposure cover protects against sheep deaths in the days immediately following shearing, when they are vulnerable to cold, wet, and windy weather. FMG offers this as a specific add-on in their farm pack. It typically covers the first 7-14 days after shearing for the shorn mob.
Costs
How much does livestock insurance cost?
Costs vary significantly by species, animal values, location, and coverage type. Rough guides: cattle blanket cover ~0.5-1.5% of herd value annually; sheep blanket cover ~$0.60-1.20 per $100 insured value; deer (stag) cover can be 2-4% of agreed value. A licensed adviser can get you accurate quotes.
How can I reduce my livestock insurance premiums?
You can reduce premiums by: choosing a higher excess, bundling cover into a farm pack policy, maintaining good biosecurity and claiming history, and comparing quotes from multiple providers. An independent adviser with access to multiple insurers can often find better value than going direct to one provider.
Claims
How do I make a livestock insurance claim?
Contact your insurer (or broker) immediately when a covered event occurs. For mortality claims, you will need a vet certificate confirming cause of death, or a post-mortem if cause is uncertain. Document the incident with photographs and records. Keep all receipts for emergency veterinary treatment.
How long does a livestock insurance claim take?
Simple mortality claims with clear cause of death can be processed within 5-10 business days. More complex claims (disease outbreaks, natural disaster mass losses) can take longer — 2-6 weeks is typical. Your adviser can help expedite claims and liaise with the insurer on your behalf.
Providers
Is FMG the best livestock insurance provider?
FMG is the most experienced NZ rural insurer and is the right choice for many farmers. However, they are not always the best value. Aon, Gallagher, and NZI are worth comparing, particularly for farmers with unusual livestock types, high-value stud animals, or complex farm operations. An independent adviser can compare all options.
What is Gallagher Insurance known for?
Gallagher specialises in unusual and exotic livestock that standard insurers may not cover well — alpacas, llamas, rare breeds, high-value show animals, and specialist breeding stock. If you have livestock that FMG is reluctant to cover or that requires high agreed values, Gallagher is worth consulting.