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Disease & Illness Cover NZ

Cover for financial losses when livestock suffer from notifiable diseases, illness outbreaks, or government-ordered culling.

💲 From $100/year⚖️ FMCA Licensed⏰ 24hr Response

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About Disease & Illness Cover in New Zealand

Disease and illness cover is arguably the most complex — and for many farmers, most critical — component of a comprehensive livestock insurance programme. While mortality cover addresses sudden, accidental deaths, disease cover addresses the slow-moving but often devastating financial impact of illness outbreaks, notifiable disease events, and government-ordered culling.

The Mycoplasma bovis outbreak that began in 2017 put livestock disease insurance in the spotlight for New Zealand dairy farmers. Over 170,000 cattle were culled, with government compensation exceeding $200 million. However, many farmers discovered their standard livestock policies provided little or no assistance with the economic losses they faced — lost production, herd rebuilding costs, and operational disruption. The lesson was clear: disease cover must be specifically included, not assumed.

For poultry farmers, avian influenza (bird flu) represents a similar existential risk — a single outbreak can result in the forced culling of an entire flock, often within days of detection. For pig farmers, diseases such as Porcine Epidemic Diarrhoea (PED) or African Swine Fever — while not yet established in NZ — represent biosecurity threats that make disease cover essential. Even sheep and beef cattle operations face risks from footrot, facial eczema, and respiratory disease outbreaks.

Disease & illness cover in New Zealand can include: mortality from disease, veterinary treatment costs, forced culling and disposal, loss of production (on comprehensive policies), and compensation for government-ordered destocking. The scope varies significantly between insurers and policy types — making specialist advice and careful policy comparison essential.

A licensed rural insurance adviser can help you navigate the distinctions between what is covered under a combined livestock policy versus separate disease cover, identify the gaps in your current programme, and find the policy from FMG, Aon, Gallagher, NZI, or specialist underwriters that best fits your operation and risk profile.

What Does Disease & Illness Cover Cover?

Notifiable Disease Mortality

Death of animals resulting from a notifiable disease — including Mycoplasma bovis, Bovine Tuberculosis (TB), and other government-listed diseases.

Emergency Veterinary Treatment

Costs of emergency veterinary treatment for covered disease events, including diagnostic testing, medication, and specialist consultations.

Forced Culling Costs

Where animals must be destroyed as part of disease control, cover includes the value of culled animals and the cost of destruction and disposal.

Government-Ordered Destocking

Compensation where government agencies (MPI) order the culling or removal of animals as part of a national disease control programme.

Disposal & Cleanup

Costs associated with the safe disposal of diseased animals, including transport to rendering facilities and decontamination of premises.

Loss of Production (Comprehensive)

Some comprehensive policies include compensation for lost milk production, wool, velvet, or meat while an operation is affected by a disease event.

Common Exclusions to Be Aware Of

Diseases present in your herd or flock at the time the policy was taken out
Death from accidental causes (covered under a mortality policy)
Routine veterinary costs — vaccinations, drenching, standard health management
Death from parasitic infestations unless specified (e.g., flystrike may be excluded)
Diseases that arise from poor management, inadequate biosecurity, or failure to comply with NAIT obligations
Losses from diseases not listed as notifiable by MPI unless specifically included in the policy
Production losses unless comprehensive production cover is included

A licensed rural insurance adviser can explain exactly what is and isn't covered under any policy before you commit.

Who Needs Disease & Illness Cover?

Dairy farmers (Mycoplasma bovis risk)
Poultry farmers (avian influenza risk)
Pig farmers (disease outbreak risk)
Any farmer whose livelihood depends on flock/herd health

How Much Does Disease & Illness Cover Cost?

Disease & illness cover premiums depend on species, herd size, location, biosecurity practices, and the scope of cover. For a 200-cow dairy herd, disease cover might cost $500–$2,000 per year depending on the policy breadth. The cost of not having it — as Mycoplasma bovis demonstrated — can run into hundreds of thousands of dollars for a single affected operation. Most advisers recommend disease cover be considered alongside mortality cover as a standard part of the livestock insurance package, not an optional add-on.

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Providers for Disease & Illness Cover

FMG

Specific Mycoplasma bovis and notifiable disease endorsements available. Market-leading rural expertise.

Aon

Access to specialist underwriters for complex disease scenarios, including poultry and pig operations.

Gallagher

Good for poultry and pig intensive farming disease risk. Specialist broker with global connections.

NZI

Farm pack includes basic disease cover as standard. Good value for standard operations.

How to Get Disease & Illness Cover in New Zealand

Contact LivestockInsurance.co.nz and describe your livestock operation — species, herd or flock size, location, and any specific disease concerns you have.

A licensed rural adviser will discuss your biosecurity practices, existing insurance, and the disease risks most relevant to your region and species.

Your adviser will compare disease cover options from FMG and specialist underwriters — explaining what each policy does and does not cover in plain English.

Once you select a policy, your adviser will handle the paperwork and ensure your cover is active. They remain available to assist if you ever need to make a claim.

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Livestock Types That Need Disease & Illness Cover

Cattle

Deer

Goat

Pig

Frequently Asked Questions — Disease & Illness Cover

Does standard livestock insurance cover Mycoplasma bovis?

Not necessarily. Standard livestock mortality policies typically cover accidental death, not death from disease. Mycoplasma bovis — and other notifiable diseases — are usually covered only under a specific disease & illness policy. Given the outbreak's impact, many NZ dairy farmers have now added disease cover as a standard part of their programme.

What is the difference between a notifiable disease and a regular illness?

A notifiable disease is one that must by law be reported to MPI if detected on your farm. These are diseases with significant biosecurity implications — such as Mycoplasma bovis, Bovine TB, Foot and Mouth Disease (FMD), and Avian Influenza. Regular illnesses like respiratory disease or facial eczema are not notifiable but may still be covered under a disease & illness policy — check with your adviser.

Can I get disease cover if I've already had a disease issue on my farm?

This depends on the insurer and the specific disease. Some pre-existing disease history may result in exclusions for that specific disease, while others may be insurable at a higher premium. An adviser can help you understand what is insurable given your farm's history and what disclosures you need to make.

What happens if MPI orders my animals to be culled?

If your policy includes government-ordered destocking cover, you should be compensated for the value of culled animals (less any government compensation you receive). The policy will specify how the animal values are calculated — market value or agreed value. It's important to notify your insurer as soon as any MPI investigation begins, before any culling occurs.

Is disease cover worth it if MPI compensates for notifiable disease culls?

Government compensation for notifiable disease culls often covers only a portion of the animal's value — typically based on schedule prices rather than market or replacement value. Production losses, herd rebuilding costs, and operational disruption are rarely fully covered by government compensation alone. Disease insurance fills this gap. Your adviser can help you model the scenarios most relevant to your operation.

Useful Resources & Further Reading

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