Stonegate to offer farmers bird flu insurance in industry first

Egg producers supplying one of the UK’s biggest packers and whose operations are disrupted by avian influenza are to be covered by business interruption insurance for up to six months.

Stonegate says it has secured an exclusive avian influenza insurance policy scheme with NFU Mutual and that it will fund the “core” cost of this cover on behalf of its organic and free-range egg suppliers.

See also: Farmers left at major risk with no insurance for bird flu

The scheme covers business interruption, not costs such as cleansing and disinfection, which farmers will have to pay or take out additional insurance for.

It is the first avian influenza business insurance cover that NFU Mutual has placed since October 2021.

It had pulled out of the market while other insurers had hiked up premiums on policies in the wake of the ongoing avian influenza crisis. 

Stonegate said it had taken the step to intervene on behalf of suppliers to create a more stable environment for farmers to operate in and to provide them with greater confidence to invest in their businesses.

Although the cover is free for suppliers, every one of those will need to contact NFU Mutual to arrange the cover.

Stonegate CEO Adrian Gott said he wanted to create a “stronger, more robust, sustainable supply chain to ensure our customers have reliable continuity of supply”.  

“This has been possible because of the exacting packing centre and processing standards that are at the head office of Stonegate in Lacock and the ancillary business that Stonegate does with NFU Mutual,” said Mr Gott.