Livestock Disease Insurance

Mortality cover typically does NOT include death from disease — this requires a separate disease extension or policy. Disease and illness cover pays compensation when livestock suffer financial loss from disease, including vet treatment costs, forced culling, loss of production, and in some cases quarantine costs.

Notifiable disease cover is particularly important. Notifiable diseases trigger government culling orders under the Biosecurity Act, potentially eliminating your entire herd or flock. Compensation for government-ordered culling can range from $0 to full agreed value depending on your insurance wording.

Some policies offer all-risks disease cover — compensation for virtually all disease events — while others cover specific named diseases. Broader cover costs more but provides better protection for biosecurity-conscious farmers.

Mycoplasma bovis remains the most significant disease insurance concern for NZ dairy farmers since its discovery in 2017. Mycoplasma bovis causes mastitis and other infections that reduce milk production and can trigger culling. The disease is notifiable, and government response involves mandatory testing, movement restrictions, and in some cases culling orders.

Insurance coverage for mycoplasma bovis varies significantly between policies and providers. Some policies provide broad notifiable disease cover that includes mycoplasma bovis. Others exclude specific diseases. When arranging dairy cattle insurance, explicitly ask whether your policy covers mycoplasma bovis — this is not something to leave ambiguous.

Bovine tuberculosis remains a concern for NZ cattle farmers in certain regions. TB is spread by possum vectors and remains prevalent in parts of the South Island and some North Island regions. Cattle in TB risk areas face mandatory regular testing.

If your farm is in a TB risk region, discuss TB-related insurance implications with your broker. Cover for government-ordered TB testing and potential culling should be clarified. Some regions also face deer TB risk if you operate a deer farm in a TB-prevalent area.

Stud breeders — whether sheep, cattle, or deer — should consider disease cover essential. Losing a top sire to disease impacts not just the current loss but the entire future breeding programme. Disease cover for stud animals should be comprehensive, typically included in specified agreed value policies.

FMG and specialist rural brokers understand the particular disease risk for stud operations and can recommend appropriate cover levels. For valuable breeding stock, disease cover is not optional.