Tönnies insurance protects farmers from high liability risks in the event of an epidemic
When animals infected with African swine fever were delivered to several German slaughterhouses in June 2024, the situation caused considerable alarm: Production had to be stopped immediately, and all meat that had already been processed at the time of delivery had to be destroyed. Furthermore, the question arose as to who would bear the costs of this multi-million-euro loss. To ensure financial security for all parties involved in the future, Tönnies, based in Rheda-Wiedenbrück, has now implemented a pioneering solution.
Anyone who delivers their animals to one of the family-owned company's slaughterhouses in the future will automatically be covered. "A comprehensive analysis has shown that farmers' liability insurance policies previously had gaps in coverage, both in terms of the sum insured and the scope of the insurance. For quite a few, disease outbreaks were even completely excluded. In a serious case, this can be a threat to their livelihood. This is precisely where our protective umbrella comes in," explains Dr. Wilhelm Jaeger, Head of Agriculture at Tönnies. To this end, the company, together with the renowned broker Marsh and in close consultation with the Westphalia-Lippe Agricultural Association (WLV), has developed a corresponding liability protection umbrella for Tönnies partners. "We provide farmers and livestock dealers with security and vital protection in the event of a claim – and at conditions that an individual farmer could never have obtained from their own insurance," emphasizes Wilhelm Jaeger.
The insurance product automatically insures suppliers. The liability protection shield operates in addition to the farmer's own liability insurance. "No supplier needs to register separately, and there's no additional effort required," emphasizes Dr. Jaeger. The insurance covers, among other things, personal injury, property damage, product defects, and recall costs. This provides farmers with significantly greater protection than is typical in the market. For example: A farmer's own liability insurance covers damages up to approximately €2 million, but the actual damage exceeds this amount. In such a case, the liability protection shield kicks in and also protects the farmer. "Otherwise, they could be held personally liable with their private assets," explains Wilhelm Jaeger.
This applies particularly to an animal disease outbreak like African swine fever. The risks posed by potentially undetected infected animals being delivered are explicitly taken into account. Likewise, consequential damages such as business closures and production losses in slaughterhouses and processing plants are considered. "Especially in the current climate and considering the disease outbreaks in Germany in recent years, this is a particularly important and even essential safeguard," says Wilhelm Jaeger.
With this liability protection scheme, the family-owned company assumes responsibility for its suppliers and establishes reliability as a partner to agricultural businesses. The company initially bears the costs, which amount to a low double-digit cent figure per pig. In a later phase, these costs will be factored into the price through upfront expenses. "We are pleased that we can now offer our farmers reliable and, above all, unbureaucratic security in the event of actual damage. This protection should become an industry-wide standard," emphasizes Jaeger.
According to estimates gathered from participating companies, the contacts and negotiations carri...
The decision followed years of extensive negotiations by the German Federal Ministry of Food...
The Brazilian Beef project, an initiative of the Brazilian Association of Meat Exporting Ind...
