The farmer who was refused a renewal on his insurance in the middle of the foot- and-mouth epidemic has been offered a lifeline by RK Harrison.
Tom Warde-Aldam, near Hexham, Northumberland, made national headlines when Marsh Private Client Services told him that the Lloyd's syndicate had refused to renew the section on foot-andmouth. This was despite the policy's having been renewed for the past 30 years.
RK Harrison has stepped in to offer Warde-Aldam cover. But there are two conditions. Firstly, he must place all his insurance through RK Harrison, and secondly, the foot-and-mouth section will be excluded for 30 days. The cover is underwritten by Norwich Union.
“We will try to get a quote for farmers on a case-by-case basis, depending on the risk,” said regional director Pat Jones.
Warde-Aldam is still considering his options.
The £50m figure is much lower than the total economic cost of £9bn estimated by the Centre for Economics and Business Research. But S&P warned that if the containment period were prolonged and sparked recession, related arson and burglaries could cause insured losses to rise.