Aquaculture Facility
Insurance Scheme
KNOWLEDGE AND EXPERIENCE
At Brennan Insurances we recognise that knowledge and
experience are what matters when it comes to the
aquaculture industries. The risks cannot be considered in
the same manner as high volume, homologous classes of
business such as motor insurance. Each aquaculture
facility is unique and has its own risk profile.
Over the years we have gained a wealth of experience in
the challenges and risks presented by this industry and
have continually developed our products and services to
maximize protection for our customers, at the fairest
price.
NEW AQUACULTURE FACILITY
As part of our commitment to continually improve the cover and service we are delighted to advise that we have arranged
a new facility with the following benefits:

Security is 100% Lloyd’s of London / RSA plc, both global leaders with excellent Financial Ratings.
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Capacity of €12,000,000 any one location.

Cover can be offered on specified perils or “all risks” basis and may be written 100% or as a subscription line.
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Facility currently writing Irish based risks.

This facility can include cover for stock mortality and marine equipment/hull. Additional Insurance requirements
(both inland / off shore will be provided under our “sister” Fish Processing Facility)

Significant point of difference to the historical Lloyd’s / RSA plc. aquaculture insurance market is that a large
capacity may be committed by Underwriters who has a long and detailed experience of the class.
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Brennan Insurances will provide technical support and assistance to ensure that clients understand the technical
nature of this product.
Claims handling will be streamlined to allow a dedicated claims team (managed by Brennan Insurances) provide a
streamlined service. This will allow Insurers to quickly establish their position regarding indemnity.
For more information please contact:
Liam Conlon
Tel:
Email:
(01) 639 5580 or 086 2402128
liam.conlon@brennaninsurances.ie
Eamonn Doherty
Tel:
Email:
(01) 639 5580 or 087 2352435
Eamonn.doherty@brennaninsurances.ie
Brennan Insurances, 12/14 Lower Mount Street, Dublin 2.
Phone: 01 639 5580. Email: schemes@brennaninsurances.ie.
Web: www.brennaninsurances.ie
Brennan Insurances is regulated by the Central Bank of Ireland.
Aquaculture Facility
Insurance Scheme
FREQUENTLY ASKED QUESTIONS
Q.: Can all aquaculture units be insured?
A.: In principle, yes. However, the rearing system must
be one that will enable the client to keep good control
of the stock so that accurate records can be produced
to substantiate a claim. In addition, certain rearing
systems and locations may be especially prone to
certain risks and comprehensive cover will not,
therefore, always be available.
Q.: What does the insurance cover?
A.: The stock policy covers mortality or physical loss of
the insured animals as a result of a sudden and
unforeseen event. Policies can either be arranged to
cover “all risks” of mortality or loss (with certain
exclusions) or against certain specified perils selected
by the insured. Policies will normally include total loss
of market value of the insured stock resulting directly
from an identified pollution which renders it unfit for
human consumption. Transit cover may be included
within an annual rearing policy and stand-alone transit
cover is available for larger operations.
Q.: How does the policy valuation work?
A.: The policies are written on an “agreed values” basis.
This means that the policy includes a pre-agreed basis
of valuation for stock in various size ranges. This
valuation forms the basis for calculating the sum
insured and any claims payment. The only exception to
this formula is that the policy entitles the insurers to
replace affected stock rather than paying cash in the
event that they can do this at a lower cost than the preagreed basis of indemnity.
Q.: How is the basis of indemnity worked out?
A.: The principle of the insurance is that the client will
be indemnified for the anticipated value of their stock.
For stock up to market size, this value is production
cost. Once the stock achieves a size at which it has a
genuine sales value, the indemnity should reflect sales
value (less any savings in processing and transportation
which will not be incurred in the event that stock dies
on site). Insureds can establish a number of valuation
bands which may be based on stock age, size or weight,
depending on how they keep their stock records. These
bands should be designed to work in with the points in
the production cycle at which stock are graded or
counted.
Q.: What happens if I have a loss?
A.: In the event of a loss, the insurers will send an
independent Loss Adjuster to evaluate the facts and the
amount of a loss. Each month the insured is obliged to
send in declarations of the stock numbers and sizes
that have been on site in the preceding month. This
information forms the starting point for loss evaluation.
The policy document also provides guidance as to what
the insured should do in order to assist in validating the
cause and extent of loss.
Q.: How do I calculate the sum insured?
A.: The sum insured must reflect the maximum insured
value that the insured anticipates will be exposed
during the policy period. If this figure is not high
enough at the time of loss, the claims payment will be
severely reduced. Insurers accept that stocking and
harvesting plans can change and that this value is an
estimate, which can possibly be amended during the
currency of the contract if growth, mortality or
marketing plans are different to what was originally
projected. In order to work out this figure, the insured
must project the number and size of stock which will be
Brennan Insurances, 12/14 Lower Mount Street, Dublin 2.
Phone: 01 639 5580. Email: schemes@brennaninsurances.ie.
Web: www.brennaninsurances.ie
Brennan Insurances is regulated by the Central Bank of Ireland.
Aquaculture Facility
Insurance Scheme
exposed during each month of the policy, taking
account of anticipated growth, normal mortality,
introduction of new stock and harvesting regime. The
insured basis of indemnity should then be applied to
the stock projections in order to calculate the
anticipated value at risk in each month of the policy
period. The largest monthly value is the sum insured.
Q.: How about premium?
A.: Each aquaculture risk is unique and the premium
rate will therefore vary from farm to farm, even for
identical levels of cover. In addition, each client has
different preferences for the type of cover that they
wish to purchase and the premium that they can afford
to pay. Each policy is therefore a tailor-made contract
combining the best combination of cover and cost for
that specific client. For most farms the policies are
arranged on an adjustable basis which means that a
deposit premium is paid initially and the final premium
cost is calculated at the end of the year, by applying the
premium rate to the actual values that have been
exposed under the policy.
Q.: How big does a loss have to be before the policy
will pay out?
A.: Aquaculture is a high risk industry and if the
insurance were to pay for each individual animal that
died, the premium cost would be prohibitive. Each
policy therefore contains a self-insured retention. This
normally takes the form of a deductible calculated as a
percentage of the value at risk at the time of loss (not
as a percentage of the total sum insured or the loss
amount). The precise size and means of application of
this percentage will vary from client to client and has a
large impact on the premium cost. This is an important
aspect of the policy design and Brennan Insurances will
Brennan Insurances, 12/14 Lower Mount Street, Dublin 2.
Phone: 01 639 5580. Email: schemes@brennaninsurances.ie.
Web: www.brennaninsurances.ie
Brennan Insurances is regulated by the Central Bank of Ireland.
l work with clients to establish a suitable balance
between risk retention and cost.
Q.: What is the procedure for obtaining a quotation?
A.: Because each aquaculture operation is different and
they all have their own particular risk profile, it is
necessary to gather a lot of information to enable the
Underwriter to assess the risk. Although a pre-risk
survey is sometimes required, most insured’s are
reluctant to pay for such a survey until they know that
they will receive realistic insurance terms. The normal
procedure is, therefore, for the client to complete a
detailed application form and supply additional
information (such as location maps, diagrams,
photographs and stock value projections).
The
Underwriters will evaluate this information and
calculate the terms and conditions that they are
prepared to offer and the cost of this cover. A variety
of different options from an expensive but very
responsive contract to a more affordable catastrophe
only cover may be obtained. Terms will sometimes be
offered subject to a survey within a certain period of
the policy start date and with a condition that any
requirements of the survey are complied with or the
terms may be varied.
Quotations will be provided with no obligation to the
client to purchase any form of cover.
Q.: What is the security rating and global licensing
position of the facility?
A.: As the risk carriers for GAIC are all Lloyd’s syndicates
/ RSA plc, the facility has a Standard and Poors Security
Rating of A+. It is licensed to underwrite business in 79
territories and can accept risks from over 200 countries
and territories in all parts of the World.
Aquaculture Facility
Insurance Scheme
Fish Farm Questionnaire
Please complete and return this form to Liam Conlon or Eamonn Doherty



By Email to: schemes@brennaninsurances.ie
By Post to: 12/14 Lower Mount Street, Dublin 2
By Fax to: (01) 639 5590
Proposer Name
Proposer Address
Date Established
Site Location
No of Cages
Construction of Cages
Method of Feed
Stock Details
Type
Quantity
Projected Value
Organic/ Non Organic
5 Year Claims History
Signed:
Print Name:
Brennan Insurances, 12/14 Lower Mount Street, Dublin 2.
Phone: 01 639 5580. Email: schemes@brennaninsurances.ie.
Web: www.brennaninsurances.ie
Brennan Insurances is regulated by the Central Bank of Ireland.
Date: