Liability arising from everyday farm use of horses or unregistered vehicles may no longer be covered under a wording change in CGU’s Countrypak policy, a broker has warned – despite reassurances from the insurer that there's no change to coverage.

CGU advised brokers in January about the Countrypak Plus changes, with an updated product disclosure statement in effect from April 6 for new business and renewing policies.

The new wording – under a heading “farm hosting and outdoor activities” – excludes liability cover for host farming, outdoor or recreation activities for which payment is received, “or any liability in connection with activities” that are then listed.

The broker, who has more than three decades’ experience, says the change has “gutted the liability” cover by extending the exclusion, picking up instances when a third party may be hurt during normal agricultural work, such as when a farmer is using a quad bike, tractor or other machinery.

“The CGU policy now excludes any liability arising out of the use of agricultural vehicles and horses, whereas it used to only exclude liability for these items when the insured conducted host farming or leisure activities for payment,” the broker said.

The broker also criticises the lack of information highlighting the change.

CGU says the wording in section seven – business liability, clause 10 a and b was refined to provide clarity around policy coverage.

“There was no change to underwriting intent or coverage,” a spokesperson said.

“Business liability is intended to cover third party personal injury or property damage in relation to the farming business.”

The intent of the policy under section seven is to cover the farmer – the insured – for their liability to a third party for injury and property damage during their day-to-day farming business activities, the spokesperson says.

Clause 10 is intended to exclude liability where a farmer is undertaking host farming activities, CGU adds.

The broker says despite CGU’s assurances, “that’s not what is written”.