A joint statement by the Insurance Council of Australia, the Australian Petroleum Production & Exploration Association (APPEA), National Farmers Federation (NFF), Queensland Farmers’ Federation (QFF), AgForce, and Cotton Australia.
The general insurance, oil and gas, and agriculture industries confirm that general insurance policies
for farm risk continue to remain available, through various insurers, to farmers who host natural gas
Every farmer’s situation is different, so it is appropriate for individuals to discuss with their insurance
agents/brokers their circumstances regarding liability insurance cover. However, public liability
insurance offered to farmers is designed and priced to cover farm risk only, and therefore may not
cover losses associated with third party infrastructure including infrastructure and activities
associated with natural gas production.
Farmers who host natural gas activities are protected by indemnities offered by gas companies as
part of land access agreements, and are further protected by extensive regulation and legislation.
It is important that all parties – gas companies, insurers, and farmers – have a common
understanding of the combined effect of insurance, legislative protections, and indemnities.
The Insurance Council, APPEA, NFF, QFF, AgForce, and Cotton Australia are therefore working
together with the shared objectives of ensuring there is a common understanding, and providing
assurance to farmers who host gas activities that they are, and will continue to be, appropriately
protected against loss. It is hoped that this position will soon be reflected in a common indemnity
provision being included in all land access agreements and a common public liability position in farm