AFG Plantation Insurance Scheme

Protecting your Investment

Plantation trees are valuable, and become more so over their lifetime. Recognising this, most private forest growers insure their trees against fire, windstorm and other selected perils.

Forest insurance is a specialised service offered by only a few insurers. The insurance market is cyclical. When there is surplus underwriting capacity, insurance is easy, to obtain and rates fall. At other times, insurers withdraw capacity, and premiums rise. The effects of this market cycle can be exaggerated by the fact of there being so few insurers.

In such a climate, choosing a forest insurer can be risky, unless a grower is choosing a well-established scheme with a reputable underwriter of longstanding.

Australian Forest Growers Plantation Insurance Scheme is operated on behalf of AFG by endorsed brokers in Australia, who arrange for the Scheme to be underwritten by Lloyds of London.

Lloyds of London has underwritten the Australian Forest Growers Plantation Insurance Scheme since it was established in 1984. During that time, although premium rates have moved with the market, the capacity of the underwriters has always been secure. AFG members who have insured continuously with the Scheme have enjoyed substantial discounts below the rates available ill the general market.

With the AFG Plantation Insurance Scheme, if there's a catastrophic loss (such as bushfire damage), you can be sure that your claims will be paid, and that insurance will still be available next season at a competitive rate.

The AFG Plantation Insurance Scheme gives you security and confidence, at affordable rates, year after year!

Click here to open up the Plantation Insurance Scheme Brochure.

Features of the Scheme Coverage

A plantation can be insured for total and partial loss as a result of fire, lightning, windstorm (cyclone) and aircraft damage. The Lloyds of London forestry policy is not subject to co-insurance average which means that if the value of the property insured exceeds the sum insured, then you would be required to contribute proportionally to each and every loss.

Agreed value policy

The value of the plantation is agreed at the time the cover is placed, depending upon species, age, location, condition and management. In the event of a loss, the plantation owner is paid the agreed value.

Recommended valuation tables are available for Pinus radiata and Eucalyptus globulus, and are published in the insurance proposals by the brokers. The valuations are prepared by an independent national firm of consulting foresters and endorsed by Australian Forest Growers. Valuations in the range of high, medium and low are available in most states. Members have the right to submit different valuations for particular circumstances or other species for the underwriter's acceptance.

Qualification for acceptance

A plantation is automatically accepted for insurance at the rates current for the Scheme subject to a period of qualifying membership of Australian Forest Growers, provided the plantation meets the requirements for management and firebreaks.

There are set dates each year by which a commitment to insure must be made.

No claim bonus and continuity discount

The Scheme currently provides a discount of 3% per year for each consecutive year of renewal, up to a maximum of 21 % after 7 years. A further discount of 3% per year for each claim-free year (up to 21% after 7 years) is available as a No Claim Bonus. The maximum combined discount for continuity and no claims is currently 42%.

Extensions and public liability

Public liability cover is available as an extension of the policy. Other optional extensions include: claims preparation costs, and loss mitigation expenses up to a maximum of $100,000 and removal of debris - 10% sum insured or $250,000 whichever the lesser.

Plantation loss limit

The maximum loss limit on any one plantation is $12 million.

Salvage and replanting

Growers have the option of reducing the cost of insurance on older pine trees by, insuring 'net of salvage'. Another option is to insure for the cost of replanting only.


A range of 'deductibles' (sometimes called 'excess') enables growers' to choose their own levels of financial risk. The higher tile deductible the plantation owner is prepared to accept, tile lower the premium will be.

Premiums are currently well below 1% of the plantation value each year, and the premium is lower in areas of lower risk and can be reduced by various deductions over time.

Insurance Contact Information

For more information about insurance, contact the endorsed broker for the AFG Scheme in your State:

In New South Wales and Australian Capital Territory:

Michael Burns
1300 503 503
Phone:(02) 9376 7826