Insurance risk as new shed rules due to begin

Steel framed buildings are a common feature of most modern farmyards but the rules on their construction are set to tighten from the beginning of July. As of 1 July, new European regulations will mean it is illegal to sell or supply a steel framed building without it having a CE mark, an assurance of its quality and safety.

While the rule change will not make it an offence for a farmer to purchase or receive one there are potential insurance implications, with any new build non-CE marked steel framed building unlikely to be considered eligible for insurance cover.

Without building insurance, the impacts on any farmers caught out could be grave. Any repeat of the roof collapses that struck many agricultural buildings in the storms and heavy snow at the start of last year and in 2010, are likely to prove especially costly to owners where structures are not covered by an insurance policy.

Mark Ellerington, managing director of family-run firm Ellerington Engineering in Bishop Burton near Beverley, said he had made a significant investment in training his staff and changing the firm’s welding process to become a CE accredited supplier.

He is concerned that some farmers are unaware of the rule changes and could be caught out.

“Farmers should now request to see the Accreditation of Performance by whoever they are getting to provide their new building. It is something that is slightly under the radar at the moment but it is an important change that could have financial implications for farmers who may find that they cannot get insurance on a new build.”

The regulations are important measures, Mr Ellerington added, to weed out the “cowboy” builders: “I think the changes are levelling the playing field for people that do want to do the job right.”

Louis Fell, a partner at Bedale-based land agents George F White, said farmers who construct their own steel framed buildings should seek advice from their insurer to be certain whether buildings are covered against damage.

“I have farming clients that build their own buildings. Often the reason they do that is because they want a stronger structure built to their own specification. In order to compete, a lot of shed builders have used weaker grades of steel so the strength of the buildings themselves have declined.

“Some farmers are a little annoyed that they are not going to be able to build their own sheds because there is a risk for them that if a roof collapses on their combine for example they are not going to be protected. If this is the case, my advice would be to think about what they store where and it may be better to use these buildings for storing non-valuable items such as straw or fertilisers rather than machinery that costs thousands of pounds.”

Rural insurer NFU Mutual said it wanted to reassure its farmer policyholders that buildings erected before the new CE regulations come into place will not be affected by the new regulations.

CE marking is a requirement for many products traded in the European economic area. Not all products are required to be CE marked, but some products have specific legislation that requires it. A CE mark shows that the product complies with all the relevant European legislation covering the products health, safety or environmental requirements.