Building Block teams up with XS Cover to offer Agri-GAP

The XS Cover Company is the first company to market two Guaranteed Asset Protection (GAP) products specifically for the agricultural market. In a new partnership with Building Block Insurance PCC Ltd, the Malta-based protected cell company, specialist GAP products have been tailored to the insurance needs of agricultural contractors and landowners purchasing new and second-hand high-value agricultural implements.

“Our AGRI-GAP insurance will give contractors, landowners and farmers the opportunity to insure against total losses caused by the depreciation in value on tractors and other high-value equipment,” said Julie Rodilosso, CEO of The XS Cover Company. ”But we have not forgotten those that buy second-hand and need protection against loss if they have a write-off. These are innovative products for this market and we confidently expect a lot of interest from brokers with agricultural clients.”

The XS Cover Company is administrating these products on behalf of Building Block Insurance PCC Ltd. Building Block specialises in the creation of niche and specialist insurance products, and Building Block CEO Paul Brierley said: “We are delighted to partner XS Cover Company and offer GAP insurance especially designed for agricultural businesses. We believe there is latent demand for GAP in this market, which has been under served until now.”

Julie explained that there are two policies available which are activated in the event of a total loss.  AGRI-GAP Return to invoice (RTI) is aimed at farmers and businesses buying new vehicles, trailers and implements and AGRI-GAP Return to Value (RTV), a product for farmers buying second-hand equipment.

AGRI-GAP Return to Invoice insures the amount between the insurance settlement based on depreciation and either the original purchase price or the outstanding finance balance at the time of loss. There is a maximum value of £200,000 with a maximum GAP payment of £50,000. Cover is provided for three or five years.

AGRI-GAP Return to Value is a suitable product for the small agricultural enterprise which has bought their equipment second-hand from a private seller or auction. This policy covers the insured for the shortfall between the current market price and the original purchase price, in the event of a write-off. It is available for agricultural vehicles up to the value of £200,000 and less than five years old.

Both these products are available to brokers who can administer them from The XS Cover Company trading platform, which can be white labelled on behalf of the brokers.