Vero can confirm that it has made the decision to exclude claims for damage arising from Genetically Modified Organisms (GMOs) from Farm Liability Policies.

This change only impacts liability policies. At present on property policies, material damage caused by pollution and contamination is already excluded and growing crops generally aren't insured except for defined perils such as fire, hail, earthquake etc.

This decision has been made on the basis that the use of Genetic Modification technology in farming presents potential liability risks that at present cannot be quantified. The potential risks associated with GMO’s is unknown at present given that it is a relatively new technology and we are unable to assess the potential financial exposure should claims arise.

Until we have more information and are able to quantify the extent of any risk and consequently to price that risk we are likely to maintain this position. We will continually monitor developments and review our position as more information comes to hand.

Given the high level of interest in GMO and the possibility that at some time in the future commercial release of Genetically Modified commercial crops in New Zealand may be approved, it was timely to review and update our position on this matter. We have been selectively applying GMO exclusions on specific policies for some time. This action is in line with developing global practice.

The exclusion is effective from 1 October 2003 and currently only applies to FarmPlan and FarmPack liability policies. Insurance Brokers and Advisors were sent letters earlier in the month informing them of this change in cover.

If any customers require further information, we advise them to contact their Insurance Adviser or local Vero office.



For more information contact Leonie Williamson, Vero 09 363 2442. Issued on behalf of Vero by Jane Dodd, Network Communications 09 379 3154