Parkes Shire's Drought Response Officer urges farmers and small business owners not to let insurances go.

Parkes Shire's Drought Response Officer Roger Kitson.

Parkes Shire's Drought Response Officer Roger Kitson.

NSW is experiencing one of the most severe droughts on record, with the Central West among the worst affected regions.

Many farmers and small businesses are staring their worst fear directly in the face - losing their livelihoods due to the ongoing dry conditions.

What might be farthest from their minds though, is losing their farm or business due to not being sufficiently covered by insurance.

Parkes Shire's Drought Response Officer Roger Kitson wants landholders and small businesses to know they have options when it comes to insurance.

"In order to juggle finances during times of severe drought, a number of farmers have let go of insurances because they simply can not afford the high costs," Roger said.

"Farmers and small businesses are forced to reduce their costs and expenditure in order to be able to afford to sustain their livelihoods during times of severe drought.

"Farmers can also become significantly time poor due to the extra daily duties."

Roger said all these factors combined can create a physical and mental landscape which inhibits the ability to make good decisions.

"One poor decision can cost a farmer or small business everything they have worked so hard to achieve and land that may have been in their family for many generations," he said.

"Whilst there are no subsidies or support for farmers and small businesses regarding insurance, there are options which can be taken to reduce overall costs.

"The take home message from insurance companies and famers who have suffered due to not maintaining their insurance is to always hold onto third-party comprehensive and public liability insurance cover."

Managing Director of Elders Insurance Western Plains Stephen Gunn said it's imperative that farmers sit down with their insurance professional and understand their options when reviewing their insurance needs.

"Through this process growers can understand the implications of the changes to their coverage and work with underwriters throughout the year to best manage these risks," he said.

Roger said it's also important to talk to your family, friends and neighbours when it comes to making big decisions.

"We all need to support each other through tough times," he said.

You can call Roger on 6862 3757 or email him at dro@ncentral.org.au