How to Choose Insurance for Tractors and Other Farm Equipment

July 11, 2022
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When you manage a farm of any size, you need a wide range of insurance products to protect yourself, your staff, and your equipment. Take a look at the farm equipment insurance that’s available so that you can better protect your property and investment. Your business is quite complex, and the myriad of insurance products below can help cover all your bases.

Be sure that you look through these coverages and remember that the commercial insurance sector is seeing more and more losses by the year.

What is Covered by Farm Equipment Insurance?

When you manage any sort of farm or agricultural business, remember that several devices, machines, and tools are covered under farm equipment insurance, including:

  • Tractors
  • Forage harvesters
  • Combine harvesters
  • Planters
  • Sprayers
  • Hay rakes or wagons
  • Small field tools and equipment
  • Irrigation equipment and systems
  • Office equipment and supplies

Because every aspect of your operation is covered under a policy like this, it would be foolish not to purchase as much insurance as you can. You can avoid any sort of business interruption when you have coverage for every item that keeps the farm running.

Losses Covered by Farm Equipment Insurance

Remember that there are several losses you might experience while managing your farm, but they are often specific to the policy. First, flood insurance is a separate policy you must carry independent of other coverages. If you don’t purchase flood insurance and your property is washed away, there’s nothing you can do.

On the other hand, farm equipment insurance generally covers:

  • Fires or explosions
  • Lightning strikes
  • Windstorm damage
  • Hail storms
  • Smoke damage
  • Theft
  • Vandalism
  • Accidents/incidents involving people and vehicles/machines

Insurance Coverage Options for Farm Equipment

Beyond purchasing basic policies for your farm equipment, you can specify the type of coverage you prefer, depending on the equipment you use, such as:

Commercial Auto

Passenger vehicles used for work should be insured as commercial vehicles. If not, your personal coverage could be canceled. Meanwhile, the limits and coverages on a commercial auto policy are much more robust.

Blanket or Scheduled Coverage

Blanket coverage is designed to handle all your equipment under one policy with one limit. Scheduled coverage, on the other hand, allows you to select certain items that must be insured, assigning specific values to each. In short, one is customizable and one is not. Speak with our agents to learn which is best for your operation.

Replacement Coverage

You can purchase specific coverages to replace whole irrigation systems, large agricultural machines, etc. This is a good way to tag each item with a specific value so that you can afford to replace it and move on in the event of a disaster or total loss.

Equipment Breakdown Insurance

Equipment breakdown insurance will help you get your equipment back to working condition, while also covering costs related to the breakdown. You may also purchase insurance for rented farm equipment. It’s not financially tenable to purchase certain devices, but you are liable for their repair or replacement in the event of an accident or incident during a rental period. This coverage takes care of those costs so that you can continue with business as usual.

Open Perils Coverage

With open perils coverage, you can protect your equipment from things like:

  • Rodent, insect, or animal damage
  • Intake of foreign objects
  • Snow damage

Think of this policy as a catch-all for the things that might not be covered elsewhere.

Contact Cormarc for Assistance With Farm Equipment Insurance

Contact Buren Insurance Group for assistance with your farm equipment coverage. Remember, there are several items you can cover under these policies, and you are wise to obtain as much coverage as you can. On the modern homestead, you never want to suffer through an extended business interruption that could have been prevented (and paid for) by quality insurance coverage.