What Is Farms And Farm Machinery Insurance?

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Farms are becoming more and more dependent on machinery. However, not many farms have insured their machinery against break down. Though there are some good companies offering various farms and farm machinery insurance options, but not all farms are taking advantage of this. So, if you are a farm owner, you can easily access affordable farm insurance.     

Farm Equipment Risk 

Modern farm machinery has completely changed farms. It is now more equipment-intensive business. This has also changed the risks. In order to achieve greater output and efficiency, farmers are using their machines harder and longer. However, this also increases the risk of breakdown. Farmers are using modern precision farming techniques. They are using sophisticated systems which are sensitive and also prone to breakdown. And, then there is a risk of theft. 

If you have a farm and farm machinery insurance, the following losses are covered: 

  • Any direct damage to the insured equipment whether it has occurred on or off a covered location.
  • Loss of farm income when a piece of covered equipment breaks down.    
  • In case the breakdown of covered equipment results into the contamination, the additional cost of cleaning up and disposing of a hazardous substance is also covered. 
  • The insurance also covers the cost to limit the loss and fast recovery. 
  • If the covered equipment breakdown leads to spoilage of products and materials, this cost is also covered. 
  • If a covered electrical generating equipment breakdown, the expense of purchasing replacement energy is also covered. 

Why invest in equipment breakdown insurance? 

You standard farm owner’s insurance policies do not cover some risks including: 

  • Mechanical breakdown 
  • Undetectable circuitry impairment 
  • Electrical short circuit
  • Boiler overheating, cracking and bulging 
  • Pressure vessel cracking, bulging and collapse      

A comprehensive farms and farm machinery insurance covers a wide range of farm equipment. It can cover stationary farm machinery, mobile farm machinery, engines and motors. For example: 

  • Farm refrigeration units   
  • Generators for running farm machinery and back-up power 
  • Irrigation and farm animal water supply well pumps
  • Boilers and pressure vessels
  • Farm water heaters
  • Electrical distribution system 
  • Cooling, heating and ventilation systems 
  • Computer, GPS and electronic equipment 
  • Farm implements and external electronics for operating implements 

There are several companies offering different policies. To provide you with the best policy, the company should be able to understand your unique needs. To make sure that your needs are covered, work with a company offering customizable insurance plans. You can get and compare farm insurance quotes to find the most affordable one.

Different Types Of Farm Equipment Insurance

The majority of policies work in one of the following two ways: 

  • Each machine is insured separately as a whole. For example, based on their values, tractors, sprayers, combines etc. can have different insurance policies. Small farms have a limited number of equipment. So, the risk factor is also low. This type of policy is ideal for small farms.              
  • In a blanket policy, all the machinery is insured together up. You can claim a designated amount after considering the total value of the equipment. 

You can get in touch with an insurance advisor to invest in the right policy.