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Tractor and Farm Equipment Insurance

Tractor and Farm Equipment Insurance

Your tractor is critical for running a successful farm. And it’s probably some of your biggest investments, too. Insuring all of your equipment, from your tractor to your skid steer, is key to keeping your farming operation running smoothly — especially in the event of the unexpected. Let’s take a look at how farm machinery and equipment insurance can protect your investments with customized coverage built for your specific needs.

What Is Tractor and Farm Equipment Insurance?

Your farm equipment helps you run a successful business and if something were to happen to any of it, you’d have some pretty major setbacks. Simply put, an insurance policy for your tractor and farm equipment helps protect your investments and your financial assets. It’s a financial safety net in the event your equipment is damaged, cause damage to property or if they cause damage to another person.

Do I Need Farm Equipment Insurance?

If you have a car, you probably have car insurance, right? You purchase car insurance to protect yourself financially in the event of an accident. This way, you don’t have to pay out of pocket for expensive repairs and/or damages that result from unexpected incidents. Having insurance for your tractor and farm equipment is important for the same reason. If you were to get into an accident, like a wreck or a fire, or if your tractor was stolen, having insurance would help cover the expensive cost to repair or replace your equipment.

What Farm Equipment Is Covered?

From tractors to office equipment, we want to make sure you’re protecting everything that helps your operation run smoothly. Take a look at common equipment that’s typically covered with farm machinery and equipment coverage:

  • Tractors
  • Combines
  • Forage harvesters
  • Planters
  • Sprayers
  • Hay rakes and wagons
  • Other field equipment
  • Farm office equipment
  • Irrigation equipment
  • Tools and supplies

Farm Equipment and Tractor Insurance Coverage

When you insure your farm or ranch with American Family Insurance, your tractor and farm equipment are typically covered against losses or damages caused by events such as:

  • Fire
  • Lightning
  • Windstorm
  • Hail
  • Smoke
  • Theft and vandalism
  • Collision

You’ll also be covered under the liability portion of your farm and ranch policy if, when using your tractor or other farm equipment, you cause accidental bodily injury to another person or damage to their property.

You can choose between two methods for covering your farm machinery and equipment.

Blanket coverage. Blanket coverage is available and intended for insuring all your farm personal property inventory under one total limit. An advantage of blanket coverage is our co-insurance terms. This means, that if you cover your farm personal property to the full value of all property, then there is a built-in coverage cushion for when property values fluctuate or if you add property which increases the actual blanket value.

Schedule coverage. On the other hand, a scheduled coverage lets you pick individual items that you want to insure and you can assign a specific amount of insurance to each item. This is a great way to customize your coverage based upon your specific needs, usage and budget. It also gives you adequate limits for your higher valued items.

Additional Farm Equipment Insurance Coverage

Your farm involves many pieces that work together to keep it moving forward, and it’s important that in the event of the unexpected, your entire operation isn’t put on hold due to one unfortunate instance. With our additional farm equipment insurance coverage options, you can find more ways to protect your assets so you can get back on track as quickly as possible.

Replacement cost for irrigation systems. Water is essential to your crops and their success. With this coverage, depreciation of your irrigation system isn’t applied and we’ll work to replace it to keep your operations running smoothly.

Replacement cost for machinery and equipment. This is designed for machinery and equipment that’s 10 years old or newer. It should be insured for full replacement cost value as co-insurance does apply.

Equipment breakdown. If you have a pivot irrigation system where arcing could cause an electrical breakdown to the digital control panel, the panel would need to be replaced as soon as possible since there are crops at risk. Or, say you own a boiler used to heat a dairy parlor and it overheats due to lack of water being mechanically transferred and circulated for cooling purposes, which in turn upsets your work routine. Equipment breakdown coverage can help cover associated costs to get you running smoothly again.

Equipment rented or borrowed from others. If you’re renting or borrowing equipment, this endorsement protects the owner’s equipment if there’s damage and protects you financially from having to cover the costs to repair that damage.

Farm machinery and equipment — open perils. Adds additional peril coverage to your machinery and equipment for events like rock ingestion, rodent damage to wiring, collapse from the weight of snow, and more. Your agent can walk you through the open perils so you can learn more about how this coverage can protect you.

Ingestion of foreign objects for farm machinery and equipment coverage. Ingestion of a foreign object into your machinery or equipment can cause a lot of damage. This coverage allows you to purchase coverage for damage only caused by ingestion of a foreign object (e.g. rocks). You only select a limit that considers the potential total cost for all parts and labor to repair the damage rather than a limit for the entire piece of machinery.


Are You Ready for a Tractor & Equipment Quote?

Are you interested in learning more about how tractor and farm equipment insurance can help you protect your investments? Your American Family Insurance agent will help you build a customized policy that fits your farm’s unique needs.

*These summaries represent only a brief description of select coverages. Coverage features and limits vary by state. Some products are not available in every state.

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