Farming takes a lot of specialized machinery. Specialized machinery and equipment that you otherwise wouldn’t be able to do your job without. And, This is why it is imperative to not only make sure that these machines are protected to the fullest, but to ensure that they are licensed for road use.
Your farm business insurance policy must have coverage arranged for combines, seeders, tractors, sprayers, balers, and threshers if they operated by the business.
The Difference Between Comprehensive And Basic Coverage
Here at ProfessionalsCoverage, we can connect you to brokers and agents that offer various packages. Two of the most common packages currently available are basic and comprehensive. Each different packages were designed for specific situations and will offer protection in a variety of situations. The basic package will cover your equipment in the event that it is involved in a fire, harmed by lightning, or blown up in a gas explosion. The comprehensive package is a bit more comprehensive, as it offers coverage for direct physical loss or damage related to most external causes.
Additional Or Optional Coverage
Yes, both the basic and comprehensive packages will ensure that you are protected in certain situations, but unfortunately, they will not protect you for every foreseeable and unforeseeable situation. Luckily, we can put you in touch with agents and brokers that offer additional coverage packages that can and will ensure you are protected to the fullest level possible. Some of these additional coverage packages include everything from loss of use or tool replacements cost.
- Loss of Use: Loss of use is a package that will come in handy when you are unable to use your farm equipment due to an insured event. For instance, if you experience a fire and that fire damages your equipment to the point where it will be out of commission for a week or two then this package will kick in and cover the loss of any wages that you might lose during your downtime. That being said, it should be noted that there is a limit with some of these packages. And, that limit can be anywhere from $1,000 to $5,000 daily. This coverage usually comes available with the comprehensive farm coverage, but can be added to the basic.
- Tool Replacement Cost: The tool replacement cost is pretty much the same type of coverage. The only difference is that it covers your tools rather than your equipment. However, one unique thing about this additional coverage is that it covers the cost of replacement tools. You are not being compensated for the actual life of the tool. For instance, if your tiller is damaged in a fire the package will pay to buy you new tiller rather than just compensating for your tiller. Simply put, you are going to end up with a new tool, whether yours was 5 or 10 years old.
- Barn And Other Building Insurance: Not only are your equipment and tools are important, but your buildings are important as well. Just look at how useful your barns and silos are. In fact, you probably couldn’t even operate successfully without these buildings. They provide a safe place for your equipment, materials, and produce. Protecting these buildings and everything inside them is just as important as protecting your equipment and tools. And, this is exactly why this type of coverage is essential for the modern farmer. This will cover any outdoor buildings and barns that are related to your farming business. This could include everything from barns to silos, garages, or even smaller tool sheds.
- Farm Liability Insurance: Unfortunately, your buildings, tools, and equipment aren’t the only things that you need to worry about. A farm is a big operation and usually takes more than one or two individuals to run. If you have an employee that injures himself or herself on the job, you are going to be liable for those damages. Can you afford to pay the worker’s lost wages and medical bills out of pocket? Probably not, and with farm liability protection coverage this is something that you will never have to worry about.
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Other types of coverages farmers often explore:
You can view some examples coverages offered to different type of farming businesses by going to this link.