Should You Insure Your Farm Equipment

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Some farm equipment has been in the family for decades, others are brand new shiny tractors and attachments that are worth a fortune. Would it surprise you to know that both are equally important to insure?

In this article I’m going to show you why insurance is necessary and how you should go about working out what insurance you need.

Why Insurance May Be Necessary

Ask yourself one simple question: can you do your farm work without your farm machinery? Ask this of every piece of equipment you have.

Next think about how long it would take to replace the equipment. Is it as simple as ordering off Amazon for next day delivery or will you need to go through an arduous and expensive custom ordering process again?

And finally, do you have the money to replace your farming equipment while covering any losses from farm work that goes undone?

Consider the worst case scenarios and you’ll quickly understand why insurance is so important for your farm!

Is Insurance Available for Your Equipment?

As a business, you can insure pretty much all your vehicles and machinery with the right policy (I personally went to an insurance broker to get this sorted, as I don’t know how to do it myself) so you’re always covered.

You can get cover for things like:

  • Theft and deliberate vandalism
  • Breakdown recovery
  • Accidental damage

Check the policies. Some will pay out to cover the cost of losses and damage repair, while others will simply replace the machine itself. Also, check out the average claim time for each insurer, some may take months to pay out a claim, leaving your farm out of action for most of the season.

A very old piece of machinery might cost more to insure, simply because it’s more likely to break down. But if that piece of machinery is important to your farm, you have 2 real options: pay a lot of money in maintenance or pay a little in insurance each month. You just can’t risk it breaking down!

Examples of Equipment You’d Be Crazy Not to Insure!

There are some super crazy farming machines out there, here’s just a few of them that I think you’d be mad to leave uninsured:

The SPIRIT driverless tractor. Developed by ATC, they aimed to build a low cost driverless tractor using top of the line tech. When used right, you can do double the work by driving both your normal tractor and autonomous tractor at the same time. On large farms, having efficient methods of covering the fields is essential to meeting targets on time. I’d definitely insure my driverless tractor!

The Feed Pellet Mill. If you’re a livestock farmer, this piece of tech is absolutely essential to creating the right pellets to feed your animals. You’d be silly not to insure this piece of tech. Could your animals eat if it broke down? Of course, I’ve used the feed pellet mill before and I highly doubt it would ever break down, but you can never be too careful! You can read more about the feed pellet mill here.

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