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Farm equipment insurance - tractor & header insurance

Farm Insurance - Making sure your Farm Equipment is adequately covered
Your farm equipment is valuable and essential to running and operating your farm. Can you imagine being without some of your most useful equipment? How would your farm function and what would the impact be on your productivity?

Maintaining your farm equipment might be a requirement of your farm Insurance Policy
Harvesting equipment is expensive and can be high-risk due to its ability to catch fire. Headers, for example, can be valued at $300k for a base model and increase in value from there. WIth such valuable and expensive farm equipment you want to know that your insurance will cover you for any events, such as a header fire, that might occur.

Given the value of farm equipment, some insurers are more strict around how you maintain your farm equipment. Ensuring that fire fighting equipment is onboard your header can be mandatory. In addition, some farmers may also place a ute or farm vehicle close by, when using a header, with a water pump or additional fire equipment.

Also, some insurers require that your farm equipment is cleaned regularly and that you maintain proper and timely maintenance of your farm machinery.

It is worth saying that if the conditions are not suitable that you should consider whether you really need to use your farm equipment. For example, be aware of the potential risks of using your header when conditions are hot and windy.

Helpful questions to ask to check your Farm Equipment is adequately insured
1: How does the replacement value for your equipment differ to the sum insured/market value listed on your farm equipment insurance policy. At claim settlement time you might not be able to replace your equipment and need to find additional funds to purchase the replacement equipment. Don't be left short.

2: If your farm machinery is financed, you need to align your insurance with the terms and conditions of your finance so that you can be covered if an event occurs.

3: It is good practice to check your insurance annually to ensure that the sum insured & market values on your insurance policies match the replacement costs. See question 1...

4: If you do contract harvesting, you need to disclose this activity to your insurer to see if it is covered under your standard policy or if you need to add in coverage for this activity.

To undertake a review of your farm insurance, please get in touch and I'd be more than happy to be of assistance.
To undertake a review of your farm insurance, please get in touch and I'd be more than happy to be of assistance.
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.


Abbie Wilson, National Insurance Brokers, ABN 22165146789, AFSL 233750

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