Will Farm Insurance Cover All My Equipment and Machinery?
Caeva O'Callaghan | December 11th, 2020
There’s a lot to think about when you have a farm. But do you have peace of mind knowing your machinery and equipment has cover?
Only if you have told your provider that you need insurance for it. You need to declare every piece of machinery and equipment you own on your farm insurance policy, otherwise you won’t get compensation if the worst should happen.
Farm equipment and machinery can get very costly. But, this shouldn’t mean you should under-insure your possessions to keep your premium down. You’ll only end up paying the price later on.
In this article, we’ll cover questions like:
- Is my farm equipment covered under my contents policy?
- How do I insure my farm machinery?
- Do I need car insurance for my tractor?
When you get a quote from your insurer, you need to provide either a total sum insured or a list of the equipment and machinery you own: ideally, both.
What are the risks to farm machinery?
No matter if you farm livestock or arable land, you need machinery to do so. But farm machinery and equipment are subject to a wide array of risks including fire and flood. From tractors, combine harvesters, balers and wrappers to quad bikes and mowers, you need to make sure all the equipment vital to your business has cover.
Theft is also a big risk to this kind of equipment. Farm machinery is high value and visible to thieves. Just last year, machinery dealers and farmers in Laois, Meath and Wexford were the target of raids. In these raids criminals got hold of over 20 John Deere tractors, combines and harvesters within a 48-hour period. In a 2019 survey by the Central Statistics Office, over a fifth (21%) of farm-owning respondents said that a crime had been committed against the farm in the past year. The crime most frequently reported was trespassing (18% of respondents). However, the next highest category of crime was theft of farm machinery (2% of respondents).
Farm machinery can also suffer damage due to vandalism, storms and other risks.
What about insuring Farm vehicles?
Some of your machinery, such as tractors and ATV’s, might be driven on a public road. If this is the case, then your tractor, forklift, quad bike or other vehicle will need to have Third Party Only insurance. This is the minimum cover you need to drive on the roads in Ireland.
Like all vehicles which are to be driven on the road, quads are subject to the Road Traffic Act. This means you must adhere to the rules of the road when you’re driving on a public highway.
Even though Third Party Only is the minimum cover you need to have, as with any car or other roadworthy vehicle it’s always a good idea to get extra coverage for peace of mind. Tractor insurance – be it third party, third party fire and theft or comprehensive – is available from many different providers. You can also use this cover to insure any implements you attach to your tractor.
Agricultural vehicle insurance policies will be available to you which can cover multiple farm vehicles under one policy. Like an employer’s fleet policy, this means all your vehicles have cover for peace of mind. Some providers even offer multi-sectional discounts. If you own other vehicles such as private cars, commercial vehicles, ATV and quad bikes, it may be possible to include these within your agricultural vehicle policy.
Horseboxes and other equipment
Normally when you buy agricultural vehicle insurance, your provider will include attachments as standard. This means the cover will automatically apply to trailers. This includes horseboxes, tractor implements and other attachments, protecting you against accidental damage and theft. These items will also have cover when you detach them from your vehicle. Many policies will have an inner limit, so it is important to check with an adviser that you have adequate cover.