Is your equipment protected?

Google “equipment breakdown” and you will see lists of various insurance offers and companies who offer many types of breakdown coverages.  However it is hard to find a site that explains what this type of coverage is or why people need it.

Equipment breakdown is as vital as property coverage for your small or large farms and all commercial business.  Coverages are relatively inexpensive and provides needed protection for today’s most common farm and home equipment and causes of breakdown.  On today’s farms, hi-tech equipment runs all types of operations more than ever.  Overall farm exposures have evolved, and computer equipment plays an important role in business production.

Many people do not know that most farmowners policies exclude coverage for equipment breakdown. Many farmers also mistakenly believe the cost is prohibitive.  The reality is the cost is very reasonable and farmers and commercial agribusiness customers need this coverage the most! Their businesses cannot survive with any loss in power or key equipment.  Here are some examples of the types of common risk covered:

  • Mechanical breakdown
  • Electrical short circuit
  • Utility service interruption
  • Business computer breakdown and data restoration
  • Pressure vessel bulging, cracking, collapse

Equipment breakdown can be a stand-alone policy or built right into your farmowners policy.  It depends on the type of farm business and equipment owned. Costs to fix, repair and replace all farm machinery rise each year. Please do your business a favor and find out more about this important coverage.  Reach out today to your independent agent to get a quote.

Do you know the leading cause of equipment breakdown losses?  Electrical surges.