Farm Equipment Coverage: Are Your Tractors and Implements Fully Protected?

Farm equipment isn’t just expensive—it’s essential. In Arkansas, where farms range from small family-owned plots to large-scale operations, equipment like tractors, combines, balers, and planters often represent a major investment. But are they properly insured?

 

What’s Covered Under Farm Equipment Insurance?

Most farm policies include some form of coverage for equipment, but not all policies are created equal. Equipment insurance typically covers loss or damage due to:

• Fire, theft, or vandalism

• Natural disasters like windstorms, hail, or tornadoes

• Mechanical breakdown (optional endorsement in many cases)

• Accidental damage during operation or transport

However, the extent of that coverage depends on whether your policy uses scheduled or blanket equipment coverage. Scheduled coverage lists individual pieces of equipment with assigned values. Blanket coverage pools them together under a total limit. Both have their pros and cons, but it’s critical to update your list regularly if you’re using scheduled coverage.

 

Common Coverage Gaps to Watch For

• Unlisted Equipment: If it’s not scheduled, it may not be covered. That includes new purchases or even borrowed machinery.

• Off-Premises Use: Some policies limit coverage to use on your farm. If you transport or lease equipment, double-check the terms.

• Wear and Tear: Normal breakdowns or maintenance issues aren’t typically covered, though some policies offer endorsements for mechanical failure.

Tips to Make Sure You're Covered

1. Keep an Updated Inventory: List each piece of equipment, its value, and the date it was purchased.

2. Review Annually: Make insurance reviews part of your year-end planning, especially before planting or harvest seasons.

3. Ask About Replacement Cost vs. Actual Cash Value: Some policies pay based on the depreciated value, which might not be enough to replace damaged equipment.

Your farm equipment keeps your operation running. Make sure your policy is working just as hard to protect it.