Farm Machinery Insurance: Essential Facts & Explanations

Home Tips

As a farm owner, you’d invest in a lot of equipment to carry out your everyday tasks. Hence, acquiring farm machinery insurance to cover all of your vehicles and other farm equipment is essential to keeping a profitable farm operating smoothly. 

Knowing how your insurance works and where to get it is critical to maintaining a profitable farm. In this article, we will show you the most important facts about farm machinery and equipment insurance.

What Is Farm Machinery Insurance? 

Farm machinery or agricultural equipment insurance refers to any vehicles, devices, and farming equipment. Natural catastrophes, such as storms, or criminal activities, such as theft, might cause damage to any of this equipment.

The policyholder can select between blanket insurance covering all farming items or a specialized policy that allows the insured to choose which things are covered.

Because the protection, restrictions, and costs of farm plant, machine, and equipment cover vary by an insurance company, you can also ask farm insurance agents’ help in comparing coverage and pricing.

What Does Farm Machinery And Equipment Insurance Cover?

Tractors And Other Farming Vehicles Are Covered In This Insurance

  • Tractors.
  • Combine and forage harvesters.
  • Planters.
  • Sprayers.
  • Trucks and grass rakes.
  • Additional field gear.
  • Irrigation equipment.
  • Farm office machines.
  • Equipment and supplies

Farm Machinery Insurance Covers Losses And Damages.

  • Natural catastrophes such as windstorms, fire, lightning, hail, and thunder.
  • Towing and hitching-related damage.
  • Contact with the ground or the roadbed.
  • Glass coverage for cabs with no deductible.
  • Damage caused by a foreign item.
  • Borrowed equipment.
  • Tractors and other equipment that has been rented or leased.

Bear in mind that wear and tear on your agricultural equipment and machinery are unavoidable.

Farm Machinery Insurance Options

Blanket Coverage

Blanket coverage is equipment coverage that insures all of your farming private property inventory for a single price. The co-insurance policies are one of the most essential aspects of this plan.

Suppose you insure all of your personal farming property for the entire worth of your property. In that case, you’ll be covered if property prices change or if you add another property to your land, increasing its actual value.

Scheduled Coverage

Meanwhile, scheduled coverage allows you to select certain things to ensure and assign a specific level of coverage to each item. This is a fantastic method to tailor your insurance to your specific requirements, use, and budget. 

You can also get enough limitations for your higher-valued devices with scheduled coverage.

Additional Farming Machinery Insurance Coverage

Having agricultural insurance is essential to ensure that your entire project does not come to a halt because of a single unforeseen event.

Replacement Costs

  • Irrigation systems: Your crops require a lot of water. With this level of coverage, your irrigation system will not deteriorate and can be simply changed to keep your operations operating.
  • Farming equipment: This form of policy covers equipment that is under ten years old. Since it will impose co-insurance, we should cover this type of equipment for its total replacement cost.

Breakdown Of Agricultural Machinery

If you’ve had a pivot watering system, arcing might trigger an electrical failure in the electronic panel. This sort of insurance can assist cover the costs of getting your equipment back up and running.

Because the crops may perish, change the panel as soon as workable. Another example is if you possess a dairy-heating boiler that might malfunction if it overheats.

Rented Or Borrowed Farm Equipment

This Policy Safeguards Your Budget With Hired Farming Vehicle

This sort of assurance will help you secure the expenses of repairs if the farming machinery you hired or rented from others is damaged, and it can safeguard your budget from having to pay for them yourself.

Open Perils Coverage

This policy can safeguard you from rock ingestion, rat damage caused by wiring, and collapse owing to the weight of the building.

When Should You Insure Your Farm Machinery and Equipment? 

Time is so important. If your stuff isn’t insured, you’ll want to get it covered as soon as possible. If you’re going to add any additional heavy gear or equipment to make your farm become its best version, coverage will be determined by who still officially owns them.

It’s important to remember that you can’t insure what you do not own.  However, if the machinery or device is in transit, that’s a different story. 

A crucial conversation to the seller is to determine whose insurance will cover the item while it is still in transit and before delivering it to your farm.


Here are some frequently asked questions we have collected while researching this field.

1. Do I need an independent insurance agent?

It’s vital to have an independent insurance agent who has access to many insurance providers, allowing them to find the greatest coverage, convenience, and reasonable price. 

Independent insurance agents have access to many insurance providers, allowing them to find you the greatest coverage, convenience, and reasonable price. 

They’ll also be available to assist you in changing your insurance as your farm develops and your requirements vary, so you’re adequately covered without overpaying.

Based on my experience, most Australian farmers benefit from the Fast Machinery Insurance – Farm equipment regarding their economical Farm Equipment Breakdown Insurance. FMI will show you how agricultural machinery insurance may provide customized coverage for your investments and interests.

2. My major job is not farming. Will this influence my farm insurance policy?

You Can Benefit This Insurance Even When Your Major Is Not Farming

Yes! Although farm policies provide coverage choices not available with a homes policy, we can help you determine if farm assurance or a right endorsed homeowners’ policy is right for you.


We cannot deny that having farm machinery insurance is essential for farmers who own many agricultural types of equipment. Therefore, it’s necessary to understand how insurance works and when to get it if you want to run a productive farm. 

We hope this article is beneficial whenever you begin your agricultural business.