Having a solid farm equipment insurance policy can ensure that you don’t end up in an unfavorable financial situation where your business is on the line. In this guide, we’re going to explore what you need to know about farm machinery insurance for tractors, trucks, harvesters and other types of farm equipment, how much does it cost, and more.
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Agriculture tractor insurance is a type of tailored agricultural machinery insurance for tractors. It is useful for farms or farmers using the following types of tractors that hasten work:
Implement carrier tractors
Orchard type tractors
Row crop tractors
Utility tractors
Garden tractors
Typical insurance for farm tractors consists of different business insurance you can decide to have or not. Let’s talk about the inclusions in the next section.
Like with heavy equipment insurance and heavy machinery insurance, exactly what is covered by your policy depends on the kind of business insurance you choose to include. Commonly, a typical farm tractor insurance offers general liability insurance, auto liability insurance, and more.
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Keep in mind that this isn’t the kind of general liability coverage that a business needs but rather a commercial vehicle insurance coverage. The function of farm tractor auto liability insurance is to:
Cover the medical expenses of injured third parties or reimburse the value of the damaged property if your farm tractor causes an accident while running on a public highway
Cover attorney fees, compensatory payments, administrative costs, and other legal expenses if someone decides to take legal action against the accident your farm tractor caused
Auto liability insurance for farm tractors is offered together with collision insurance and comprehensive insurance. Collision insurance will cover your tractor’s parts repair or replacement if it becomes damaged after colliding with an object or vehicle while running on the highway. On the other hand, comprehensive physical damage coverage will cover parts repair or replacement if your farm tractor incurs damage due to theft, vandalism, fire, and other covered perils.
We almost forgot but you can also get personal accident coverage and bundle it with your farm tractor auto liability insurance. Personal accident coverage will pay for medical bills if you get injured upon causing a vehicular accident with your tractor or getting involved in one. If another person is driving your tractor, then he or she is covered too.
Specific types of farm tractors can be attached with a trailer and are useful for hauling goods. If you own one, consider getting goods in transit insurance. Goods in transit insurance will reimburse your losses if the products loaded in your farm tractor’s trailer become lost or damaged during the trip.
Frequent use will eventually result in the occasional breakdown of your farm tractor. This is why tailored agricultural tractor insurance offers equipment breakdown insurance. Equipment breakdown insurance covers parts repair or replacement if your farm tractor incurs damage while being used on the farm. This covers battery replacement, wiring repair, GPS repair, and many more.
You can endorse trailer and implement coverage to farm tractor equipment breakdown insurance. As the name implies, trailer and implements coverage will reimburse losses if trailers and other farm tractor attachments become lost or damaged due to frequent use, theft, vandalism, and other covered perils.
By the way, if your farm tractor is stolen or becomes totaled, equipment breakdown insurance can replace your farm tractor with a new one provided that it was less than one - three years old. Ask your insurance company if its equipment breakdown insurance does this.
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Note that farm tractor auto liability insurance will only provide coverage if your farm tractor injured people by causing an accident while running on the highway. If your farm tractor caused injuries to third parties while being used on the farm, then you need to turn to another business insurance for protection - general liability insurance. You’ll find this useful in the following situations:
You accidentally run over someone’s foot while using a farm tractor in the farm or any other work locations
You backed on someone while using a farm tractor on the farm or any other work locations
You damaged someone’s property while using a farm tractor on the farm or any other work locations
So what does general liability insurance cover? General liability insurance covers the following on your behalf:
Third-party personal injuries - When you injured someone while using a tractor on the farm or any other place except highways, general liability insurance will cover medical bills if the person files a claim
Third-party property damage - Farm tractors are solid machines that can easily destroy or damage someone’s property. General liability insurance for farm tractors reimburses the owner of a damaged property on your behalf
Legal defense - Personal injury claims and property damage claims are wrapped in court and general liability insurance will pay for attorney fees, compensatory payments, administrative costs, and other legal expenses on your behalf
Workers' compensation insurance is useful if you have one or more employees operating multiple tractors on the farm. This insurance protects your business against the hefty expenses of work-related accidents and illnesses. By having workers comp insurance, you can cover the following:
Medical treatment/procedure - Overturning and being backed on are some incidents that will inflict injuries to your farm tractor’s operator. In connection, workers' compensation insurance will shoulder costs if the operator’s injuries require a medical treatment/procedure
Hospitalization - Injuries such as fractures, concussions, and contusions will end with your farm tractor operator staying in the hospital for days, weeks, or months. Workers compensation insurance will help with this by paying for the hospital bills on your behalf
Medication - Workers' compensation insurance will cover the cost of antibiotics, anti-inflammatory tablets, and other medicines your farm tractor operator needs to prevent an injury from worsening
Lost income compensation - Workers' compensation insurance will supplement lost income if your farm tractor operator can’t work for a while. Lost income compensation is implemented as a weekly allowance equal to two-thirds of the average weekly wage
Death benefits - If your farm tractor operator dies because of a work-related accident or illness, workers compensation insurance will take care of funeral expenses and will provide cash aid to dependents
Farm tractor accidents are very common and it’s estimated that 130 die annually because of them. In fact, there are a lot of incident reports available online. Here are some examples from the Occupational Safety and Health Administration:
| Incident Date | What Happened? |
|---|---|
| October 18, 2017 | An employee was working for a crop harvesting firm and was using a tractor owned by the employer. While driving, the tractor rolled over on an embankment and fell 25 feet off from the main access road. This resulted in the employee’s instant death |
| May 12, 2008 | A dairy farm employee - a tractor operator - was crossing the public road to go to the other side of the farm. While crossing, a pickup truck came and struck the tractor in question. The operator was thrown off the tractor and struck by the same pickup truck. This resulted in chest fractures that required intensive medical care |
| February 17, 2017 | An employee was operating a Kubota Tractor with an attached brush trimmer. While being used, the tractor ran over another employee. This employee sustained a broken nose, a laceration to the left eye and left side of his face. The employee was hospitalized and treated for his injuries |
Farm truck insurance is offered as commercial auto insurance. Commercial auto insurance offers the following protection for your farm truck:
Auto liability coverage - Covers medical expenses for injured third parties and reimbursement for damaged property if your farm truck causes an accident
Physical damage coverage - Pays for the parts repair or replacement of your farm truck if it incurred damage due to an act of God, malicious mischief, or collision
MedPay/personal injury protection - MedPay and personal injury protection both cover the medical expenses of the driver and passengers who got injured after your farm truck caused an accident or got involved in an accident. But note that there’s a subtle difference between the two. Personal injury protection is more comprehensive because it covers medical expenses, after-hospital visits, lost income compensation, and more. MedPay, in contrast, only covers funeral and medical expenses
Note: you might also want to get non trucking liability insurance or bobtail insurance for your farm truck.
There’s also tailored commercial insurance available if you’re renting out farm tractors and other farm equipment.. Farm tractor and farm equipment insurance coverage included are general liability insurance, commercial property insurance, and workers’ compensation insurance.
Just like general liability insurance for farm tractor owners, general liability insurance for farm tractor rental businesses covers third-party bodily injuries, third-party property damage, and legal defense costs. But note that it’s a bit different because it features optional policies such as:
Advertising injury coverage - If your farm tractor rental business faces a claim for slander, libel, defamation, copyright infringement and other types of reputational or advertising harm, advertising injury coverage will cover legal expenses
Products and completed operations coverage - Products and completed operations coverage will provide protection if a tractor being rented causes personal injuries or property damage to a client and other third parties
Commercial property insurance functions to cover the commercial space you’re using to store the rental farm tractors. Its function is to:
Reimburse losses if the commercial space you’re using is destroyed by fire or extreme weather
Reimburse losses if the structures of the commercial space of your farm tractor and equipment rental business incur damage due to fire, theft, vandalism, extreme weather, and other covered perils
Note that commercial property insurance for farm tractor rental business includes stocks and contents coverage. Stocks and contents coverage allows you to recover losses if the installations inside and around your business’s commercial space as well as the documents and other valuable items inside become lost or damaged due to fire, theft, vandalism, and other covered perils.
The average farm tractor insurance cost is about $750 per month or $8,500 per year for a $1 million general liability insurance.
However, there are several factors that go into determining how much your farm tractor insurance will cost. First and foremost, the tractor model that you’re trying to insure and the number of tractors you have on your farm will have the biggest impact on your insurance premiums.
Your rates will also be dependent on your farm’s safety record. If you have a history of accidents on your farm, then you will have a much higher rate because of the significant risk that the carrier is taking when they offer you agricultural equipment insurance.
You’ll also have to work out how high your deductible is, as a higher deductible will cut down on the cost of your insurance premium because it lessens the chances of you using the policy for more minor repairs. Taking out a higher deductible is like gambling that you won’t need to use your insurance policy.
As we’ve discussed, many tractor insurance policies are only available as part of a blanket farm insurance policy, and this will understandably result in much higher premiums because of the wider range of things that are covered by a blanket policy.
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| CoverWallet | $325 | $3,900 | Farm tractor and farm equipment insurance quotes comparison online |
| Progressive | $350 | $4,200 | Equipment breakdown insurance for farm tractors |
| Geico | $365 | $4,380 | Commercial auto insurance for farm tractors and farm trucks |
| Farm Bureau | $390 | $4,680 | Custom insurance for farm tractors |
| American Family | $415 | $4,980 | Tailored insurance for new farm tractors and other equipment |
| Shelter | $450 | $5,400 | Farm equipment insurance with comprehensive equipment breakdown coverage for farm tractors |
| Nationwide | $750 | $9,000 | Tractor insurance that covers rented tractors |
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If you’re looking for agriculture tractor insurance online, then you’ll need to know a few things about the insurance carriers that offer policies covering these vehicles. Each of the following companies offers its own form of farm tractor insurance, and they each have their own areas of specialization. Read the reviews below to know about the pros, cons, and pricing for a $1 million general liability coverage.
Cancel a policy anytime
Get insured online
Stable rates
Responsive customer support
Not an insurance company but an insurance broker
CoverWallet is a sister company of AON and an insurance broker with a quotes comparison platform you can use to find insurance companies offering tailored insurance for farm tractors, trucks, and other equipment. What makes this company good is that you can get quotes showing pricing and offers by only providing basic customer information. Also, CoverWallet allows you to immediately buy any insurance quotes received.
Best for:Farm tractor and farm equipment insurance quotes comparison online
Average cost: $325
Our rating: 10/10
Offers equipment breakdown coverage for farm tractors
Doesn’t offer auto liability insurance and other commercial auto insurance coverages for farm tractors
There are a few different kinds of vehicles that Progressive does not insure because of their lack of specialization in that particular area. Unfortunately, farming tractors are included in the list of vehicles that Progressive does not offer commercial auto insurance for, so you will be unable to get a package deal on your tractor if you already work with Progressive.
Best for: Equipment breakdown insurance for farm tractors
Average cost: $350
Our rating: 9/10
Has a lot of discounts in its commercial auto insurance for farm tractors and trucks
Cons
Some business insurance products are underwritten by other carriers
While Geico doesn’t outright refuse to insure farm tractors unlike Progressive, they tend to handle tractors on a case by case basis. This company primarily offers commercial auto insurance for farm tractors and trucks with a plethora of discounts - new vehicle, safe driver, and more.
Best for: Commercial auto insurance for farm tractors and farm trucks
Average cost: $365
Our rating: 8/10
Has knowledgeable insurance agents that help you find get the best coverage for your farm tractor
Customers report that some insurance agents are rude
Trusted Choice is a platform of independent insurance agents who work with you to find the best farm tractor insurance rates. Working with a company like Trusted Choice is often a good idea if you’re looking for niche insurance like agricultural equipment coverage because they help remove a lot of guessworks when it comes to finding the right coverage.
Best for: Farm tractor insurance company from local agents
Average cost: $380
Our rating: 5/10
Offer custom and tailored insurance for farm tractors
Not accredited by BBB
Farm Bureau Financial Services offers policies that are specifically tailored for the farmers buying them. They will go over how you use your farm tractor with you and draw up a policy that excludes everything you don’t need. This makes them an excellent choice for farmers looking to save money.
Best for: Custom insurance for farm tractors
Average cost: $390
Our rating: 6/10
Tailored insurance for the latest farm tractors and other equipment
Customer support is slow to respond
American Family is one of the best companies to work with if you’re trying to ensure modern farming equipment and tractors. This is because the company typically works with gear that’s newly bought and they offer a wide range of add-ons for their farming equipment coverage so that you’re fully protected.
Best for: Tailored insurance for new farm tractors and other equipment
Average cost: $415
Our rating: 5/10
Comprehensive equipment breakdown coverage for farm tractors
Insures tractors under its tailored farm equipment insurance
Doesn’t underwrite tailored farm tractor insurance
Shelter Insurance knows what they’re doing when it comes to insuring tractors, and this is made obvious by how they cover relatively specific occurrences like lightning strikes and broken cabin glass. Unfortunately, Shelter Insurance won’t cover rented farming equipment, so you’ll have to own your tractor.
Best for: Farm equipment insurance with comprehensive equipment breakdown coverage for farm tractors
Average cost: $450
Our rating: 4/10
Covers rented tractors
Has an AgriChoice program for farms
Slow to handle claims
Nationwide offers some of the most versatile tractor insurance on the market, and they will cover a wide range of vehicles, including rented tractors. Unfortunately, Nationwide doesn’t offer commercial auto insurance for tractors, but they are instead included in their AgriChoice insurance program for farms.
Best for: Tractor insurance that covers rented tractors
Average cost: $750
Our rating: 3/10
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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