Agricultural Equipment Insurance

What Does Agricultural Equipment Insurance Mean?

Agricultural equipment insurance is a policy that covers farming tools and machinery in the event of damage. The tools and machinery must be essential for the operation of the farming business. The policyholder has the option to select specific items to be covered or to insure all farming equipment.

Insuranceopedia Explains Agricultural Equipment Insurance

This is also known as farming equipment insurance.

Agricultural equipment refers to any device, tool, machinery, or equipment used in farming. This includes, but is not limited to, tractors, sprayers, mowers, conveyor belts, and farm trucks. Many farm operations also pick up tool insurance to extend coverage to smaller hand tools and portable gear that fall outside the main equipment list.

Damage to this equipment may result from natural disasters, such as storms, or criminal acts, such as theft.

The policyholder can choose between a blanket policy, which covers all equipment, or a specific policy, where the insured selects the items to be covered. Farmers worried about losses from a bad harvest in addition to equipment damage often pair this with revenue protection crop insurance, which covers income shortfalls from low yields or price drops.