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Types of Tractor and Agricultural Insurance: Which One for You?

You may want to know the types of tractor and agricultural insurance if you want to dwell more into the sector. After all, the farming equipment would be one of the major important investments you make. In some cases, it is probably the biggest investment you have ever made. If you want to protect your investment, you need to learn about the various insurance coverage that may be important for you.

Important Aspects 

You need to remember that being a farmer means that you will be the main producer that is responsible for everything. It is not an easy task but it is actually manageable if you know how to arrange everything. As the main producer, you will have to deal with many unpredictable factors and elements. You need to be prepared for damage, property loss, demand downturn, harvest impairment, fluctuation, market price, and weather. Insurance can reduce and eliminate some of the most severe problems that may happen to the producers.

See also: How much tractor insurance prices?

Important Coverage

When it comes to types of tractor and agricultural insurance, there are some crucial types to cover, such as:
  • Farm property. You need to protect your equipment and buildings from damage or loss. After all, it is super important to the ongoing operation of the farm. In some agents, the coverage is more than equipment and buildings cover as it also protects the family home. 
  • Liability. It will protect you against claims for personal damage or injury to the property because of your farming operation. It includes produce sold or contract farming activities from the farm. 
  • Farm machinery. Keep in mind that machinery is expensive. Damage or loss will result in significant economic condition. Whether you have the old and passed-down equipment or the most sophisticated and advanced equipment (such as the drones), make sure that you cover it. 

Tailor Your Insurance Needs

When we are talking about farming machines, there are many heavy and expensive machines to think about, such as balers, sprayers, loaders, skid steers, combines, tractors, and so much more. Those machines are the heart of the operation. Without them, it would take you long to do everything – resulting in your operation being hindered and delayed.

See also: Benefits of Agriculture Insurances

Tractor Insurance

For tractor insurance, there are 3 main levels:

  • TPO (Third Party Only) that doesn’t cover damage or loss to your tractor, but it protects you against people making claims on you.
  • TPFT (Third Party Fire and Theft) that includes claim from the third parties. It also includes the claim for your vehicle loss and damage claims as the result of theft or fire
  • Comprehensive cover that includes everything under TPFT for your vehicle in the event of loss or damage to vandalism or vandalism
The insurance covers the tractors, accessories, and also trailers – even include vintage tractors. You also need to differentiate agriculture vehicle insurance and agricultural insurance. In agricultural insurance, it covers all kinds of grain in-storage, crops, and other kinds of agricultural produce. In agricultural vehicle insurance it covers the vehicles you use in agriculture, such as combine harvesters and tractors.

If you want to learn more about the types of tractor and agricultural insurance, you’d better consult your insurance agents.