Farm Equipment Insurance

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Farm equipment breakdown insurance

Farmowners Equipment Breakdown from Hartford Steam Boiler

Equipment is more indispensable than ever to farms. Yet many farms have zero insurance protection when equipment breaks down. Now HSB is making farm equipment breakdown insurance easier to access and more affordable for farm owners by helping other insurance companies automatically package equipment breakdown coverage in their farmowners policies.

Changing Equipment Risks

Farms have changed, so have the risks. Farming has always been an equipment-intensive business. But, with the pressure on for greater output and efficiency, today’s farmers work equipment harder and longer, increasing the risk for breakdown.  In addition, modern farms are using precision farming techniques with sophisticated systems that are sensitive and prone to breakdown.

Coverage Summary

Farmowners equipment breakdown coverage pays for losses such as:

  • Direct physical damage to covered equipment
  • Lost farm income arising from a covered breakdown
  • Expenses to limit loss and speed recovery
  • Loss value of spoiled products and materials due to breakdown

Equipment breakdown covers risks standard farmowners policies don’t:

  • Mechanical breakdown
  • Electrical short circuits
  • Centrifugal force
  • Boiler overheating, cracking and bulging
  • Pressure vessel bulging cracking and collapse

Equipment breakdown covers a wide range of equipment:

  • Pumps for irrigation and farm animal water supply
  • Generators to power farm machinery and for back-up power
  • Farm refrigeration units
  • Boilers and pressure vessels
  • Heating and cooling systems
  • Farm water heaters
  • Mechanical equipment
  • Electrical distribution systems
  • Heating and cooling systems
  • Computers and electronic equipment
  • Stationary farm machinery, engines and motors
Embedded Coverage and Services

HSB offers customized farm equipment breakdown insurance and services designed to be integrated within insurers’ farmowners products. By insuring a portfolio of business we make equipment breakdown coverage more affordable than individually underwritten policies. HSB has helped more than 250 insurers successfully integrate equipment breakdown coverage in their commercial package products. Our approach offers the following advantages to farm insurers:

  • Product Differentiation - HSB’s customized farm equipment breakdown insurance product can differentiate your farmowners' product from competitors.
  • Risk Free IncomeHSB fully reinsures equipment breakdown loss as stated in the treaty. So the ceding commission farm insurers retain is risk free income.
  • Affordable Premiums - By including equipment breakdown coverage as a standard element in farmowners' policies, farm insurers can broaden coverage while keeping premiums competitive.
  • Simplicity and Economy - Automatically including equipment breakdown coverage eliminates the need for individual account transactions and reduces handling costs for insurers and their agents.
  • Valued Coverage - Modern farms have a substantial investment in equipment and their income is very dependent upon it. Including equipment breakdown coverage is a valued addition that meets farm owners changing needs.
  • Full Service Support - HSB offers a full complement of services so insurers don’t need to add expense or staff to provide equipment breakdown. Services include: assistance in developing customized policy forms and filing packages, rating mechanisms and consultations, underwriting, claims handling, jurisdictional inspections, marketing materials, sales support and training, and systems consultation.


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This publication is available exclusively to Munich Re clients. Please contact your Client Manager.