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 occurring on or off of a covered location
  • Lost farm income arising from a covered breakdown
  • Additional costs to clean-up and dispose of hazardous substance when a covered breakdown results in contamination
  • Additional costs to limit loss and speed recovery
  • Loss value of spoiled products and materials due to breakdown to covered equipment
  • Extra expense to purchase replacement energy after a covered loss to electrical generating equipment including loss of utility credits and government renewable energy credits


Equipment breakdown covers risks standard farmowners policies don’t:

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


Equipment breakdown covers a wide range of equipment including stationary farm machinery, engines and motors and mobile farm implements and implement electronics. Examples of covered equipment:

  • Well 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, cooling and ventilation systems
  • Farm water heaters
  • Electrical distribution systems
  • Computers, GPS and electronic equipment for precision farming
  • Farm implements and external electronics used to operate implements while in operation
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 Income - HSB 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.