Preheader

 

Get A Quote Client Portal Payments Contact Home Page
 


Auto Home Business Health Life



Borrowed Farm Equipment

Farming is equipment intensive and much of the equipment needed for various tasks are complicated and expensive. Most equipment is used with enough frequency that they are purchased and fully owned. However, farmers often have to preform jobs or have need of certain equipment on an infrequent or for a single need. In these instances, there’s no financial justification for having such equipment available on a full-time basis. On other occasions, a farmer may have equipment that is unavailable because of scheduled maintenance or repairs. In other words, situations come up when a farmer makes use of equipment borrowed from another party.

Fortunately, in most instances of using borrowed equipment, nothing goes wrong; it is simply borrowed, used, and returned. However, what happens when something does go wrong? Even if you have an insurance policy that covers farm equipment, it may not cover borrowed equipment or, when it does provide coverage, it could be only for a token amount. If you borrow and substantially damage a tractor or harvester, your neighbor is not going to accept an excuse that your policy either excludes coverage or only makes a grossly insufficient amount of protection available. If the equipment owner has coverage for that equipment, there is the common threat that, after their insurance company makes payment, the insurer could look to you for reimbursement.

Besides the issue of being responsible for damage to another party’s property, there is a separate liability exposure. Many policies that cover owned farm equipment exclude losses for borrowed equipment. Such exclusions can be quite broad including situations involving equipment that’s borrowed, rented or which is merely in your possession.

In many situations it makes perfect sense to use equipment that you don’t own. However, since such use comes with the danger of both property and liability losses, be sure that your policy provides you with the right kind and the right amount of protection. Most companies that provide farm equipment coverage have coverage options that you should discuss with an insurance professional.

©The Rough Notes Company, Inc.

Frost Insurance Agency
Holgate Office: 419-264-2051
Napoleon Office: 419-592-4476

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
View Our Latest Insurance News
more...
  Customized bike?
Make sure you have the proper coverage.     
                

more...

Home
About Us
Get A Quote
Customer Service
Make A Payment
Contact Us
Auto Insurance
Home Insurance
Business Insurance
Farmowners Insurance
Life Insurance
Health Insurance
Napoleon Office
PO Box 350
Napoleon, OH 43545
419.592.4476
Holgate Office
PO Box 367
Holgate OH, 43527
419.264.2051

Email us at frost@frostins.com
How Can We Help You?
or call us at
Napoleon Office: 419.592.4476
Holgate Office: 419.264.2051
Get A Quote My Policy Location Blog RSS Feed Blog RSS Feed