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Do Your Farm Accounts Have "Extra Expense" Coverage?

As the days get shorter, the window of opportunity for farmers to harvest their crops narrows. Farms are larger, equipment is larger and the need...
October 27, 2010

As the days get shorter, the window of opportunity for farmers to harvest their crops narrows. Farms are larger, equipment is larger and the need for broader coverage on the farm increases. For example when a farmer loses a combine to fire, collision, rock ingestion or some other covered peril, in the middle of this window, does he have time to wait for an adjuster, a repairman or parts? There are only a limited number of thermo units and heating hours to complete a harvest so the farmer needs insurance coverage for "extra expense" so that he can be operational within hours!! He needs to rent a machine within 24 hours, have it delivered, fueled and ready to go. There are costs to truck the equipment to the field in addition to the $200 per hour rental fee. There is an additional insurance risk and cost to get the 'temporary' unit covered. Does your FO policy provide this cover with or without endorsement? Renting a $300,000 combine is not the same risk as borrowing the neighbor's. Bottom line: review your farm risk exposures.