What do you do when you have an accident with your tractor or air seeder? What if your combine is damaged by a rock or it catches on fire. You cannot afford to be without any of these pieces of machinery so you will rent a replacement. Does your insurance policy pay for these extra rental costs while your machinery is being repaired? Your farm policy could pay for the rental charges but you need to make sure you have the coverage on your policy. The Machinery Loss of Use Coverage will pay for the rental costs of the replacement farm machinery if you can show that you need the replacement and if the damage to your equipment is covered by the insurance policy. It will not pay if you simply experienced a breakdown. It will not pay the full cost of custom work but may pay a portion. You have to discuss this with the insurance adjustor prior to hiring.
In a number of cases we have seen the Loss of Use claim be larger than the Machinery claim.
You also need to make sure you have enough coverage. It used to be that $1,000 a day rental coverage was enough. Today farm machinery rental rates are considerably higher. Farmers are telling me that they can easily reach $2,000 in a day. For a very minimal difference in cost you should consider insuring at the higher level.
Be sure to seek advice and purchase insurance from those who understand your business!