You have your farm machinery insured and you decide to do some custom work for others. Did you know that the farm policy is for farmers to do their own farm work and not for farmers to do farm work for others.
There are very clear lines drawn between personal, farm and commercial business. All risks are different and coverage does not automatically apply from one scenario to the other.
There are three main areas of coverage that need to be considered before you go ahead and do any Custom Work. They are Machinery, Machinery Loss of Use and Legal Liability.
Depending on what type of work you are going to do, your existing farm policy may be changed to provide coverage for the custom work. However you may have to change insurance company, for any number of different reasons or you may need to have an entirely separate commercial policy issued.
It costs nothing to ask questions upfront. It may cost a lot if you don’t.
Be sure to seek advice and purchase insurance from those who understand your business!