What do you do when you have an accident with your tractor and/or air seeder and it is damaged? 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 rent a replacement. Does your insurance policy pay for these extra rental costs? Your farm policy could pay for these costs 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 a replacement and the damage to your equipment is covered by the insurance policy.
In a number of cases I 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 a maximum $1,000 a day rental coverage to a maximum of $10,000 was enough coverage. Today farm machinery rental rates are considerably higher. Farmers are telling me that they can easily exceed $1,500 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!