What will you do if you have an accident with your seeding equipment or 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 rental costs while your machinery is being repaired? Check your policy to make sure you have the coverage on your policy.
The Machinery Loss of Use Coverage will pay the rental cost of the replacement farm machinery if the damage to your equipment is covered by the insurance policy and if you can show that you need the replacement. It will not pay if you simply experience a breakdown and the coverage will not pay the full cost of custom work service but it may pay a portion.
In all cases the replacement has to be approved by the adjuster.
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 $2,000 per day rental coverage was enough. Today farm machinery rental rates are higher. Daily rentals reach $3,000.
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!