Insurance for contractor farm machinery

Insurance for contractor farm machinery

Insuring contractor farm machinery in Australia can be a challenging task, particularly due to the high risk of fire. As an agricultural country, Australia is prone to bushfires, which can destroy farms and their equipment. According to the Australian Institute of Criminology, in 2016-17, 21% of all reported agricultural-related thefts involved machinery, and the highest number of claims were due to fire damage.

Many insurance companies are reluctant to cover farm machinery because of the high level of risk. The cost of replacing expensive machinery can be significant, and the damage caused by fires can be extensive. This makes it essential to ensure that the insurance policy covers all possible damages, including fire damage.

Moreover, some policies may have limitations and exclusions that can make it difficult to get the right coverage. For example, some policies may only cover fire damage caused by a specific type of fire, such as electrical or lightning. Therefore, it is essential to understand the policy terms and conditions to ensure that the farm machinery is adequately insured against fire risks.

In summary, insuring contractor farm machinery in Australia can be a challenging task, primarily due to the high risk of fire. However, with the right policy and an understanding of the terms and conditions, farmers can protect their machinery and livelihood from the significant financial impact of fire damage.