Tractor & Agricultural Vehicle Insurance

Question

There’s much talk of the rising costs in farming. For example, inputs, machinery, and insurance costs all seem to be on the increase. As a farmer, I want to tidy things up and save where I can. I have read your advice on reviewing buildings sums insured and maintenance plans but is there anything I should be doing to review farm machinery insurance cover?

Answer

As insurance brokers for thousands of farms and farmers across the UK, we’re very aware of the rising costs the agriculture sector faces.

As you suggest, as well as reviewing buildings sums insured and maintenance plans, there are other ways you to get the best from your farm insurances, including the best solution for your machinery.

It’s worth saying at the outset that you should avoid removing insurance covers that leave your farming business exposed, but fine tuning them will help you save money. This means making sure the machinery, the sum insured, and the liabilities showing on your schedule is a true reflection of what you have. Make sure it’s enough, but there’s little point in covering farm machinery that has been sold, replaced, or wouldn’t be claimed for.

In addition to improving accuracy, proactive management of risks and plans to prevent losses in the first instance help show your farm in the best light possible to insurers, who themselves are facing larger and more frequent claims and as a result are becoming more risk averse. Evidence of risk management, maintenance programmes, sound farm investment, and risk assessment will help you obtaining competitive cover now and future proof the business moving forward. It can also help with settling claims effectively and efficiently.

Maintenance and inspections

For some farmers, now is the time to tidy up the farm and tackle some much-needed maintenance. Whether you’re in dairy, livestock, arable, or crop farming, machinery, tools, and equipment should be part of your review list, as is ensuring everything is safely and securely stored, well maintained, and anyone who is to use it, is appropriately trained and licensed. If you have additional security measures like locked gates, CCTV, or trackers, these will all be seen as positives for potential insurers.

This is also a good opportunity to ensure you are up to date with any farm inspections. There are several good reasons to do so, not least of all being compliant with government regulations surrounding agriculture and keeping everyone safe.

The Health & Safety Executive (HSE) website includes a list of what should be inspected and how often. The inspection itself can be undertaken by anyone who has enough knowledge and experience of the equipment to know what to look at. The HSE defines a ‘Competent Person’ as “someone who has the necessary skills, experience, and knowledge to manage health and safety”. However, you can also purchase inspection services from your broker or insurer for a reasonable annual cost and let them complete the farm inspections for you.

Regular and documented maintenance and inspections  are not only a preventative measure against accidents, but also support your claim or defence if the worse does happen.

Ensure your farming equipment is suitably insured

It’s important to keep track of where and how machinery is insured. Some equipment will be best insured on a farm policy, others on a motor policy, and some may require separate policies all together. Machinery can be insured for standard perils like fire, flood, and theft. But you might also like to consider including breakdown cover or cover for hired in equipment.

If you’re unsure of your current position, check with your insurance representative. They may be able to suggest ways of simplifying your farming insurances without compromising on cover.

In summary, now, more than ever, it’s crucial that farmers do what they can to manage their risks in order to remain insured effectively and in control of their premiums. So, whether you’re increasing your soil cultivation crop yield, maximising animal and herd head counts, always ensure that your farm insurance is ready to support your growth.

Machinery Insurance FAQs

How much does it cost to insure a tractor in the UK?

The cost of insuring a tractor in the UK can vary widely depending on several factors such as the tractor’s value, its usage, where it’s stored, and the level of coverage required. Basic third-party liability insurance might start from a few hundred pounds annually, but more comprehensive cover could cost more. It’s advisable to get multiple quotes from insurance providers who specialize in agricultural or farm vehicle insurance to get an accurate estimate.

Do I need insurance to drive a tractor?

Yes, if you are driving a tractor on public roads in the UK, you must have at least third-party liability insurance. This is required by law to cover any damage or injury that may be caused to other people or property. If the tractor is used only on private land, public liability insurance, while not legally required, is highly recommended to protect against any accidents involving third parties on your property.

How to insure a farm quad?

To insure a farm quad, you will need to find an insurer that offers cover for agricultural or specialty vehicles. Insurance for a farm quad can include coverages such as third-party liability, theft, and damage. When seeking insurance, be prepared to provide details about the quad’s make, model, value, and the nature of its use on the farm. It’s also important to specify whether the quad will be used exclusively on private land or if it will also be used on public roads.

What is farm select insurance?

Farm select insurance, also known as farm combined insurance, is a comprehensive insurance policy designed to cover various aspects of farming operations. This type of policy typically bundles together coverage for buildings, machinery, livestock, and liability into one policy. It can be tailored to the specific needs of a farm, providing a more flexible and often cost-effective approach to insuring a wide range of farming risks compared to purchasing separate policies for each aspect of the farm.