Farm Equipment Insurance

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Coverage for Tractors, Combines, Implements, and the Machinery That Runs Your Operation

On most farms and ranches, the equipment is the single largest investment on the place - often worth more than the buildings. A combine alone can run $400,000 or more, and a mid-size operation can easily have a million dollars or more in tractors, implements, and trailers. Here is the problem: a basic farm property policy underinsures all of it, and it does not follow the equipment into the field or onto the road, which is exactly where the risk is.

Farm equipment insurance fixes that. Written as an inland marine or equipment floater policy, it covers your machinery at replacement value, wherever it works - in the shed, in the field, between jobs, and in transit. Grit Insurance Group is an independent brokerage; we shop the farm-market carriers and place your equipment coverage with the one that fits your operation, in all 50 states.

Why a Standard Policy Underinsures Your Equipment

It pays depreciated value. A basic policy often pays actual cash value - the worn, used-up value of the machine - not what it costs to replace it today.
It is tied to a location. Property coverage protects equipment at a fixed address. The moment a tractor leaves for the field or a custom job, that coverage can stop.
It misses in-transit and overturn losses. Equipment on a trailer or rolling on uneven ground faces real risk a homeowners-style policy was not built for.
It has low limits. The equipment sublimit on a basic farm policy is usually a fraction of what your machinery is actually worth.

What Farm Equipment Insurance Covers

An equipment floater is built around the machinery and how it is used:

Tractors - compact, utility, and full-size field tractors
Harvest equipment - combines, headers, grain carts, and balers
Tillage and planting - planters, drills, plows, and cultivators
Application equipment - sprayers, spreaders, and self-propelled rigs
Hay equipment - mowers, rakes, balers, and handling equipment
Trailers and transport - equipment trailers, gooseneck and flatbed
Tools and small implements - blanketed under a single limit

Covered causes of loss typically include fire, theft, vandalism, collision and overturn, windstorm, and damage in transit - at home, in the field, and on the road between jobs.

Tractors and Specialty Equipment

Tractors are the heart of most equipment schedules, and they come in every size and value. Compact and utility tractors used for chores and acreage work, full-size field tractors that run the operation, and antique or vintage tractors that are restored or collected can all be covered. Older and collectible tractors are often insured at an agreed value, since their worth is not tied to a standard depreciation schedule. One important distinction: this is farm tractor coverage. Over-the-road semi-tractors and tractor-trailers are a separate trucking product with different exposures - we handle those under commercial auto, not the equipment floater.

Scheduled vs Blanket Equipment Coverage

Most operations use both approaches. Your highest-value machines - combines, large tractors, and self-propelled sprayers - are scheduled individually at agreed or replacement value, so a total loss pays what it actually costs to replace them. Smaller implements, tools, and attachments are blanketed under a single limit. Scheduling protects your biggest assets fully; blanketing keeps the rest of the program simple and affordable. We help you decide which pieces belong where based on value and how the equipment is used.

What Farm Equipment Insurance Costs

There is no flat rate - cost tracks the equipment. Equipment floater policies are generally priced around 1% to 3% of the total insured value per year, depending on the types of machines, your location, storage, and claims history. A $500,000 schedule might run roughly $5,000 to $15,000 a year. Replacement-cost coverage costs more than actual cash value, but it is what keeps a totaled combine from becoming a six-figure hole in your operation. The accurate number comes from a review of your equipment list and how you use it.

How Grit Covers Farm Equipment

As an independent brokerage, Grit shops the farm-market carriers and places your equipment coverage with the one that fits - then makes sure it coordinates with the rest of your farm and ranch insurance program so there are no gaps between your equipment, property, auto, and liability coverage. We value the schedule correctly up front, on a replacement-cost basis where it makes sense, so you are not underinsured when something goes wrong in the field.

Frequently Asked Questions

What does farm equipment insurance cover?

Farm equipment insurance covers your machinery - tractors, combines, balers, planters, sprayers, trailers, and implements - against fire, theft, accident, overturn, and damage, at home, in the field, and in transit between fields or jobs. It is typically written as an inland marine or equipment floater policy, separate from a basic farm property policy, so the coverage follows the equipment wherever it works.

How much does farm equipment insurance cost?

Equipment floater policies are typically priced around 1% to 3% of the total insured value per year, depending on the equipment, location, and claims history. A $500,000 equipment schedule might run roughly $5,000 to $15,000 a year. Replacement-cost coverage costs more than actual cash value, but it is what keeps you whole when a high-value machine is totaled.

What is the difference between replacement cost and actual cash value for equipment?

Actual cash value pays the depreciated value of the machine - what it is worth used, minus wear. Replacement cost pays to replace it with like equipment at today's prices. For a late-model tractor or combine, the gap between the two can be tens of thousands of dollars, which is why underinsuring equipment on an ACV basis is the most common and costly gap in farm coverage.

Is my tractor covered - including a compact, utility, or antique tractor?

Yes. Farm tractors of all kinds can be scheduled - compact and utility tractors, full-size field tractors, and antique or vintage tractors, which are often insured at an agreed value because their worth is not tied to a depreciation table. Note this is farm-tractor coverage, not over-the-road semi-tractor (trucking) insurance, which is a different product.

Is my equipment covered in the field and in transit?

Yes. That is the core advantage of an equipment floater over basic farm property coverage - the equipment is covered wherever it works, including in the field, on the road between fields or custom jobs, and in transit on a trailer. A policy that only covers equipment at a fixed location leaves your biggest assets exposed exactly when they are most at risk.

Should I schedule each piece of equipment or blanket the whole fleet?

Most operations use both. High-value machines - combines, large tractors, self-propelled sprayers - are scheduled individually at agreed or replacement value, while smaller implements and tools are blanketed under a single limit. Scheduling your most valuable equipment makes sure it is fully covered; blanketing the rest keeps the program simple and cost-effective.

Protect the Equipment That Runs Your Operation

Your machinery does not sit still, and your coverage should not either. A Grit equipment review prices your schedule correctly, covers it wherever it works, and coordinates it with the rest of your farm program.

Call (801) 505-5500 or start a quote online.

Farm Equipment Insurance