Equipment Breakdown for All Farmowners Policies
Hastings Mutual has added Equipment Breakdown Coverage to all Farmowners policies! This coverage addition entails no additional premium charge to the policyholder!
This new coverage may be very valuable to you clients. All farms rely heavily upon equipment that is continually exposed to harsh environments and working conditions. When this equipment fails due to mechanical breakdown or external influences, farmers not only incur the costs of fixing affected equipment, but can also suffer severely due to business interruption and loss of production.
We have added Equipment Breakdown Coverage
that covers beyond the standard Farmowners policy:
- Physical damage sustained by covered equipment
- Business interruption due to equipment breakdown
- Lost value of spoilage due to equipment breakdown
- Mechanical breakdown
- Shorted electrical circuits
- Overheating, cracking or bulging of a boiler or other pressure vessel
- Centrifugal force
- Ammonia contamination due to equipment breakdown
Covered equipment includes:
- Air Conditioning Units
- Communication Systems
- Electrical Distribution Systems
- Electrical Equipment
- Emergency Generators
- Fired/Unfired Vessels
- Fired Water Heaters
- Heating and Cooling Systems
- Mechanical Equipment
- Pressure Vessels
- Process Machinery
- Refrigeration Units
- Service Interruption
- Stationary Farm Machinery
- Vacuum Systems
Below are two typical farm loss examples that may involve this new coverage:
Large Dairy Operation
A mechanical vapor re-compressor in the evaporation cycle suffered a mechanical failure of the rotor, effectively stopping the processing of milk into powder.
Loss = $248,800
Business Interruption = $754,400
An entire crop of cucumbers was lost due to electrical breakdown of an environmental control computer that shut down after a mouse damaged a circuit board.
Loss = $1,463
Consequential Damage and Business Interruption = $180,000
We are very excited that we can provide this valuable coverage to our policyholders. This is further demonstration that Hastings Mutual is a recognized leader in Farm Insurance coverage in the Midwest.