Rented, leased and borrowed machinery – are you covered?

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With harvest in full swing in Minnesota, it is crucial to keep your equipment functioning properly, especially during a late harvest like the one we’re experiencing. What if you have a breakdown that forces your combine to be in the shop for a week?  What if you need a specific piece of machinery to perform fall tillage, but would rather lease it? Rented, leased or borrowed machinery comes into play for many reasons. Would you be covered for all the unknowns during harvest? Well, we are here to help explain the different coverages.  Here are seven frequently asked questions with some very important information to know:

1.      Is rented, leased or borrowed machinery included on your policy?  Or, do you need to call your agent to add it?  That depends on the company and type of policy you have.  Some policies automatically include that coverage and others only include the coverage if you specifically list the equipment at the time it’s borrowed, rented or leased.

 

2.      If it’s included, is there a limit to the amount of time you can rent, lease or borrow it?  That, too, depends on the policy.  Some companies allow 30 or 60 days of use.  Other companies may not have any time limit.

 

3.      Is there a limit to the value of rented, leased or borrowed machinery you can have?  It’s likely that there will be a limit to the value that’s automatically included, like $100,000.  With the values of combines and tractors today, that limit wouldn’t be enough for those items.  But, if you’re renting a skid loader or tillage equipment, that limit may be sufficient.

 

4.      What deductible will be applied if there is a claim?  Policy deductible will most likely apply.  Certain policies may allow for a lower deductible to be applied.

 

5.      Is Special Form coverage extended to the rented, leased or borrowed machinery?  No, Special Form isn’t automatically applied.  This is especially important during harvest when ingesting a rock into a borrowed combine could mean lots of damage that your insurance policy may not pay for without the correct coverage.  Rock ingestion would only be covered under Special Form coverage.

 

6.      What might NOT be covered?  Motor vehicles (cars or pickups) or recreational vehicles like Rangers are not eligible to be covered by rented, leased or borrowed equipment.  Rented, leased or borrowed machinery primarily pertains to tractors, combines and other farm implements.

 

As always, if you have any other questions, we are just one phone call away and would love to help you with your questions. Contact us at 507-473-4900!

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