Protect Your Investment with Pivot Insurance
Apr 15, 2019
They’re likely the most durable piece of equipment on your farm, but there are times when your center pivots are up against the forces of Mother Nature. That’s why insurance is one of the most important things you can add to your irrigation system.
It’s important to make sure you have the right coverage, so we asked Jon Taylor, of Diversified Agrisurance to answer some of the most common questions growers have when evaluating pivot insurance policies.
Why do growers need to insure their center pivots?
Center pivots are a big investment for farm operators. Just like a tractor or combine, pivots are important parts of the operation and losing one can be costly to the operation’s bottom line – in terms of repair or replacement and loss of irrigation time.
What does a pivot insurance policy typically cover?
Most policies are going to cover losses to Mother Nature – tornado, wind, hail, fire, lightning or flood. Many policies, ours included, will also cover loss due to theft or vandalism. We also cover loss due to collision with farm implements or rodent damage and loss due to mechanical or electrical failure during the pivot’s first 20 years – like a bolt sheering off or a micro switch fails.
What should growers consider when evaluating coverage options?
They need to ask if the policy covers replacement costs or will it be depreciated if there’s a loss. It’s also important for them to take a look at the deductibles. Some companies require a deductible for each item lost in the same storm event, therefore making the insured pay multiple deductibles. Other companies, like ours, only require one deductible per policy per occurrence, so the customer only has to pay one even if multiple items are lost.
What should growers look for when choosing an insurance provider?
They should ask their dealer about the insurance provider’s reputation in the industry – who they like to work with and who will be able to get them up and irrigating again quickly.
How often should policies be reviewed?
We review policies annually before sending them out to our customers for renewal. Pricing fluctuates every year, so it’s important for them to sit down with their dealer to evaluate how everything prices out or what’s been added to their irrigation system.