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Equipment Breakdown Coverage *
The risks are real; so is the
protection
On large and small farms alike, losses
from equipment breakdown typically cost thousands
of dollars and can easily climb into tens of thousands.
Farm equipment breakdown coverage is an affordable
way to protect farms and ranches from serious financial
loss.
Today, more than ever, the risk of
equipment breakdown is real. As a separate policy
or part of a farmowners insurance package, equipment
breakdown coverage protects the equipment farmers
have come to depend on every day.
COMPUTERS AND ELECTRONICS
Today, technology is part of farm
life. Modern operations using precision farming techniques
are high-tech intensive with GPS and other sophisticated
systems. But even traditional farms now rely on office
computers, phones and communications systems that
contain sensitive electronic technology.
High-tech equipment is fragile, highly
prone to breakdown and typically, once damaged, must
be replaced. In many cases, loss of farm income due
to breakdown compounds the costs.
Common Causes of Computer
and Business Equipment Breakdown
-
Power
surges
-
Power
interruptions
-
Electrical
line surges
-
Insulation
deterioration
-
Overload
A Typical Loss
Circuit board failure caused controls
for automatic dispensing pumps to fail and release
more than 483,000 lbs. of liquid cattle feed.
TOTAL PAID LOSS: $31,506
ELECTRICAL DISTRIBUTION
A variety of electrical equipment
is critical to a daily farm and ranch operations.
Electrical generators provide power for remote areas
or serve as back-up to primary energy sources. Electrical
panels, circuit breakers and cables control flow of
power to the farm.
On farms and ranches, many of the
conditions that cause breakdown are more extreme than
in other business environments. Temperature changes,
rain, dirt and dust - all part of the farm environment
- contribute to equipment breakdown risk.
Common Causes of Electrical
and Electronic Equipment Breakdown
A Typical Loss
A farmer's co-op had to replace a
utility transformer shorted out by a power surge.
A rental generator also was needed.
TOTAL PAID LOSS: $78,234
MECHANICAL EQUIPMENT
The motors, gears and many mechanical
parts in pumps, pivot irrigation, milking carousels
and other farms and ranch equipment are subject to
a variety of breakdown risks. Operating for long hours
and often stretched to maximum capacity, this equipment
is constantly at risk of breakdown.
Most mechanical equipment also contains
electrical parts and, on today's farms, it is highly
automated, controlled by sensitive high-tech equipment
that increases the risk of breakdown.
Common Causes of Mechanical
Equipment Breakdown
-
Lack
of lubrication
-
Oil
contamination
-
Misalignment
-
Metal
fatigue
-
Vibration
-
Electrical
disturbances
A Typical Loss
Overloading of a grain elevator caused
a crack in the main gearbox.
TOTAL PAID LOSS: $15,452
REFRIGERATION AND CONTROLLED ENVIRONMENTS
Dairies, ranches and other types
of farms depend on refrigeration to keep milk, medicine,
breeding materials and other farm essentials cool.
Equipment breakdown of refrigeration systems can be
costly and can also cause spoilage.
For farmers and ranchers managing
animals indoors, environmental control is a must.
Equipment is key to regulating temperature and air
flow, but compressor motors fail and other parts break
down frequently. A breakdown can mean equipment loss
and loss of farm income.
Common Causes of Refrigeration
and Air Conditioning Breakdown
-
Control
failure
-
Vibration
-
Loss
of lubrication
-
Rapid
weather change
-
Scale
buildup
A Typical Loss
A fruit farmer lost 825 lbs of refrigerant
when a failed piston rod caused a compressor breakdown.
TOTAL PAID LOSS: $14,548
BOILERS AND PRESSURE VESSELS
Boilers are widely used to generate
and distribute heat and hot water. Other types of
pressure vessels found on farms include sterilizers
and air tanks.
Increasingly, dairies and hog farms
are generating power from waste, burning methane to
product energy for their operations. Boilers and pressure
vessels are major parts of co-generation systems.
Common Causes of Boiler and
Pressure Vessel Breakdown
A Typical Loss
A boiler used to heat a mushroom
farm's growing room overheated due to lack of water,
resulting in extensive repairs.
TOTAL PAID LOSS: $18,768
* Exerpted from Hartford Steam Boiler
Inspection and Insurance Company.
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