Trouble finding insurance for tractor

[BoylermanCT]

My agent says inland marine coverage is only available as part of business insurance. I don't make money using my tractor. I simply want it covered as I trailer it to family and friends in CT, MA and NY. Those of you that have it, is it part of a business or a personal policy.

 

[K5lwq]

Your agent is not correct. Just contact your local Farm Bureau insurance agent. They will write a inland marine policy. In fact mine is a inland marine policy and clearly states it does not cover my tractors if I am being paid for the work. I can help my neighbors if I want and be covered as long as they don't pay.

 

[fried1765]

My agent says inland marine coverage is only available as part of business insurance. I don't make money using my tractor. I simply want it covered as I trailer it to family and friends in CT, MA and NY. Those of you that have it, is it part of a business or a personal policy.

Your agent is WRONG!
I do NOT have a business, and do have Inland Marine insurance.
It is a personal single item (tractor) policy.
It is available for construction and farm machinery.
A personal tractor can be considered either or both!

 

[Torvy]

Guys, y'all can be right. Maybe in CT, that is how it is. State laws prevail and maybe inland marine has different rules in CT than in TX or FL.

 

[K5lwq]

According to CT Farm Bureau website they write policies for tractors.

 

[Torvy]

Again, they can say they write policies for tractors and still require it to be a business policy, which was the actual complaint. Frankly, I would more likely set up my farm as an LLC to protect against liability concerns. No requirement to turn a profit. Heck, you could set up as a non-profit LLC and donate the fruits of your labor to charity. Either way it is a business.

 

[K5lwq]

Then I guess a individual can't finance a tractor in CT because they will require full coverage insurance. Makes zero sense to me but ok.

 

[Torvy]

Most businesses are sole proprietorship. Read: individuals. The business can buy the tractor and the insurance. Legally, you are much better off limiting the liability. The nuances of insurance law are tricky. Maybe it is too big a risk in a litigious place like CT to offer it. Other companies may make another decision. Either way, my point is hypothetical. Best if someone else from CT was to share with him who offers tractor insurance there.

 

[K5lwq]

KTAC, according to their website offers coverage in all 50 states. If they can offer coverage, why couldn't any other company?

 

[Torvy]

Every company has their own cost benefit analysis. Lots not financial institutions don't do AG loans. The problem is not just risk, there are just a lot of variables and only so many trained AG underwriters to go around. Insurance is probably similar. How much do you charge for tractor insurance? Another large set of widely variable risks. Most computer models are not fed enough data to decide, so they need people to make educated guesses, which increases the expenses, so those costs are passed along. Ultimately, it just leads to many companies bailing completely on a segment or a state. Some will technically work in all states, but they price themselves out of the market intentionally. They can still advertise 50 state coverage, but only on paper.