Insurance: How do you guys insure your tractors for hire work?

[MinnesotaEric]

I'm in Minnesota, have a FICO around 830ish, and I cannot get the kind of insurance I want to cover my tractor.

I can get a rider policy that covers the cost of the tractor and attachments through USAA (and others), but I cannot get a liability policy that covers the tractor and myself doing any for hire work or when I leave my property.

Why is this hard?

How did you cover your tractor and specifically, how did you insure your tractor for for hire work and liability for when the tractor is off of your own property?

Contact information will be greatly appreciated.

 

[jeff9366]

Why is this hard?

If you are really an Oracle you should be able to divine the answer.

 

[MinnesotaEric]

If you are really an Oracle you should be able to divine the answer.

After the Army, I studied mechanics, divinity, finance, and real estate, not MN insurance law. In Latin an Oracle is one "who speaks," not the Mr-Know-It-All your unhelpful response assumes.

 

[George2615]

My policy covers my tractor and implements on or off my property as long as I'm doing my own work and not for hire. If you use the tractor for hire you'll need a commercial policy available through most any insurance company.

 

[MinnesotaEric]

My policy covers my tractor and implements on or off my property as long as I'm doing my own work and not for hire. If you use the tractor for hire you'll need a commercial policy available through most any insurance company.

After several different agencies thought they could write a policy, my State's secondary market keeps refusing to underwrite a commercial policy with a tractor. At this point my hope is writing a small ranch policy and getting the tractor added onto it as an inland marine policy or as a commercial landscaper.

At the end of the day I want a commercial liability policy that covers things I can do with a tractor as well as covering my attachments and the tractor itself.

 

[George2615]

I guess each state is different. I have full coverage on my tractor and implements anywhere I go including glass and tires. But it's doesn't cover me if I do work for someone else (for hire). I plan on using my tractor for hire once I retire and at that point I'll get a commercial policy. Just can't justify the cost of that for the few for hire jobs I'd be doing now. My personal tractor policy is written by CNH insurance but is an Inland Marine policy.

 

[prosperity]

When I was running my little lawn care/landscaping business I had a commercial policy through my insurance agent who also holds my auto and home policies. The difference of getting an affordable policy vs. not getting anything at all was if I was going to dig or not. For my use which was mowing, trimming hedges, laying down mulch and stuff like that I was covered with no problem. I think my policy was $500k liability for $300 per year. My agent told me that I am covered for digging only 2" and that was it. If I was going to use a backhoe or anything like that he doubted he could write me a policy.

 

[My Hoe]

Great question, good thread--subscribed!

 

[roadhunter]

Great question, good thread--subscribed!

Yes. I think many of us do not understand how this works, me included.

I have a situation where all my neighbors operate tractors and various 3 point equipment on a daily basis but for some reason my insurance company decided operating a tractor with a post peeler attachment was a totally different operation and not covered by a "farm/ranch" policy and would require commercial insurance.
I tried to explain that processing a log into a fence post was no different than processing grass into a hay bale but for some reason they do not see it that way. Really irks me as farmers seem to get away with doing all sorts of for profit activity but don't have to carry commercial insurance.

Essentially my agent is claiming my neighbors can go cut grass, process it into a bale of hay with a tractor, and sell it for profit all under their farm policy.
But If I cut a tree and process it into a fence post with a tractor, and sell it for profit, I need a commercial policy even if the tractor and peeler never leave my property. Makes no sense to me.

Any insurance gurus who can help us understand how to properly insure our tractor if we do anything for profit with it?

 

[edgarrian]

When I had an excavator business about 10 years ago in IN I had no problem getting insurance. Id almost think that insurance companies now days are just becoming afraid to underwrite someone just in case they did decide to dig. I know of a few guys that hit fiber optics without insurance and lost everything. So imagine if your insured and you hit somehting like that its very costly. It doesnt justify why you cant get insurance in your state. I just started a consulting business that I formed in IN but I had to go out of state to get insurance b/c nobody in IN would underwrite me. I own my own consulting business in the oil and gas industry. It took me sometime to find a guy but i was able to. Id look outside of your state for policy if you cant find one in state. Its a little unorthodox I know but it worked for me.

Have you formed a business name and recieved your tax id number. IF not that may help you. I actually just got on the internet and researched insurance related to oil and gas and found a guy that was able to.