HARTFORD, Conn.--(BUSINESS WIRE)--The Hartford Steam Boiler Inspection and Insurance Company (HSB), part of Munich Re, today announced its new Farm Equipment and Machinery Breakdown Coverage with expanded insurance for mobile implements and the precision electronics that control them, among other enhancements.
HSB’s optional insurance for mobile farm implements, such as seeders, spreaders, sprayers, tillers, and their controlling electronics addresses, for the first time, a major gap that has existed in farm owners insurance. No policy has been available until now that covers both breakdowns to portable agricultural implements and undetectable damage to sensitive micro-circuits or firmware failure.
“Covering mobile farm implements and the electronics for precision farming is a ground-breaking innovation," said Rebecca Galovich, HSB vice president. “We’ve followed the farmer into the field, with insurance that covers not only the physical breakdown of farm implements but also invisible-to-the-eye microelectronics damage and firmware failure.”
Today’s farm implements and precision farming technology contain sensitive microelectronics and proprietary computer systems that require specialized technicians to fix. All it takes is a little bit of dust or crop chaff to blow a circuit or sensor and shut down an implement vital to planting, growing or harvesting. It may take days to get an authorized dealer or manufacturer technician for repairs. Farmers who need to fix things on the fly now face repair challenges they couldn't have imagined a few years ago.
“Farmers practically need to be a computer expert to fix their own equipment with the sophisticated systems and controls OEMs of precision agriculture equipment have installed,” said Galovich. “In our survey of farmers and dealers we discovered that farm implements were not covered under warranty from 52 percent to 70 percent of the time.”
HSB conducted a survey of farmers and members of the North American Equipment Dealers Association (NAEDA) to understand the equipment and implements farmers own, its lifespan, how it fails, failure frequency, repair and replacement costs, and the percentage not covered under warranty.
Since farmers are operating more renewable energy equipment, HSB Farm Equipment and Machinery Breakdown Coverage includes enhanced insurance for breakdowns to wind turbines, solar systems and other generating equipment. The coverage pays for lost income from the sale of energy, the purchase of replacement power, and the loss of renewable energy credits and offsets when breakdowns occur.
HSB’s new farm coverage also can cover, as an option, the loss of income for contract farmers who raise hogs and poultry when an equipment failure leads to the deaths of the animals.
HSB’s Farm Equipment and Machinery Breakdown Coverage will be available through farm insurers that partner with Hartford Steam Boiler.
Hartford Steam Boiler (HSB), a member of Munich Re’s Risk Solutions family since 2009, is a leading engineering and technical risk insurer providing equipment breakdown insurance products, other specialty coverages, and related inspection services and engineering consulting. Founded in 1866, HSB's difference is grounded in extensive technical knowledge with over 50 percent of its staff engineers, inspectors and technical personnel around the globe. We leverage our knowledge to anticipate future risks and develop a range of specialized solutions that enable our clients to build deeper and more profitable customer relationships. HSB holds A.M. Best Company’s highest financial rating, A++ (Superior). For more information, visit www.hsb.com and connect on Twitter, Facebook and LinkedIn.
About Munich Re
Munich Re stands for exceptional solution-based expertise, consistent risk management, financial stability and client proximity. This is how Munich Re creates value for clients, shareholders and staff. In the financial year 2014, the Group – which combines primary insurance and reinsurance under one roof – achieved a profit of €3.2bn on premium income of over €48bn. It operates in all lines of insurance, with over 43,000 employees throughout the world. With premium income of around €27bn from reinsurance alone, it is one of the world’s leading reinsurers. Especially when clients require solutions for complex risks, Munich Re is a much sought-after risk carrier. Its primary insurance operations are concentrated mainly in the ERGO Insurance Group, one of the leading insurance groups in Germany and Europe. ERGO is represented in over 30 countries worldwide and offers a comprehensive range of insurances, provision products and services. In 2014, ERGO posted premium income of €18bn. In international healthcare business, Munich Re pools its insurance and reinsurance operations, as well as related services, under the Munich Health brand. Munich Re’s global investments amounting to €227bn are managed by MEAG, which also makes its competence available to private and institutional investors outside the Group.