South Central Mutual Insurance Company Equipment Breakdown Coverage for Dairy FarmsToday’s dairy farms have implementedtechnology equipment which improves efficiencies in dairy operations and wholesaling of dairy products. As a dairy farm owner, you depend on many types of mechanical and electrical equipment to operate your farm. To gain a perspective of the equipment subject to equipment breakdown failure, think of the dairy production that can not be accomplished during a power outage to your farm.

Electricity is so critical that many farms are often equipped with emergency generators to conduct critical operations during electrical service interruptions. Having installed electric-generating capacity creates even more opportunities for equipment breakdown. These hazards include electrical arcing of generator windings and mechanical damage to diesel engine push rods and exhaust valves.

Electrical breakdown is the more common type of loss. An electrical power surge caused by a transient-over-voltage condition can destroy circuit breakers, motors and electrical control equipment used to operate the farm. This can lead to significant property damage and interruption of normal operations for days until repairs can be made or replacements can be installed.

Mechanical equipment at these locations include: milk collection equipment, rotating milking parlors, silo un-loaders, automatic waterers, drinking cups, pasteurizers, barn cleaners/floor scrapers, manure pumps, pipeline milkers, computerized feeding apparatuses, windmills used for

pumping water, sawmill equipment, vacuum pumps, electric motors, fans/blowers, blowers for silos, hay conveyors/elevators, feed conveyors, computerized feeding systems, air and refrigeration compressors, scales, fuel pumps and alarm systems.

Some jurisdictions require dairy farmswith a point of sale located on the premises to have boilers and pressure vessels inspected by a qualified inspector and these services are provided at no charge as part of the equipment breakdown coverage. These inspections, when conducted by state inspectors or a fee-for-service inspection agency, can run as high as $500 per inspection, plus the additional certificate fee.

Typical LossesA small fire tube boiler overheated, which resulted in cracking and sagging of the furnace tube due to a low-water condition. Rental equipment was brought in to keep the business operational while repairs were completed.Property Damage: $3,800Extra Expense: $600

Electrical breakdown of a grain dryermotor was caused a by a single phasing event.Property Damage: $2,443

An electric generator’s windings suffered an electrical breakdown believed to be precipitated by a power surge from the local utility.Property Damage: $22,500

Boilers and Pressure Vessels Boilers Fired/Unfired Vessels Refrigeration Units Air Conditioning Units

Mechanical Equipment Milk Collection Equipment Rotating Milking Parlors Silo Un-loaders Automatic Waterers Pasteurizers Manure Pumps Feeding Apparatuses ...and many more

Electrical Equipment Motors Emergency Generators Transformers Computers Switchboards Distribution Systems Communications Equipment Fans Vacuum Systems

Time Element Business Interruption Extra Expense Service Interruption

Exposures

Printed in USA ©2012 Factory Mutual Insurance Company. All rights reserved. This info. sheet is made available for informational purposes only in support of the reinsurance relationship between Mutual Boiler Re and its Partner Companies. This information does not change or supplement policy or treaty terms or conditions. The liability of Mutual Boiler Re is limitedto that contained in the reinsurance treaty agreement.

Farm repairs aren’t what they used to be.

A generation ago, farmers repaired most of their own equipment.

All you needed was a good set of tools. But times have changed. Repairing today’s complex farm equipment – ventilation systems, milking equipment, generators – is a far more complex and expensive challenge. The good news is that you don’t have to worry about the cost of those repairs anymore. With Farmowners Equipment Breakdown Insurance, you’re protected. And for a price any farmer can afford.

Introducing Farmowners Equipment Breakdown Insurance. The protection you need against costly farm equipment repairs.

It covers the complex equipment you may not be equipped to repair yourself.When was the last time you repaired an alarm system? What about a computerized feeding system or a rotating milk parlor? Chances are you have neither the time nor the resources to handle those kinds of repairs. But what if you didn’t have to worry about the cost of those repairs? That’s the peace of mind you’ll enjoy with Farmowners Equipment Breakdown Insurance. It covers expensive equipment repair costs, so you have one less thing to worry about.

It also covers the equipment in your home.In addition to covering a wide range of equipment, Farmowners Equipment Breakdown Insurance covers all of your important home systems and property due to loss by mechanical or electrical breakdown. That includes appliances, heating and cooling systems, water heaters, well pumps, home security systems, electrical systems, personal computers, home electronics and more.

It’s simple and straightforward.There are no hidden exclusions and no confusing fine print with Farmowners Equipment Breakdown Insurance. The coverage is straightforward and easy to understand. We’ve also simplified the claims process, so you can get your equipment repaired or replaced quickly.

It’s the smart thing to do.It only takes the loss of water supply, ventilation, refrigeration or electricity due to failure of key equipment to bring your farm operations to a halt. That’s why Farmowners Equipment Breakdown Insurance is so important. It covers the cost of repairing all kinds of equipment so you can quickly get back to the business of farming.

Talk to your insurance representative.Your insurance representative can tell you more about all the advantages of Farmowners Equipment Breakdown Insurance – including how affordable it is. Remember, sooner or later an important piece of equipment on your farm is going to break down. Don’t leave yourself unprotected. Call your insurance representative today.

It covers a broad range of complex equipment.Farmowners Equipment Breakdown Insurance covers nearly all the critical equipment and systems your farm depends on to function efficiently:

• Well/water pumps • Pasteurizers• Computerized feeding systems • Silo unloaders• Milking parlors • Cooling systems• Circuit breaker panels • Milk collection equipment• Alarm systems • Automatic waterers• Boilers • Manure pumps • Cleaning systems • Electrical/emergency• Air and refrigeration generators compressors

Here are two examples of how this protectioncan save you thousands.

A deep well pump on an irrigation system suffered a line shaft fracture just above the bowl assembly, causing substantial damage. After the deductible, Farmowners Equipment Breakdown Insurance paid $16,733 for needed repairs.

Well pump.

Refrigeration.

A control malfunction caused the copper tubes of the chiller’s heat exchanger to rupture. After the deductible, Farmowners Equipment Breakdown Insurance paid $113,908 to replace the tubes and compensate for losses.