Understanding Equipment Breakdown Insurance for Dairy Farms
- Nate Jones, CPCU, ARM, CLCS, AU
- 2 hours ago
- 2 min read
Modern dairy farms rely heavily on specialised machinery that runs every hour of every day. From vacuum pumps to bulk tank chillers to automated milking systems, a single equipment failure can disrupt your entire operation, putting herd health, milk quality, and revenue at risk. That’s why equipment breakdown insurance is one of the most important components of a strong dairy farm insurance policy.
Below is a clear explanation of how this essential coverage works and why it should always be included when requesting a cattle farm insurance quote.
1) What Equipment Breakdown Insurance Covers
Equipment breakdown insurance protects your dairy from losses caused by:
Mechanical failure
Motor burnout
Pressure system failure
Boiler or compressor breakdown
Failure due to power surges or electrical issues
Unlike standard property insurance, which covers external forces like fire, wind, and lightning, equipment breakdown specifically protects equipment from internal failures.
2) Critical Dairy Equipment Covered
Coverage often applies to:
Bulk tank compressors and chillers
Vacuum pumps
Heat exchangers
Milk transfer systems
Parlour automation and control panels
Generators
Feed system motors and sensors
Water pumps and pressure systems
Refrigeration and HVAC components
A failure of any of these systems can shut down milk production instantly, making this coverage essential for every dairy operation.
3) Spoilage & Milk Contamination Coverage
Equipment breakdown policies can also include:
Milk spoilage
Milk contamination
Loss from temperature fluctuations
Utility service interruption (on‑ or off‑premises)
When a compressor, pump, or chiller fails, hundreds or thousands of dollars in milk can be lost in minutes. Spoilage coverage ensures that loss is reimbursed.
4) Why Equipment Breakdown Isn’t Included in Standard Property Insurance
Many dairy owners mistakenly believe property insurance covers machinery failures, but it doesn’t. Traditional property insurance only covers external damage, while equipment breakdown covers internal mechanical and electrical failures.
This distinction is crucial. Without equipment breakdown, a dairy farmer could pay out‑of‑pocket for major repairs or replacement.
5) How to Keep Premiums Affordable
You can reduce the cost for dairy farm insurance by:
Updating equipment values annually
Scheduling only major equipment
Maintaining service logs
Installing surge protection
Improving ventilation and electrical systems
Better maintenance often leads to better pricing.
Protect Your Dairy’s Most Essential Equipment
Not every insurer understands how critical automated milking systems, pumps, and chillers are to dairy operations. Wexford Insurance partners with top‑rated carriers that specialise in dairy and cattle farm insurance, helping owners choose the right equipment breakdown coverage, limits, and deductibles, at competitive pricing.
👉 Request your Dairy Farm Insurance quote from Wexford Insurance today and ensure your herd, equipment, and income are fully protected.
