Insuring Specialty and Industrial Vehicles

When a traditional policy fails to meet your unique needs, it might be time to consider specialty coverage. These unique policies concern specific types of vehicles, such as farming protection, or offer coverage for a limited period of time, such as seasonal auto insurance. We've summarized four of the most common types below.

Seasonal Protection

For the most part, seasonal auto protection applies to the business market, but it may also apply to individual entities as well. A seasonal business is one that operates only during certain times of the year, which consequently affects the company's needs. For example, snow plow or ice cream truck insurance would need seasonal business auto policies.

The type of seasonal product that is right for your business depends primarily on what you intend to do with the automobile during your off-season. If you plan to use it for personal driving during the off-season, you will need to let your provider know. Doing so will lower your premiums because you will not be performing any business duties with it. On the other hand, if you only plan to store the vehicle during the off-season, you should remove all add-ons from your specialty plan except comprehensive. Comprehensive coverage will protect it from things like falling objects, vandalism, hail, and theft while it is in storage. Do not cancel your agreement entirely during the off-season, as this will result in an interruption in service that will have financial penalties in the future.

Limited Use Considerations

Limited use coverage is similar to classic or historical auto insurance in that it protects vehicles that are rarely driven. Unlike classic car protection, however, those that qualify for limited use do not have to meet certain age requirements. With most carriers, the primary qualification criterion for limited use car insurance coverage is minimal annual mileage typically 2,500 to 5,000 miles. If the policyholder exceeds the mileage limit set by the carrier, the limited use product may not be renewed.

The vehicle may also not be used for normal driving purposes. In other words, you cannot use one covered by a limited use agreement to drive to and from work or school. Additionally, it cannot be used for business purposes and must be stored in a very specific location, such as a fully enclosed garage, every night.

Recreational Car Considerations

Recreational policies cover non-traditional vehicles primarily used for recreational purposes. Examples of recreational plans include ATV/quads, RVs, boats, travel trailers, golf carts, and snowmobile insurance. A typical recreational policy will offer collision and comprehensive with the option of a liability add-on. In some states, certain recreational vehicles are required to have a certain amount of liability protection when driven on state-owned lands, for example. Regardless of the type of recreational vehicle that you have, it's important to at least carry physical damage component because your homeowner's policy most likely will not offer reimbursement if anything happens.

Farming and Ranch Considerations

Damage to farming equipment can put the success of your business on hiatus indefinitely; farming insurance will see that this does not happen to you. Also known as farm equipment insurance, this provides comprehensive protection of valuable items on your property. Examples of covered items might include pumps, heating and cooling systems, production equipment, boilers and water heaters, electrical distribution systems, tractors, and more. A general farm and ranch insurance product, however, is different from an equipment plan in that it more closely resembles a home policy. Farm and ranch service protects the structure of your land (and your livestock) rather than your materials and equipment.