Mid-market insurance

Agricultural machinery and tractor dealer insurance

Reviewed by the Apex broking team · Last reviewed 2026-11-04

Agricultural machinery dealer insurance is a combined programme protecting tractor and machinery stock, road movements, workshops, on-farm repair work, hire fleets and the liabilities of selling and servicing equipment. It matters because single machines are high value, mobile and attractive to organised thieves.

Part of: Motor trade insurance

In short

Tractor and machinery dealers carry concentrated stock in open yards, send engineers onto farms, move machines on public roads and often run a hire fleet. A suitable programme usually combines stock and premises cover, road risks for tractors and self propelled machines, liability for work done away from the premises, cover for hired out equipment, and products liability for new, used and refurbished machinery. Insurers focus on yard security, trackers and immobilisers, who drives on the road and how refurbished machines are inspected before sale, so those answers shape both cover and terms.

What dealers and servicing agents need to insure

Put simply: the machines you own, the machines you look after, the roads you use them on, and the work you do on other people's land. Many dealers start from a combined motor trade policy, but standard motor trade wordings are written around cars and vans. Self propelled harvesters, telehandlers, attachments and trailed implements may need to be named specifically, and some policies treat them as plant rather than vehicles.

Dealers also sit between two sectors. Customers are farms and contractors, whose own cover is described in our agricultural insurance guide and farm insurance pages, while the dealer's own risk is closer to a motor trader with a heavy plant element. The wider product is on our motor trade insurance page.

How the main covers fit together

Exposure	Typical cover	Points to check
New and used stock in the yard	Stock or internal risks section	Per location and per item limits; yard fencing, lighting, CCTV, tracker and immobiliser conditions
Machines on the public road	Road risks section or motor policy	Which vehicle types are included, driver ages and licences, trade plate use
Engineers working on farms	Public liability, tools and customer property cover	Heat work, damage to the machine being repaired, damage to crops or buildings
Hire fleet	Hired out plant or equipment cover	Whether loss while with the hirer is covered, and what your hire terms require the hirer to insure; see plant and equipment insurance
Parts and machines supplied	Products liability	Imported and own branded items, refurbished machines, territorial limits
Deliveries	Goods in transit	Low loader movements, loading and unloading, attachments carried separately

Road use, licences and tax: the official position

GOV.UK's guidance on agricultural vehicle licences, tax and fuel says agricultural tractors fall in driving licence category F with a minimum age of 17, or 16 for tractors less than 2.45 metres wide subject to trailer restrictions, and that most wheeled agricultural tractors can be driven on the public highway by anyone who has passed a car driving test. It also explains that an agricultural vehicle used only for farming, horticulture or forestry is exempt from vehicle tax, and sets out when red diesel may and may not be used.

That matters to insurers because a dealer's use is not always farming use. Delivering a machine, demonstrating it or moving it between depots is business use by the dealer. Check that road risks wording covers those journeys, the drivers involved, and any use of trade plates. GOV.UK says trade plates may only be used on insured vehicles and for the purpose stated on the application (trade plate rules).

Theft, hire fleets and refurbished machinery

Theft. Tractors and GPS guidance units are a recurring target, and stolen machines are often moved quickly. Insurers commonly ask about trackers, immobilisers, removal of guidance screens overnight, key storage and yard perimeter security. These may appear as policy conditions, so a lapsed tracker subscription can matter at claim time.

Hire fleets. Equipment hired out to farms and contractors is away from your control. Cover depends on whether your policy insures hired out equipment and on your hire terms, which typically require the hirer to insure or indemnify. The reverse position, where you hire in, is explained in what is hired in plant insurance.

Product liability. Under section 2 of the Consumer Protection Act 1987, liability for damage caused by a defective product can fall on the producer, on anyone who puts their name or mark on the product, and on the importer into the UK. A supplier can also become liable if it fails to identify those parties when asked within a reasonable period. Dealers who import machines, badge attachments or substantially rebuild used equipment should tell their broker. Product liability versus professional indemnity explains the boundary.

Workshop lifting equipment. HSE guidance on thorough examination of lifting equipment gives default intervals of six months for equipment lifting people and all lifting accessories, and twelve months for other lifting equipment, unless an examination scheme says otherwise.

What underwriters look at for a machinery dealer

Underwriters pricing a machinery dealership usually want a clear picture of the operation rather than a single turnover figure. Expect questions on:

Stock profile. The split between new, used and refurbished machines, the highest single item value, and how stock levels move through the year.
Depots and yards. Perimeter fencing, gates, lighting, CCTV monitoring, whether machines are stored inside or in the open, and how close the yard is to buildings.
Away from premises work. The proportion of turnover from field service, whether engineers carry out welding or cutting on farms, and how fire risks are controlled.
Hire. Fleet size and value, hire terms, damage waiver arrangements and how equipment is checked on return.
Claims history. Previous thefts, fires and liability claims, with the steps taken since.

A well prepared submission that answers these points tends to produce clearer terms and fewer surprises in the wording. The motor trade cost factors page explains how these points affect terms.

Illustrative examples

These examples are illustrative only and do not describe any real business or claim.

Yard theft. Two compact tractors and a guidance screen are taken from a depot over a weekend. The claim may depend on whether the tracker and immobiliser conditions were met and whether the per item limit is high enough.
On-farm fire. An engineer grinding near a combine on a customer's farm starts a fire that spreads to a barn. Public liability would usually respond to the third party damage, subject to any heat work condition.
Refurbished baler. A used baler is rebuilt and sold, and a guard fault later injures an operator. Products liability and employers' or public liability questions arise for the dealer and possibly the original manufacturer.

Common mistakes and what to check

Relying on a car based motor trade wording that does not clearly include self propelled agricultural machines.
Stock limits that ignore seasonal peaks before harvest or after shows.
Hire terms that do not match what the policy assumes about hirer responsibility.
Not disclosing imports, own branded parts or refurbishment work.
Forgetting employers' liability for engineers working alone on farms, and business interruption for a depot fire.

Before renewal, list peak stock and hire fleet values per depot, every type of road movement, the security fitted to high value items, and any import or refurbishment activity. If you also sell commercial vehicles, compare commercial vehicle dealer insurance.

Apex arranges insurance for agricultural machinery dealers; a broker reads every enquiry.

Sources

Frequently asked

Do tractor dealers need motor trade insurance or plant insurance?

Often both elements, sometimes under one policy. Motor trade road risks cover tractors and machines on the road, while stock, hired out equipment and attachments may sit better under a plant or equipment section. The key is that each machine type and each use is named in the wording, rather than assumed to be included.

Is a stolen tractor covered if the tracker was not working?

It depends on the policy. Many dealer policies make trackers or immobilisers a condition for higher value items, and failing to meet a condition can reduce or defeat a claim. Some wordings only apply the condition if the failure contributed to the loss. Check the exact wording and keep subscriptions and service records up to date.

Who is liable if a refurbished machine we sold injures someone?

Liability can rest with the dealer, the original manufacturer or both, depending on the defect and what the dealer did. Under the Consumer Protection Act 1987 producers, own branders and importers can be liable, and negligence or contract claims may also arise. Products liability cover usually responds, subject to the policy terms and disclosures made.

Does our policy cover machines while they are out on hire?

Only if the policy includes hired out equipment. Some dealer and plant policies cover it, others exclude it or require the hirer to insure. Your hire agreement should say clearly who is responsible for loss or damage during the hire, and that should match what your insurer has been told.

Do we need goods in transit cover if we deliver machines on our own low loader?

Usually yes. The low loader's motor policy covers the vehicle and third party liability, but the machine on the trailer normally needs goods in transit cover or a transit extension. Check that loading and unloading at the customer's farm, attachments carried separately and overnight stops are included, and that the limit reflects the most valuable machine you move.

Mid-sized business? Have your programme reviewed

Send us your current schedules or renewal pack and we will review the whole programme and tell you plainly what to keep and what to change. No fee and no obligation. Or call 0117 325 0027.

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Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.