Q

Our farmowners insured was driving his tractor when he hit a rather large branch lying on the ground. He stopped the tractor and checked for damage. Seeing none, he continued working.

A short time later, the engine started smoking. At this point, our insured again stopped the tractor, and had it towed back to his barn.

The insurer is denying the claim for the engine based on the “mechanical breakdown” exclusion. We don't think that applies; after all, as soon as it started smoking, our insured shut the tractor down and did not use it.

Your thoughts, please.

Indiana Subscriber

A

The cause of this loss appears not to be mechanical breakdown. Rather, it appears to be collision. In order to be sure, more evidence must be gathered to show the causal connection.

If the loss can be shown to be collision, then it is covered. Also, once the insured knew there had been a loss, he did everything possible to mitigate further damage. When he first hit the branch, he stopped the tractor and looked for damage. With none visible, he proceeded to drive the tractor. However, once he noticed something wrong, he stopped the tractor and had it towed back.