Farm Insurance is a Packaged Policy in which a Farmer or Pastoralist can insure all their Structural assets , Motor Vehicles, Machinery and Liability in one Policy.
Farmer is working his land with his tractor insured under the farm policy. The tractor catches fire and burns completely and starts a fire which burns his neighbour’s crop.
The Tractor will be covered for fire damage.
The Neighbour would be compensated under the Farm Liability section of the Farm Policy.