FARM LIABILITY
FARMERS PERSONAL & COMPREHENSIVE LIABILITY
UNDERWRITING GUIDELINES
RULE I INSURED
1.1 The person or entity named on the declarations, the spouse living in the same household as the insured, a person living with the insured and related by blood, marriage, or adoption, a ward, foster child or foreign exchange student living with the insured, and any unmarried and financially dependent child under the age of 25 who is away at school.
1.2 Only one individual or entity may be named as the named insured. All others are considered additional insureds and a premium will be charged. Caution: Adding additional named insured decreases the liability coverage available per insured.
RULE II LIABILITY COVERAGES
2.1 This policy provides coverage for the personal acts of the named insured, the business operations, (farming) and those named in Rules 1.1.
2.2 ADDITIONAL BUSINESS RECEIPTS in excess of $2,000 per year are not covered by the Farm Liability policy. If the operation is incidental and generates less than $20,000 in gross receipts, it may be covered by endorsement which waives the exclusion with respect to that operation.
2.3 EMPLOYEE COVERAGE – The policy may be endorsed to provide for up to 60 months of employee labor (additional premium applicable). Medical Payments to employees may be increased for an additional premium.
CAUTION: Agents should be aware of the minimum requirements before state law requires workers compensation.
2.4 FIRE LEGAL LIABILITY – Protects tenants for damage caused to rented property by their negligence, $50,000 Limits provided.
2.5 DAMAGE TO PROPERTY OF OTHERS – Regardless of an
insureds legal liability we pay for property of others damaged by
an insured, or we repair or replace the property to extent practical
with like kind and quality.
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2.6 MEDICAL PAYMENTS TO OTHERS – We pay the necessary medical expenses if they are incurred or medically determined within three years from the date of an accident.
2.7 MEDICAL PAY TO EMPLOYEES – Under exclusions P,. (bodily injury to a farm employee of an insured), if it occurs in the course of employment by the insured is deleted and coverage provided when a limit of coverage and a premium is shown on the declarations.
RULE III OPTIONAL ENDORSEMENTS
3.1 MEDICAL PAYMENTS FOR NAMED INSURED – This endorsement provides reimbursement for medical and funeral expenses of the named insured and members of his family, if:
a) named in the declarations and an additional premium is paid, and
b) the injuries are the direct result of an accident, and
c) the injuries occurred in connection with the farming activities incidental to the operation of the farm premises.
d) this coverage is excess, and subject to a mandatory deductible of $100 per person.
e) the insured must be at least 10 years old but not over 70 years old.
3.2 RENTAL PROPERTY ENDORSEMENT Residential – Residential property rented to others is considered business property and excluded from the definition of premises. This endorsement waives this exclusion for the insured, allowing coverage for the rented residential property under the Farm Liability Coverage policy. Coverage may be provided for up to four (4) rental units.
3.3 LIVESTOCK EXCLUSION ENDORSEMENT – By request this
endorsement will apply to the Farm Liability policy. No coverage
will be provided for bodily injury or property damage caused by
livestock, owned by, or in the care, custody or control of the
insured. A 20% credit from the base liability premium will apply.
3.4 PERSONAL INJURY ENDORSEMENT – This endorsement
extended Liability to Public coverage to include personal injury, as
defined in the form. This endorsement may only be used for non-
professional insureds that are of good integrity and reputation. The
following is a list of those who are not eligible for personal Injury
coverage.
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1) All politicians and labor leaders
2) Anyone whose name is in the public limelight such as, but not limited to:
a) Public lecturers
b) Actors or actresses
c) Professional athletes
d) Broadcasters or telecasters
3) Newspaper reporters, editors or publishers
4) Professionals, such as, but not limited to:
a) Architects or engineers
b) Psychiatrists – psychoanalysis
c) Stock brokers
d) Lawyers and attorneys
e) Osteopaths or chiropractors
3.5 OWNER OCCUPIED LANDLORD’S LIABILITY
ENDORSEMENT – This endorsement may be used when the
property owner leases the farm to a tenant, and has no interest
either directly or indirectly in the operation of the farm. The owner
may continue to live on the farm. The owner may be eligible for a
35% credit from the farm liability base rate.
3.6 NON-OCCUPIED LANDLORDS LIABILITY – This
endorsement may be used when the owner leases the farm to a
tenant, and has no interest in the operation of the farm either
directly or indirectly. The owner may be eligible for a 50% credit
from the farm liability base rate. This endorsement does not
provide any personal acts coverage.
3.7 HOME DAY CARE ENDORSEMENT – This endorsement
provides liability to the Public and Medical Payments to the public
for day care provided by an insured. The coverages provided by
the endorsement apply only if
a) the home day care service is regularly provided by an insured person,
b) the insured person is compensated for providing the home day care service to any one child;
c) the home day care service is primarily conducted on the insured premises,
d) the number of children, other than children of an insured person, receiving home day care service does not exceed (4) at any time.
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3.8 RECREATIONAL VEHICLE ENDORSEMENT – This
endorsement is limited to providing liability to Public coverage,
and Medical Payments to Public coverage to apply to bodily injury
or property damage arising out of the ownership, operation,
maintenance, use, loading or unloading of listed snowmobiles, all-
terrain vehicles or watercraft while off an insured premises.
a) This coverage does not provide any physical damage coverage, uninsured motorists, or underinsured motorists coverage,
b) M.V.R. on all operators is required. Submit: full name including middle initial, and the person’s date of birth,
c) The premium is fully earned when the coverage is issued.
3.9 MILK CONTAMINATION ENDORSEMENT – This endorsement provides bodily injury, property damage, and product coverage arising out of damage the insured’s contaminated milk causes to others. A $1,000.00 deductible applies. (Full coverage may be purchased for a premium of $75.00 annually).
3.10 HUNTING AND FISHING ENDORSEMENT – This
endorsement provides bodily injury, property damage, and medical
payments when an insured allows these activities on the premises.
The gross receipts may not exceed $5,000 in any calendar year. If
receipts are over $5,000, a Commercial General Liability policy
may be written.
3.11 CUSTOM FARMING ENDORSEMENT – This endorsement
provides coverage for custom farming when receipts for this
activity exceed $5,000. For higher limits, refer to the rate page.
3.12 WATERBED LIABILITY ENDORSEMENT – This
endorsement provides liability coverage to the tenant for property
damage arising out of the insured’s ownership or use of a waterbed
on the insured premises.
3.13 ADDITIONAL INSURED (LIMITED) – Provides liability to
additional named insureds, the additional named entity’s coverage
is limited to the operation, maintenance, or use by the described
named insured.
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3.14 NON-OWNED AUTO LIABILITY – Provides coverage for any
auto that is not owned , borrowed, or hired by the insured.
premium is 1-3 employees $25.00, 4-10 employees $35.00.
3.15 HIRED AUTO LIABILITY – Provides coverage for autos
leased, hired or borrowed by the insured. Premium is $20.00 per
vehicle.
3.16 UNINSURED AND UNDERINSURED IMPLEMENT OF
HUSBANDRY COVERAGE – This coverage is
available on the farm liability policy. It provides coverage to an
insured for damages they are legally entitled to recover from the
owner or operator of an uninsured and underinsured vehicle of
husbandry because of bodily injury
1. sustained by an insured; and
2. caused by an accident.
The owner or operator’s liability for these damages must arise out of the ownership, maintenance or use of the uninsured and underinsured vehicle of husbandry.
3. Uninsured and Underinsured vehicle of husbandry
means an implement that is not subject to motor vehicle
registration.
4. Each vehicle desiring Uninsured and Underinsured
coverage must be identified by year, make and model.
(Example - 1996 Mack 800 single axle truck with attached
fertilizer box).
RULE IV APPLICATION COMPLETION
4.1 Pertinent Information
a) Full name of the insured
b) Current mailing address of insured
c) Legal description of property
List all properties and acreage in each.
d) Indicate limits of coverage desired
e) Answer all questions on the application
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RULE V BINDING AUTHORITY
5.1 The agent may bind risks
a) Recreational vehicles and watercraft when the M.V.R. is clear. (This excludes tenant policies).
b) There are no vicious dogs.
RULE VI UNACCEPTABLE RISKS
6.1 The agent shall not offer coverage; if.
a) An insured has had more than two claims in the past three years.
b) They have had a dog bite claim.
c) Any insured who has a mean or vicious dog (specifically Pit Bulls, Dobermans, Rottweilers,
Pyrenees). We shall be notified should the insured
obtain any dog during the policy period. When the
agent is aware of a dog on the premise you must
contact the company immediately.
d) Any insured who has poorly maintained fences.
e) Any insured who poorly maintains his/her equipment. (specifically removes guards, improper lights, no slow moving vehicle signs, etc.).
f) Any insured whose overall premises' housekeeping is poor (weeds and/or trees and brush around buildings).
g) Any insured that you could not recommend or who has a poor character reference.
h) An insured engaged in custom farming if gross receipts exceed $30,000.00 annually. Receipts over $30,000.00 require a Commercial Policy.
i) Any insured engaged in a business activity where gross receipts exceed 25% of their total farm income or $20,000.00, whichever is less.
j) Anyone under named person’s medical coverage with medical histories, involving bad backs, hernias, and lung disease.
k) Any rental property that does not have functioning smoke detectors.
l) Any insured who has been cancelled or refused
coverage by a proper carrier.
m) Exotic animals, reptiles, aviary and fish, “Exotic”
is not native to the United States.
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6.2 UNACCEPTABLE BUSINESS ACTIVITIES
a) Bulldozing
b) Custom butchering
c) Archery ranges
d) Miniature golf courses, golf driving ranges
e) Tennis/handball shuffleboard courts
f) Hayrides
g) Horse boarding, racing stables
h) Rental or horse riding
i) Sawmills
j) Swimming for a charge
k) Custom spraying
l) Hoof trimming and horse shoeing
m) Dance studios
n) Exercise classes
o) Day care (exceeding 4 children)
p) Dog kennels
q) Machinery rental
r) Skeet or trap shooting
s) Tree trimming
t) Livestock dealers
u) Manufacturing
v) Auctioneers
w) Picnic grounds for a fee
x) Fruit orchards open to public
y) Rock quarries
z) Petting zoos
aa) Paintball operations
6.3 A COMMERCIAL POLICY – may be available on some of the above risks. Contact the commercial underwriter before binding.
6.4 LIABILITY DEDUCTIBLE – Circumstances may dictate that to provide coverage on some risks, a liability deductible is necessary. Deductibles may be requested from $1,000.00 to $10,000.00. Contact Home Office for availability and rate.
6.5 DEDUCTIBLE CREDITS: COMPANY OPTION
AMOUNT DEDUCTIBLE CREDIT
$ 1,000.00 5%
5,000.00 10%
10,000.00 15%
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COMBINED SINGLE LIMIT
FARM LIABILITY RATE SCHEDULE
Basic Coverages
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Public & Employer’s Liability Including
$1000 Med Pay and $500 PDP
Limits of Liability 100,000 300,000 500,000 1,000,000___
Initial Farm Residence up to 160 Acres
Including 1 man-month of employee labor... 154.00 187.00 226.00 275.00
Acreage Over 160 Acres (Per Acre)……… .11 .14 .17 .20
Acreage Over 1,000 Acres (Per Acre)……. .03 .04 .05 .06
Increased Limits – Med Pay to Public:
$ 2,000 limit add……………………. 9.00 9.00 9.00 9.00
$ 5,000 limit add……………………. 18.00 18.00 18.00 18.00
$ 10,000 limit add……………………. 28.00 28.00 28.00 28.00
Increased Limits – PDP:
$ 500 limit add……………………. 3.00 3.00 3.00 3.00
$ 1,000 limit add……………………. 7.00 7.00 7.00 7.00
$ 5,000 limit add……………………. 12.00 12.00 12.00 12.00
$ 10,000 limit add……………………. 20.00 20.00 20.00 20.00
$ 15,000 limit add……………………. 25.00 25.00 25.00 25.00
$ 20,000 limit add……………………. 32.00 32.00 32.00 32.00
$ 25,000 limit add……………………. 38.00 38.00 38.00 38.00
Each additional $5,000 add………………. 5.00 5.00 5.00 5.00
Increased Employee Labor:
Up to 6 man-months add………………… 30.00 38.00 48.00 53.00
Up to 12 man-months add………………… 54.00 72.00 85.00 98.00
Up to 18 man-months add………………… 70.00 90.00 108.00 120.00
Up to 24 man-months add………………… 80.00 100.00 124.00 145.00
Up to 36 man-months add………………… 92.00 120.00 146.00 168.00
Up to 48 man-months add………………… 104.00 140.00 170.00 192.00
Up to 60 man-months add………………… 120.00 160.00 192.00 220.00
Increased Limits – Med Pay to Employees:
$ 2,000 limit add…………………….. 20.00 20.00 20.00 20.00
$ 5,000 limit add…………………….. 35.00 35.00 35.00 35.00
$ 10,000 limit add…………………….. 55.00 55.00 55.00 55.00
Deductible: $1,000 deductible for milk contamination applies to all policies. Full coverage may be
purchased at a premium of $75.00 annually. (Company Option)
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FARM LIABILITY RATE SCHEDULE
Optional Coverages
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Limits of Liability CSL 100,000 300,000 500,000 1,000,000
Additional Named Insured ………… 7.00 8.00 9.00 10.00
Add’l Interest Insured (Limited) 4.00 4.00 5.00 6.00
Additional Farm Residence………… 8.00 9.00 10.00 11.00
Additional Residence Maintained
by Insured (Cabins)……………… 6.00 7.00 8.00 9.00
Town Residence Occupied by Insured.. 9.00 10.00 11.00 12.00
Residential Rental Prop. End.
Limitations: a) 2 units/premises 35.00 43.00 50.00 55.00
b) 4 units/premises 45.00 54.00 62.00 68.00
Custom Farming
Not over $10,000.00 Gross Receipts 29.00 31.00 38.00 45.00
Not over $20,000.00 Gross Receipts 39.00 42.00 50.00 58.00
Not over $30,000.00 Gross Receipts 45.00 50.00 68.00 86.00
Custom Feeding 100 head or less 30.00 35.00 40.00 50.00
Each additional 100 head Add 8% to rate
Employee Occupational Liability
Clerical …………………………… 3.00 4.00 5.00 6.00
Salesman …………………………. 5.00 6.00 7.00 8.00
Teacher(Coaches, Laboratory, Shop) 10.00 11.00 12.00 13.00
All Other Teachers………………… 7.00 8.00 9.00 10.00
* NOC……………………………… 5.00 6.00 7.00 8.00