All Terms and Subject Flashcards
What is HO-5 Comprehensive Form
Open peril for structures and personal property
What is HO-3 Special Form
Open peril coverage for dwelling and other structures.
Named Peril coverage for personal property.
Open Peril Approach
Covers damages caused by all perils except those specifically excluded.
HO-3 and HO-5
HO-8 Modified Coverage Form
Named Peril Coverage Covers fewer perils Covers at ACV Considers fair market value of home Cheaper
HO-6 Unit Owners Form
“Condo Form”
Covers owner’s belongings
Covers all finished surfaces of the individual condominium unit.
HO-4 Contents Broad Form
“Renter’s Insurance”
Against all broad form perils
Only covers personal property.
HO-2 Broad Form
Named Peril Policy
Insures against all 17 broad form perils
Broad Form Endorsement
Vandalism or malicious mischief
Theft
Falling objects
Weight of ice, snow, or sleet
Damage from steam or hot water system
Accidental discharge or overflow of water or freezing
Artificially generated electrical current
Extended Coverage
Covered: Windstorm, hail, explosion, riot or civil commotion, vehicles, aircraft, smoke
Named-Peril Approach
Covers losses caused only by perils named in policy.
Commercial Lines
For possessions included for business or corporate use.
Personal Lines
For possessions included for personal use.
Monoline Policy
An insurance policy that covers only one risk or type of risks
Line of Coverage
A particular risk or groups of risks covered by an insurance policy.
Negotiation Techniques
Humor, questions, demonstration, pleasant surprise, diversion, silence, have a back-up offer ready, flexibility.
Prior to Negotiations
Complete investigations
Complete estimate
Know circumstances
Be clear about objectives
Understand possible obstacles
Know maximum about insurer willing to pay
Have an idea of minimum amount claimant will accept
Settlement Options
Full release Scheduled Release Partial Release Advanced Payment No Release Structured Settlement
Dispute Resolution
Arbitration Mediation Appraisal Declaratory Judgement Action Litigation
Recorded Statements must include
Introduction Statement (including convo recorded) State names and locations of everyone Age and address of interviewee
Body Where, when, how loss occurred Description of injuries Where started where headed What happened after Explain interruptions Stay objective Avoid excessive empathy Don't discuss insurance or settlements
Conclusion
Interviewee must verify he understood all questions. Interviewee states again convo is recorded.
Written statements should include
Introduction
Identify interviewer and interviewee
Date, time, and place of interview
Body
Where, when, and how loss occurred
Description of injuries
Conclusion
Interviewee verifies in own handwriting
Signature below on right side
Witness signs left
Claims Investigation
Liability Claims Critical Evidence Official Reports Other Evidence Written Statements Recorded Statements
Investigation: Property Claims
Inspect damages Take photos Interview claimant and witnesses Review police report Consult w/ professionals
Determine Insurer’s Liability
Was policy active at time of loss?
Does claimant have insurable interest?
Does policy cover type of damage or injury being claimed?
Is there a history of similar claims?
Will any other policies cover loss?
Has insured met all requirements of the contract?
Claims Process Steps
Acknowledge claim Establish commmunication Prepare necessary paperwork Determine insurer's liability Investigate the losses Determine time and cost of repairs Apply all policy coverages and provisions Negotiate Settlement Prepare final report.
General Damages
Compensatory damages are determined by the court and awarded for intangible, emotional losses that are not quantifiable.
Special Damages
Compensatory damages awarded for tangible losses with a quantifiable value.
Diminution of Value
Total amount of all damages resulting from an occurence.
Compensatory Damages
Money awarded for tangible and intangible economic loss.
2 types:
Special and General
Categories of Harm
Physical
Financial
Physical and Financial
Emotional and/or Reputational
Types of Liability Policy Limits
Single
Split
Aggregate
Dangerous Instrumentality Doctrine
Holds a party strictly liable for damages caused during inherently dangerous activity.
Strict Liability
Holds a party 100% liable for damages when the activity or instrument they are performing is inherently dangerous.
Res Ipsa Loquitor
Circumstances of the injury make it obvious that the defendant is negligent, no proof is needed.
Defense to Claim of Negligence
Assumption of Risks
Contributory Negligence
Comparative Negligence
Vicarious Liability
The transfer of negligence from one party to another
Liable
Obligated according to law, responsible
Coinsurance Penalty
Actual Insurance / Coinsurance Requirement = Penalty
Coinsurance
Encourages the insured to purchase an adequate amount of coverage, typically at least 80% of a property’s value.
Requires 80% of property’s value
Types of Deductibles
Fixed
Percentage
Franchise
Constructive Total Loss
When the cost of repairing damaged property is higher than the property’s current value.
Actual Total Loss
When property is completely destroyed and unrepairable
Total Loss
When insured property is damaged so badly that it is not worth repairing.
Partial Loss
When insured property is only partly damaged, and repair cost fall within the policy limit.
Valued Policy
Agreed Value or Guaranteed Value
Valuation method that assigns a set value to each insured item.
Value determined prior to insurance policy.
Obsolescence
When something is no longer used or wanted, despite being in good working order.
Characteristics of Replacement Cost
No depreciation
Based on replacement cost at the time of loss
Higher premiums
Broad Evidence Rule
Takes into consideration any evidence available to determine value
Accumulated Depreciation
Annual Depreciation x Age =
Annual Depreciation
Replacement Cost / Item’s Useful LIfe
Actual Cash Value
Valuation method that takes into account and item’s depreciation
Replacement Cost - Depreciation =
Methods of Valuation
Actual Cash Value
Replacement Cost
Stated Amount
Agreed Value
Subrogation
The transfer of rights that allows the insurer to recover its losses after it has indemnified a policyholder.
Insurance Adjuster
Represents insurer responsible for evaluating the circumstance of a claim.
Claims Process
Filing a claim Acknowledgement Investigation Evaluation Adjustment
Claim
A demand for payment in accordance with the terms of an insurance policy.
Indirect Loss
An economic loss that results from a direct loss.
Direct Loss
Physical harm to tangible property.
Damages are covered:
Proximate Clause
If caused by a covered peril.
If their proximate cause was a covered peril.
Original Occurrence
Causes damage that then leads to more damage.
The proximate cause of all resulting losses.
Proximate Cause
When there is an unbroken chain of events between an occurrence and a loss, then the occurrence is the proximate cause of the loss.
Legal Hazard
Increased chance of loss due to legal action.
Physical Hazard
Physical conditions that increases the chance of a loss.
Morale Hazard
Takes place when insured acts differently because of the comfort that insurance protection provides.
Moral Hazard
Results from policy holder’s deliberate decision.
Involves reckless behavior because of financial security offered by insurance.
“Behavioral Hazard”
Estoppel
Legal principle that prevents an insurer from denying coverage if the insured has reasonably come to believe that he has such coverage, based on insurer’s practices.
Concealment
Deliberately withholding relevant information.
Warranties
Promises or guarantees that certain conditions will be met.
Specific Limits
Limits that apply to one specific type of property.
Blanket Coverage
“Blankets” more than one property, type of property, or coverage under a single limit.
Binder
Temporary coverage for an insurance applicant until the policy is issued.
Risk Retention
Acknowledging the risks and preparing to handle unexpected losses that may occur.
Risk Management Techniques
Avoidance
Reduction
Transference
Retention
Coverage D
Loss of Use
For indirect losses that result from direct losses.
Coverages for Loss of Use
Additional Living Expenses (ALE)
Fair Rental Value (FRV)
Prohibited Use (a.k.a Civil Authority)
Additional Living Expenses
Pays increase in expenses needed for the insured to maintain normal standard of living after a covered loss.
Only covers costs that exceed the insured’s normal living expenses.
Fair Rental Value
Indemnifies insured for lost rent if a tenant has to move out due to covered damages.
Pays lost rental income until unit is habitable.
Only pays net loss: subtracts any expenses that do not continue while the tenant is gone.
Coverage does not include losses due to cancelled lease or agreement.
Only pays up until the unit is repaired, not until the insured finds a new tenant, if applicable.
Civil Authority Coverage
Pays for ALE and FRV when a civil authority prevents the insured from using the home.
Coverage D - Limits
Measured in time rather than dollars.
ALE paid until premises is repaired or replaced, or until the insured’s household can settle elsewhere.
FRV is paid for the shortest amount of time needed to restore the rented area to rentable condition.
Civil Authority pays until access to the home is restored up to a maximum of two weeks.
Allow ALE and FRV to extend beyond the policy expiration date if needed.
Loss of Use Deductibles
ALE and FRV subject to the policy deductible.
Civil Authority NOT subject to any deductible.
Debris Removal
Additional 5% of policy/coverage limit.
Reasonable Repairs
Coverage reimburses homeowner for expenses to protect property from further damage.
Loss Assessment
For condo owners under HO-6
Pays when condo association charges an assessment after a loss.
Ordinance or Law
Pays up to 10% of the Coverage A limit as additional insurance.
Building Additions and Alterations
For HO-4 and HO-6 only.
Covers structural alterations made at renter’s or unit owner’s own expense.
Exclusions to HO Property Coverage:
Ordinance or law, earth movement, water damage, off-premises power failure, neglect, war, nuclear hazard, intentional acts, mechanical breakdown.
Deductible
If there are two or more deductibles under a policy, the highest deductible amount applies.
Suit Against Us
Insured cannot take action against an insurer unless the insured has fully complied with all terms of the policy and starts the action within two years of the date of loss.
Our Option
Insurer can repair or replace any part of a damaged property with material or property of like kind and quantity, as long as they give written notice within 30 days of receiving proof of loss.
Loss Payment
Clarifies how, when, and to whom a claim will be paid.
No Benefit to Bailee
Policy will not pay a third party who has custody or control of the insured’s property, even if it is with the insured’s granted permission.
Recovered Property
After the claimant has been indemnified, if either party recovers any property involved in the claim, they must tell the other party about it.
Volcanic Eruption Period
One or more volcanic eruptions that occur within a 72-hour period are considered one volcanic eruption.
Section 1 Conditions
Interest, deductible, duties, concealment, loss settlement, pair or set, appraisal, other insurance, suit against us, our option, loss payment, abandonment, mortgage, no benefit to bailee, nuclear hazard, recovered property, volcano, policy period.
Section II Conditions
Limit of Liability, Severability, Duties After “Occurrence,” Duties of an Injured Person, Claim Payment, Suit Against Us, other insurance, policy period, concealment or fraud
Section I and II Conditions
Subrogation, cancellation, nonrenewal, liberalization, waiver or change, assignment, death
Insurance to Value Requirement
If home is insured at 80% of value or more:
Replacement Cost
If home is insured at less than 80%: policy pays the higher of:
ACV
or
Replacement Cost minus the insurance to value requirement.
(Insurance Limit / 80% of property value) x Covered Damage
Coverage A
Dwelling, attached structures, material located near it
Coverage B
Other detached structures
Coverage C
Personal Property (Contents)
Coverage D
Loss of Use
Liability Coverage can pay for:
Medical Bills Lost Wages Pain and Suffering Inconvenience Property Damage
Coverage E - Personal Liability
Pays for bodily injury and property damage to third party if insured is found negligent.
Applies even if the insured’s property causes a third party damages.
Never pays the insured.
$100.000 minimum coverage
Pays for insured’s legal defense fees
Insurer pays fees all the way to the end of a lawsuit, even if limit is exceeded.
Insurer has the right to settle damages with the claimant however it wants.
Coverage F - Medical Payments
No fault coverage.
For medical expenses incurred by third party due to an accident on insured’s premises.
Only necessary, reasonable medical charges.
$1,000 minimum limit
Section II - Additional Coverages
Property of Others
First Aid
Claims Expenses
Loss Assessment
Coverage E Exclusions:
Bodily injury and property damage to the insured
Bodily injury to persons covered by Workers Compensation Insurance
Damage to property rented by insured, occupied or used by insured, or held in insured’s custody and care
Liability for contracts
Coverage F Exclusions:
The insured person
Anyone who lives on residence premises regularly
Anyone eligible for Workers Comp or Disability for the occurrence.
Harm to a resident employee who is not in the course of employment, or is not at premises at time of occurrence.
Coverages E and F Exclusions:
Intentional or malicious harm to third party by insured
Harm from war
Disease transmitted from insured to third party
Sexual molestation or abuse by insured
Drug, use, sale, manufacture, possession
Exclusion relating to vehicle use:
Harm or damage caused by insured’s automobile use
Exceptions: vehicles for property maintenance, handicapped persons, or those in storage. Recreational vehicles are covered under certain conditions.
Aircraft
Watercraft
Excluded from HO Liability Coverage:
Third party losses due to insured’s business
Third party losses from insured’s failure to render business services
Liberalization
Applies to changes made up to 60 days before the policy inception
Payment of Claim - Coverage F - Medical Payments to Others
Coverage F is voluntary coverage: if a claim is paid, it is not admission of insurer’s liability.
Lawsuit Against Insurer:
All Section II terms must be met
No one can join insurer in suit against insured
No suit pertaining to Coverage E can be brought until obligation of insured is agreed to
Homeowners Endorsements (typically):
Sinkhole Collapse Sewer Backup Earthquake Hurricane (coverage can be removed) Ordinance or Law Personal Property Replacement Cost Inflation Guard Scheduled Personal Property
Changing Limits and Valuation
For increased premium, endorsements can add:
Replacement Cost valuation rather than ACV
Inflation Guard to automatically increase limits
Scheduled Personal Property, such as jewelry, furs, collectibles
Georgia Notice of Cancellation or Non-renewal
During the first 60 days of policy: at least 10 days prior to cancellation.
After 60days: at least 30 days prior to cancellation
For non-payment of premiums: at least 10 days prior to cancellation
Notice of Non-renewal: at least 30 days before policy expires
(Georgia) When cancelling or non-renewing:
Insurer must:
Deliver notice in person or by first class mail
Refund any unearned premiums
Provide information about the Georgia FAIR Plan
Georgia Cancellation / Non-renewal
Must be for specific, approved reasons:
Non-payment of premiums
Fraud or misrepresentation
Violation of the terms or conditions of the policy
A significant change in the level of risk which increases the likelihood of a loss
Georgia Personal Liability
Covers the insured for any liability to someone else on or off the premises
Georgia Premises Liability
Only covers the insured for liability to someone else on the property’s premises
Georgia Mobile Home Coverage
Can be covered by endorsement or stand-alone policy
Must be used primarily as a residence
Endorsement covers: mobile home and any additions, items permanently installed or attached to the home
Mobile home policy (MHP): HO-7
Georgia Watercraft Policy
in addition to HO policy:
Covers physical damage and liability exposure
Eligible property: owned watercraft, trailers, outboard motors, watercraft accessories
Covered craft must stay within the US, its territories, Puerto Rico, or Canada, and within 12 miles of the coast.
Personal use only
Excludes: air-propelled crafts, modified crafts, experimental crafts, hovercraft, submarines
Georgia Watercraft Policy Structure
Part A - Liability
Part B - Medical Payments
Part C - Uninsured Boaters
Part D - Coverage for damage to your watercraft
Additional coverages under Part D:
Salvage expense, towing and assistance expense, personal effects
Part E - Insured’s duties after an accident or loss
Part F - General provisions
Georgia Watercraft Policy Conditions
Lay-up Period : No coverage if the watercraft is used during the lay-up period specified in policy; unless: the insurer consents in writing, the insured uses it in an emergency and reports the situation within 10 days.
Reduces premium
Total Loss Settlement
In case of total loss, the insurer considers the property’s physical condition and depreciation to determine ACV
Insured pays the difference if the replacement property has a higher value than the original property.
When more than one policy can cover the insured’s liability, the watercraft policy:
pays amount equal to its share of the total amount of insurance available
pays on an excess if: the insured is operating a non-owned watercraft ,the watercraft is being transported on land
Dwelling POlicy
For persons not eligible for homeowners insurance
Corporation not eligible for homeowners insurance
Persons or corporations who do not need HO options
Property only, not liability (unless an endorsement is added)
Dwelling Policy Property Types
Single-family homes
1-4 unit dwellings (duplexes, four-plexes, etc.)
No more than 5 occupants
Mobile homes, if permanently installed
Incidental business risks, if insurer allows
DP-1 “Basic Form”
Named-peril coverage
Covers only fire, lightning, internal explosions
DP-2 “Broad Form”
Same perils as the Basic Form, plus many more
+Extended Form Perils
+Broad Form Perils
DP-3 “Special Form”
If a peril is not excluded, it is covered
Named-peril coverage to personal property.
Includes all the perils that the DP-2 “Broad Form” covers
DP-3 Exclusions
General exclusions
Settling, cracking, shrinking, bulging of patios, foundations, etc.
Damage from birds, insects, vermin, domestic animals
Wind or hail damage to antennas, lawns, trees
Ice or snow damage to awning, fences, outdoor structures, foundations
theft of anything not part of structure
Pollutant damage
Gradual or expected loss from wear and tear, marring, or deterioration
Mechanical breakdown
Inherent vice: a characteristic of an item that causes it to damage or destroy itself
smoke form agricultural or industrial operations
Dwelling Policy Sections
Coverage A B C D E Additional Coverages Exclusions Conditions Endorsements (If any)
Coverage A - Dwelling
Principal dwelling
Attached structures: garages, apartments, etc.
Service machinery: furnace, A/C compressor, etc.
Not included: construction tools, damage to land itself
Coverage B - Other Structures (Dwelling policy)
Limit: 10% of Coverage A limit (per claim)
Under DP-1, the 10% is included as part of Coverage A limit
In DP-2 and DP-3, the 10% is added to the Coverage A limit
Coverage D - Fair Rental Value - Dwelling
Pays rental income lost due to damage
Coverage E - Additional Living Expenses - Dwelling
For the increase in the insured’s living expenses when a covered peril makes the dwelling uninhabitable.
Automatically included in DP-2 and DP-3
Not included in DP-1
Personal Auto Policy (PAP)
A policy that combines liability insurance with other optional coverages.
PAP - What is covered?
Will indemnify for:
Property damage
bodily injury
legal defense
Will not pay punitive damages
Insurer must defend policyholder against liability claims, in or out of court
PAP Sections
Declarations Part A - Liability Part B - Medical Payments Part C - Uninsured Motorist Part D - Coverage for Damage to Auto Part E - Duties after an Accident or Loss Part F - General Provisions Endorsements
Auto Insurance Deductible
Fixed on per claim basis
Typically only applies to collision and comprehensive coverages
Bodily Injury (Auto Insurance)
Does not include mental distress or psychological trauma
Covered Auto
Car specified on declarations page
Newly acquired auto
Trailer the insured owns
A temporary substitute for car or trailer listed on dec page due to:
breakdown, repair, servicing, loss, destruction
Newly Acquired Auto
my not be covered under another insurance
may not be sued for the transport of goods and materials
automatically get the broadest coverage provided to any one car listed in policy
Adding Newly Acquired Autos
Reporting (according to the standard PAP)
insured has 14 days to report newly acquired auto
Most states and insurers actually require that your report any new auto within 10 - 30 days.
Comprehensive and Collision coverage:
Can be added within 4 days of getting new car
Automatically applies for first 4 days with $500 deductible
Auto Insurance Medical Payments
Pays for covered medical expenses for up to three years from the date of an accident.
Part A - Auto Liability
Establishes
Pay liability costs, up to policy limits
Covers injury or damage caused by covered auto or any car the insured drives with permission
Settle or defend liability lawsuits
Part A - Auto Liability Limits
One Person’s Injury/Max for all Injuries/Property Damage
Primary and Secondary Coverage
Coverage is “primary” if it involves a car the insured owns
“Secondary” if it involves a car the insured does not own.
Part A - Auto Supplementary Payments
Assist policyholder with a variety of accident-related expenses.
Not subject to liability limits
May include: Lost wages - up to 250/day Expenses due to requests for documents Bail bonds - up to 250 Accrued interest after a judgement Premiums on appeal bonds and attachment bonds
Part A - Auto Exclusions
Does not include:
intentional damage or injuries
property owned or being transported by the insured
damages incurred under the scope of employment; except domestic employees ineligible for worker’s comp.
properties rented to or used by insured
hired vehicles
company-owned business vehicles
damages or injuries caused while repairing, servicing, parking, or storing vehicles
vehicles taken without permission
damages or injuries arising from or related to a flying car
Auto No-Fault Insurance
Designed to indemnify the insured for his own injuries, regardless of fault.
Covers bodily injury only
Mandatory in some states
Part B - Medial Payments Exclusions
Accidents where an insured is occupying a vehicle with fewer than four wheels
Autos rented or leased for hire
Autos used without permission
Commercial vehicles covered by a Business Auto Policy
Vehicles located for use as a residence
Injuries sustained under scope of employment (if covered by worker’s comp)
Begin only after Personal Injury Protection (PIP) coverage is fully exhausted.
Part C - Uninsured/Underinsured Motorist Coverage
Covers bodily injuries caused by people with insufficient or no insurance
Coverage for physical damage can be added by endorsement
Uninsured Motorist (UM)
Driver w/no liability insurance
Driver whose insurer won’t pay
Hit-and-run driver
Driver who does not have enough insurance to pay for all damages
Exclusions to UM/UIM Coverage
Insured’s own auto that is not listed in the policy
Government vehicles
Off-road vehicles (but only while not on public roads)
Vehicles used as a premises
Covered autos that are rented or used for hire
Cars used without reasonable belief that permission was granted
Part D - Collision Coverage
Pays for damage to insured’s vehicle caused by collision or rollover
Applies even when insured is at-fault
Included “your covered auto” and any “non-owned” car the insured is driving.
(unless the insured borrows it frequently: then it is not covered)
Auto Comprehensive Coverag
Theft
hail, water, or flood
Windstorm, fire, vandalism, explosion, earthquake, riot/civil unrest, missiles or falling objects, contact with birds or animals
Part D - Auto Exclusions
Normal wear and tear
Freezing
Mechanical or electrical breakdown
Tire damage
Government or civil confiscation
Losses to non-owned autos taken without permission
Losses involving any racing or speed event or facility
Stereo equipment and electronics (unless permanently installed, then subject to limits)
Personal Injury Protection (PIP)
Covers injuries to the insured et al caused by an accident , no matter who was at fault.
Farm Insurance
Combines both homeowners coverage for personal property and commercial coverage for business assets.
Rancher needs all and additional protection for livestock.
Farm Insurance Policy
Property insurance for dwelling and contents
Scheduled and unscheduled farm personal property insurance
Mobile agricultural machinery and livestock coverage
Farm liability insurance
Eligibility for Farm Insurance
Farmers must live and conduct business on the insured property
Properties not eligible:
Farms that manufacture or process goods
Farms raising race or show animals
Some vacant farm properties
Farm Property Coverage Forms
Cover direct losses to physical property on the insured’s farm.
List the types of property covered
Use attached Causes of Loss Forms to list covered perils
Coverage A - Dwelling Farm
For main dwelling, attached structures, and necessary materials
Not covered: trees, shrubs, plants, or lawns (except with endorsement)
Coverage B - Other Private Detached Structures Farm
Covers private structures not attached to main dwelling
Coverage C - Household Personal Property Farm
Covers theft or damage of personal property
Includes personal property of family and guests staying on the premises
Has a limit of 50% of Coverage A
Sets special limits for some items.
Cover G - Commercial Coverage Farm
Barns, outbuildings, and other farm structures covers:
Barns, silos, and granaries
Pens and Fencing (except for fields and pastures)
Corrals and livestock chutes
Feeding structures
Outdoor masts, towers, and antennae
Farming storage structures
Construction or repair materials kept on or adjacent to these structures
Inland Marine Forms
Two commonly added to farm policies:
Mobile agricultural machinery and equipment form
Livestock Floater
Mobile Agricultural Machinery and Equipment Form
Covers agricultural machines and their tools and equipment
Allows higher limits of insurance than other forms
Scheduled or unscheduled coverage
Requires coinsurance for full coverage to apply
Not covered:
Equipment for sale or on consignment
Machinery used in logging or forestry
Livestock Floater
Covers horses, mules, cattle, swine, sheep, and goats.
Scheduled or unscheduled
Includes animal injured or killed while in transit
Provides named-peril coverage.
Requires coinsurance
Farm Property - Causes of Loss Basic Form
Fire, theft, lightning, aircraft, smoke, vehicles, wind, sinkhole collapse, hail, volcanic activity, explosions, loss of livestock by flood, riot, vandalism, loss of livestock by earthquake, civil commotion
Farm Property - Causes of Loss Broad Form
Basic form plus: Falling objects weight of ice, sleet, or snow glass breakage sudden and accidental tearing apart accidental discharge or leakage of water or steam sudden and accidental discharges of electricity collapse electrocution of covered livestock attack of covered livestock (excluding sheep) by wild animal drowning of covered livestock loading and unloading accidents accidental shooting of covered livestock
Farm Property - Causes of Loss Special Form
Exclusions:
Normal wear and tear, or purposeful neglect
rust, corrosion or decay
settling, cracking or shrinking of structures
infestation by rodents, vermin, or birds
mechanical breakdown
disappearance of farm property, unless stolen
voluntary, fraudulent parting of farm property
unauthorized instructions to transport property
vandalism or glass breakage, if vacant 30 days
dishonest or criminal acts by the insured
Farm Liability Insurance
protects the farmer against liability for harm caused to others
Coverage H - Farm LIability
Bodily injury and property damage liability
Covers damage or injury caused by normal business operations
Applies to damages that occur on insured premises
Coverage I - Farm Liability
Personal and advertising injury:
Pays for claims not involving property damage or personal injury
Includes malicious prosecution, wrongful entry or eviction, and libel or slander
Coverage J - Farm Liabilty
Medical payments coverage
Covers medical injuries suffered on farm property or because of farmer’s activities.
Includes medical, dental, hospital, and funeral costs
Farm product Liability
Covers injury or illness caused by eating the farmer’s products
Farm Pollution Liability
Covers pollution damage caused by farm property and operations.
Includes animal waste overflow, chemical spill
Does NOT include chemical over-spray from aircraft (separate endorsement required)
Custom Farming Liability
Covers farmers doing contract work.
Will not apply if a farmer makes more than 5,000 a year as a contractor.
