3 main differences between farm types
- products grown/produced
- types of specialized machinery/equipment used
- types of buildings required
4 coverages provided by most farm policies
- dwelling building/personal property
- major outbuildings/contents
- machinery/equipment
- general liability
Types of farm structures that might be insured under “major outbuidings and contents”
- corrals
- fences
- yard lights
- fuel stands
buildings excluded on farm policies
- buildings/structures used in whole or part of manufacturing or commercial purposes
- windmills, wind chargers, and their towers
Deferred Loss Settlement
designed by insurers to avoid paying full amount of insurance purchased when an outbuilding is not replaced.
insured receives 50% at the time of loss, and 50% after replacement of building
3 requirements of insured before they receive full balance of replacement of an outbuilding under the deferred loss settlement
- building repaired/replaced with one designed for the same purpose
- repair/replacement completed within 9 months of loss
- repaired/replaced within 200 feet of building which was destroyed
3 types of property not covered under Contents on a farm policy which require separate coverage
- threshed grain
- artificial insemination tanks
- fertilizers/herbicides/pesticides
6 exclusions to farm machinery
- electrical currents other than lightning (except when resultant damage of fire/explosion)
- mechanical breakdown (except when resultant damage of fire/explosion)
- used for logging, forestry, brush cutting, clearing, sawmill operations.
- tires or tubes (unless caused by fire, windstorm, theft)
- engaged in custom farming
- wear, tear, deterioration, latent defect, insects, rodents, vermin
- loss/damage to data
- resulting from coupling/uncoupling operations
what is custom farming?
the use of your farm machinery or equipment for others away from your farm premises, for compensation. (Occasional farm work you do for others in exchange for their farm work for you will not be considered custom farming)
Who might be considered a farm employee? (3)
- Those who are hired/paid to perform duties connected with farming activities outside of insured’s dwelling on a parttime/seasonal/fulltime basis.
- Those engaged in farm related work on behalf of the insured in a neighbourly exchange of assistance. (farm employee helping out another farmer)
- volunteers
Farm Liability: There is worldwide coverage for loss or damage arising out of:
- goods/products made/sold by insured
- activities of insured who is away for a short time on business related to their farm
- personal/advertising injury the takes place through the internet or other electronic means of communication
The insuring agreement promises to pay on behalf of the insured all sums which the insured shall become legally obligated to pay as compensatory damages:
-because of bodily injury
or
-property damage caused by accident
4 types of motor vehicles insured by a farm policy
- utility/boat/camper/home trailer
- Recreational motor vehicle (ATV, golf cart, snow vehicle)
- crawler/farm type tractors and farm implements
- any equipment designed for use principally off the public roads (vehicles not subject to motor vehicle registration)
The employers liability rider will respond only when the insured is shown to be legally liable for the injuries sustained by the employee. give 3 examples of this.
- injury results due to improper tools/equipment provided to the employee to use.
- injury results from incorrect directions on how to perform a task
- injury results from a task assigned to an employee which could not have reasonably been performed by only one person.
identify 4 sources of loss excluded as environmental liability
- smoke from grass fire
- vapours from hog/dairy/poultry operations
- contamination to rivers/lakes/streams/underground water sources
- chemical drift during spraying of field crop chemicals
brokers are generally prohibited from binding coverage on the following types of farm risks:
- vacant/unoccupied
- specialized buildings
- outbuildings under construction
- risks declined/cancelled by another insurer
- risks with prior losses
