Define farming.
The ownership and maintenance and use of premises for the production of crops, or the raising or care of livestock, and all other related operations. Also includes the operations of roadside stand or farmers markets used principally for the sale of the farmer sown products
This definition encompasses various agricultural activities.
Define Custom farming.
Using your farm machinery or equipment for the purpose of earning compensation on projects away from your farm premises
Occasional farm work you do for others in return for their works for you is not included.
What coverages must be purchased to be eligible for farm package policies?
- Dwelling and personal property
- Major outbuildings and contents
- Machinery and equipment
- General liability
These coverages are essential for comprehensive farm insurance.
What are farm outbuildings and what is excluded?
- Barns
- Silos
- Storage sheds
Excluded:
* Buildings used for commercial/manufacturing business
* Specialty operations
* Windmills or other towers
Understanding exclusions is crucial for proper coverage.
What outbuildings are excluded from the peril of windstorm or hail?
- Fences
- Roof signs
- Corral
- While being built
- Not fully enclosed
- In transit
- Inferior roof coverings
These exclusions highlight specific vulnerabilities in coverage.
What are the outbuilding coverage policy features?
- Scheduled or blanket basis
- Replacement cost available when:
- less than 15 years old
- made of new materials
- on permanent foundation
- used for original purpose
These features determine how coverage is applied.
Explain the deferred loss settlement clause.
If outbuilding is damaged and farmer may not want to replace it because the use of it is no longer profitable, client will receive 50% of claim at time of loss, remaining 50% if:
* Building rebuilt for same purpose
* Completed within 9 months
* Replaced within 200Ft of original building
This clause provides flexibility in claims.
Describe Fire Department Charges coverage.
When neighboring fire departments charge clients for response, limited coverage provided and no deductible
This coverage addresses costs incurred during fire emergencies.
Explain coverage for outbuilding contents.
Specialized contents require their own policy:
* Grain
* Chemicals
* Artificial insemination tanks
Specific items may need tailored coverage.
What conditions are found in Farm Machinery Loss of Use coverage?
When insured machinery is damaged by an insured peril, up to $1,000 may be used to rent similar machines to complete work already underway
This coverage helps maintain productivity during repairs.
Who is insured under a farm liability policy?
- Named insured
- Household members (spouse, relatives under 21)
- Volunteers engaged in farm-related work
- Employees (residence and farm employees)
Understanding who is covered is essential for liability management.
What is the farm liability coverage territory?
Anywhere in the world, lawsuit must be brought back to Canada or the continental United States
This defines the geographical limits of liability coverage.
Describe coverage for owned and non-owned recreational vehicles.
- Non-owned recreational vehicles are insured whether operated on or off the premises
- Owned recreational vehicles are insured only when operated on insured premises and not subject to motor vehicle registration
- Owned golf carts are insured while being used off premises
This coverage differentiates between types of vehicle ownership.
When should brokers recommend Employers Liability coverage?
When employees are not insured by worker’s compensation laws. This coverage will respond to legal actions when employees are injured through the negligence of the insured
This coverage is crucial for protecting against legal claims.
Describe Voluntary Compensation Rider.
This coverage will provide benefits to employees injured while performing duties when the insured is not legally liable
This rider offers additional protection for employee injuries.
Describe the Environmental Exclusion.
Removes all coverage for any damage caused by a pollutant of any type, including chemicals discharged from aircrafts, noxious vapors or smoke, or pollution of river ways or land
Coverage restored for 2 pollutants:
* Heat or Smoke or fumes from hostile fire
* Accidental chemical drift from chemical spraying operations other than by aircraft when damage is detected within 120 hours of spraying operations
This exclusion is critical for understanding environmental liability.
What are the underwriting rules for farm insurance?
Requires written application often with pictures and diagrams showing distances between buildings
These rules help assess risk and determine coverage.
