Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Farm Liability 1  The webinar will begin shortly.  There is no audio at this time.  This presentation is being recorded for your viewing pleasure at a future date.  The attendance and proctor forms are available under ‘Materials’ in the Webinar’s Console to the right.  The PowerPoint presentation is also available under ‘Materials’.  You will receive the course number for your state near the end of class.  Use the ‘chat’ window for questions on the content.  100% Participation in Polling Questions is required to receive credit for this class. Even if you do not intend to receive credit, please participate in the polls.

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Welcome to your Insurance Community University All of you are currently on mute – Un-mute your own system – Telephone Option Select Telephone on your screen Dial in the PIN number so that your number becomes active – Microphone and/or Speaker Option You can use this option if you have a headset that you use with your computer 2 Audio

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Participation & Chat Window You will receive information from the monitor via the ‘Chat’ window. – Please locate window in the control panel Q & A is welcomed during the presentation and at the end of the presentation You will find the question box on your control panel – Write your question in that box and send it to the presenter/organizer The presenter will take those questions in the order submitted 3

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! DOI Requirements When you see a slide with the hand up symbol, touch the “hand” icon on your control panel – Click ONCE only If you do not raise your hand, the monitor will be in contact with you in the chat box If you are in a group, the designated proctor is responsible to make certain you are all in attendance at all times 4 = Hand is down

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Polling Throughout the class we will be conducting periodic polls We need 100% participation on the polls The polls are intended to check participation but also to create discussion topics throughout the presentation 5

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Forms To Complete for CE After class ends – Return attendance form – Proctors – return your form to address address is in chat window or in sent to you today 6

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! DOI Requirements We will file your hours with the DOI after the completion of this webinar and we have received the attendance form. You have 48 hours to return the form You will be sent a Certificate of Attendance/Completion by . Please retain this for your records for five years. 7

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Disclaimer Insurance forms and endorsements vary based on insurance company; changes in edition dates; regulations; court decisions; and state jurisdiction. This instructional materials provided by Insight is intended as a general guideline and any interpretations provided by Insight do not modify or revise insurance policy language. The authors of these materials, Insight Insurance Consultants is a division of Insight Consulting and Management Inc. In providing these materials, Insight assumes neither liability nor responsibility to any person or business with respect to any loss that is alleged to be caused directly or indirectly as a result of the instructional materials provided. Copyright 2010 – 2012 All Rights Reserved Laurie: Marjorie:

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Your Instructor Today Casey Roberts, CIC, AFIS, ACSR President, Laurus Insurance Consulting, LLC

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insight on Farm Liability 10

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! What this class will cover Farm exposures Farm Operations Eligibility ISO / AAIS Farm Liability  Insuring agreement  Unique farm definitions  Exclusions 11

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! What this class will cover Endorsements  Custom Farming  ATV  Farm Employers Liability and Medical Payments  Amendatory Endorsement  Crop Dusting Operations Liability  Limited Pollution Liability 12

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Farm Operations Typically involve  Soil cultivation  Crop production  Poultry / livestock  Roadside stand – on farm premises  Mechanized processing 13

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Farm Liability Exposures Personal Liability Liability farming operations Premises Products Liability Custom Farming Pollution Mobile Equipment 14

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! AAIS / ISO Farm Liability Policy Structure Policy Common Policy Declarations Common Policy Conditions Liability Declarations Liability Coverage Forms Endorsements 15

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Commercial General Liability v. Farm Liability Coverage Forms CGL – broad coverage for commercial ventures Farm Liability – broad personal liability and farming operations 16

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Liability Coverage Choices Commercial General Liability: CG Premises, Operations, Products / Completed Operations Farm Premises: FL Added as endorsement to CGL Personal Liability: FL Added as endorsement to CGL Farm Liability: FL Personal Liability (Coverage H) Farm Operations Liability / Products 17

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Farm Liability Coverage Eligibility Farms that sell products (other than those principally produced by the farm) may require the CGL form Farms that provide commodities for the insured's own processing or manufacturing will require the CGL form Horse farms – other than specialty insurance companies – may be ineligible Other business pursuits may require underwriting approval Vacant or unoccupied farms are ineligible 18

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Farm Liability Coverage Form Review

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insuring Agreement Right and duty to defend an “insured” To pay sums for which the insured is legally liable Bodily injury / Property damage Must occur during the policy period 20

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insuring Agreement The insuring agreement provides coverage in a very broad manner, only referring to legal obligation to pay damages for “bodily injury” and “property damage” The insuring agreement does not refer to farming

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insuring Agreement The policy does exclude business pursuits  The exclusion does not apply to farming or custom farming

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Business Pursuits Exclusion This insurance does not apply to: i. Business Pursuits "Bodily injury" or "property damage" arising out of or in connection with a "business" engaged in by an "insured". This exclusion applies but is not limited to an act or omission, regardless of its nature or circumstance, involving a service or duty rendered, promised, owed, or implied to be provided because of the nature of the "business".

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Business Definition 3. "Business" means a trade, profession, occupation, enterprise or activity, other than "farming" or "custom farming", which is engaged in for the purpose of monetary or other compensation.

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Farming Definition 7. "Farming" means the operation of an agricultural or aquacultural enterprise, and includes the operation of roadside stands, on your farm premises, maintained solely for the sale of farm products produced principally by you. Unless specifically indicated in the Declarations, "farming" does not include: a. Retail activity other than that described above; or b.Mechanized processing operations.

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Farming Operations / Business Operations Policy specifically excludes loss arising out of other “business” operations Agritourism – increasing exposures Farm liability policy is designed to cover farming operations 26

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Policy Definitions 27

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Who Is An Insured Combines commercial entity coverage with personal lines coverage Partnership, LLC, Corporation Executive officers, members, managers, employees Spouse, children 28

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Motor Vehicles Mobile equipment (covered)Motorized vehicles (excluded)Trailer (excluded) Vehicles (including mobile equipment) subject to financial responsibility laws Farm vehicles are excepted under most state laws 29

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Exclusions

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Exclusions Includes common commercial liability exclusions AND common personal liability exclusions Specific exclusions for farm exposures 31

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Exclusions Expected or intended injury/damage Pollution Release or discharge from aircraft Aircraft, motor vehicle, motorized bicycle 32

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Exclusions Use of livestock Business pursuits Custom farming Employer’s liability 33

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Medical Payments On premises coverage Employee injury – limited exclusion 34

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Endorsements 35

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Custom Farming Provides coverage when the insured is performing custom farming for others, as long as this operation is performed under the supervision of the other property owner This does not include a neighborly exchange of services  This is not excluded in the original Farm Liability policy 36

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! ATV This endorsement provides coverage for an owned or non-owned ATV  Liability  Medical Payments Note that no Uninsured/Underinsured Motorists coverage applies and this needs to be disclosed to the insured and signed off 37

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Farm Employers Liability and Medical Payments This endorsement provides employer’s liability and medical payments coverage to employees in a state where workers’ compensation coverage is not required 38

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Amendatory Endorsement Adds coverage for BI / PD arising out of a fire to burn off crop stubble Provides a sub-limit for injury to animals or damage to other farmer’s crops arising out of use of ground-spray of chemicals 39

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Crop Dusting Operations Liability Provides a $25,000 sub-limit for injury or damage to others arising out of crop dusting activities 40

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Limited Pollution Liability This endorsement provides limited pollution coverage  Arising out of underground storage tanks  Arising out of waste management  Clean up of the environment due to negligent act of the insured 41

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Summary The combination of commercial and business risk requires this special and unique policy Care must be taken when discussing optional coverages  Put them in writing  If rejected, get the client’s signature and date 42

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! 43 Upcoming CE Classes FREE Community Class 10/10Directors & Officers Liability 10/18Homeowners 9/20 Landscapers 10/17 Moving & Storage Join the Community TODAY at:

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Polling Ahead 44 Your insured raises zinfandel grapes which she then harvests and hauls to a local winery. The winery then takes the grapes and processes them into wine. Your insured, the vineyard owner, should have a CGL policy in place due to the fact that her product (the grapes) are being processed into another type of product (wine).

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Polling Ahead 45 Your insured raises zinfandel grapes which she then harvests and hauls to a local winery. The winery then takes the grapes and processes them into wine. Your insured, the vineyard owner, should have a CGL policy in place due to the fact that her product (the grapes) are being processed into another type of product (wine).

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Polling Ahead 46 Your farm customer, Farmer John, takes his ATV off premises during hunting season. This is automatically covered under the FL due to the fact that it is not licensed for road use and is not required to be in his state.

Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Insurance Community Center A Center For Learning, A Community For Sharing Find us on LinkedIn & Facebook! Polling Ahead 47 Your insured’s FL provides for BI and/or PD arising out of the “insured’s” performance of, or failure to perform, “custom farming” operations as long as the receipts from those operations do not exceed: