X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

Designed to Meet the Special Needs of Farmers

Summary: ISO developed the farm umbrella liability policy (FB 00 01 04 16) to provide higher limits and broader coverage for farmers whose basic liability coverage is provided by the farm liability coverage form (FL 00 20 04 16). Subject to a self-insured retention, the FB 00 01 provides excess liability coverage for losses that exceed the underlying limits for: bodily injury and property damage (Coverage H); and personal injury and advertising injury (Coverage I). The farm umbrella liability policy provides: (1) higher limits of insurance over primary underlying coverage; (2) broader coverage than is generally available under primary underlying coverage; and (3) a drop-down feature when underlying coverage is exhausted.

This article offers a review and an analysis of the current ISO farm umbrella liability policy with its insuring agreement, exclusions, conditions, and definitions.

Topics covered:

Coverage H – bodily injury and property damage liability, insuring agreement

Coverage H – bodily injury and property damage liability, exclusions

Coverage I – personal and advertising injury liability, insuring agreement

Coverage I – personal and advertising injury liability, exclusions

Coverages H and I, supplementary payments

Coverage extension – coverages H and I

Section II – limits of insurance

Section III – conditions, loss conditions

Additional conditions

Section IV – definitions

Coverage H – Bodily Injury and Property Damage Liability, Insuring Agreement

Various provisions in this Policy restrict coverage. Read the entire Policy carefully to determine rights, duties and what is and is not covered.

Throughout this Policy the words “you” and “your” refer to the Named Insured shown in the Declarations, and any other person or organization qualifying as a Named Insured under this Policy. The words “we”, “us” and “our” refer to the Company providing this insurance.

Other words and phrases that appear in quotation marks have special meaning. Refer to Section IV – Definitions.

1.     Insuring Agreement

a.     We will pay on behalf of the “insured” the “ultimate net loss” in excess of the “retained limit” because of “bodily injury” or “property damage” to which this insurance applies. We will have the right and duty to defend the “insured” against any “suit” seeking damages because of “bodily injury” or “property damage” to which this insurance applies, when the “underlying insurance” does not provide coverage or the limits of “underlying insurance” have been exhausted.

     However, we will have no duty to defend the “insured” against any “suit” seeking damages for “bodily injury” or “property damage” to which this insurance does not apply. When we have no duty to defend, we will have the right to defend or to participate in the defense of the “insured” against any “suit” seeking damages to which this insurance may apply.

     We may, at our discretion, investigate any “occurrence” that may involve this insurance and settle any claim or “suit”, which we have the duty to defend, that may result.

     But:

(1)     The amount we will pay for the “ultimate net loss” is limited as described in Section II – Limits Of Insurance; and

(2)     Our right and duty to defend end when we have used up the applicable Limit of Insurance in the payment of judgments or settlements under Coverage H or I.

     No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under Supplementary Payments – Coverages H and I.

b. This insurance applies to “bodily injury” or “property damage” only if such “bodily injury” or “property damage” is subject to an applicable “retained limit” specified in the Schedule of Underlying Insurance in the Declarations. This “retained limit” can be either:

(1) The Each Occurrence limit of the “underlying insurance”; or

(2) Any other limit specified for a particular named exposure. If such limit exists for a particular exposure in a policy of “underlying insurance”, this insurance does not apply to the “bodily injury” or “property damage” arising out of that particular exposure unless that limit is also specified in the Schedule of Underlying Insurance in the Declarations.

c.     This insurance applies to “bodily injury” and “property damage” only if:

(1)     The “bodily injury” or “property damage” is caused by an “occurrence”; and

(2)     The “bodily injury” or “property damage” occurs during the policy period; and

(3) Prior to the policy period, no “insured” listed under Paragraph a. of Definition 14. “Insured” and no employee authorized by you to give or receive notice of an “occurrence” or claim, knew that the “bodily injury” or “property damage” had occurred, in whole or in part. If such a listed “insured” or authorized employee knew, prior to the policy period, that the “bodily injury” or “property damage” occurred, then any continuation, change, or resumption of such “bodily injury” or “property damage” during or after the policy period will be deemed to have been known prior to the policy period.

d. “Bodily injury” or “property damage” that occurs during the policy period and was not, prior to the policy period, known to have occurred by:

(1) Any “insured” listed under Paragraph a. of Definition 14. “Insured”; or

(2) Any employee authorized by you to give or receive notice of an “occurrence” or claim;

includes any continuation, change or resumption of that “bodily injury” or “property damage” after the end of the policy period.

e.”Bodily injury” or “property damage” will be deemed to have been known to have occurred at the earliest time when any “insured” listed under Paragraph a. of Definition 14. “Insured” or any employee authorized by you to give or receive notice of an “occurrence” or claim:

(1)Reports all, or any part, of the “bodily injury” or “property damage” to us or any other insurer;

(2)Receives a written or verbal demand or claim for damages because of the “bodily injury” or “property damage”; or

(3)Becomes aware by any other means that “bodily injury” or “property damage” has occurred or has begun to occur.

f.   Damages because of “bodily injury” include damages claimed by any person or organization for care, loss of services or death resulting at any time from the “bodily injury”.

Analysis

This premium content is locked for
Insurance Coverage Law Center subscribers only.

Start a free trial to enjoy unlimited access to the single source of objective legal analysis, practical insights, and news for the insurance industry.

  • Access the most current expert analysis and daily developments across jurisdictions
  • Solve complex research issues with expert tools and intelligence
  • Tap into insurance coverage expert guidance

Already have an account?
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected].

FC&S Editors

 

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.