AAIS AGRICULTURAL OUTPUT PROGRAM OVERVIEW

(February 2019)

INTRODUCTION

The American Association of Insurance Services (AAIS) Agricultural Output Program is similar to the AAIS Commercial Output Program. However, it is designed to respond to agribusiness operations’ unique characteristics and coverage requirements. The specific coverage part and each endorsement used are uniquely designed for agribusiness operations.

AG 0100–Agribusiness Property and Income Coverage Part is the Agricultural Output Program’s primary coverage form. It covers buildings, buildings under construction, computers, mobile equipment, personal property, specifically scheduled property, and stock. It also covers earnings and extra expense. It has nine additional coverages, nine coverage extensions, and 19 supplemental coverages. It also offers four income extensions, two income additional coverages, and five income supplemental coverages. AG 0100 also contains the conditions, definitions, and other elements that make it a complete coverage form.

ELIGIBILITY

This Program’s eligibility requirements are both quite specific and quite broad.

DECLARATIONS

The AAIS Agricultural Output Program does not have a specific declarations. AAIS provides two suggested or advisory declarations. Each is extensive and complicated because of the number of coverages provided and the flexibility to assign limits. Each insurance company usually designs and develops its own declarations.

Related Article: AAIS Agribusiness Declarations

POLICY CONSTRUCTION

The AAIS Agribusiness Property and Income Coverage Part can be issued as a separate monoline policy or as part of a package policy. These forms are mandatory in either case:

Agribusiness Common Policy Declarations

Related Article: AAIS Agribusiness Declarations

Agribusiness Property Coverage Declarations

AG 0100–Agribusiness Property and Income Coverage Part

CL 100–Common Policy Conditions

Mandatory state endorsements based on individual state exceptions

AVAILABLE ENDORSEMENTS

The AAIS Agribusiness Property and Income Coverage Part provides extremely broad and comprehensive coverage. As a result, it has only a limited number of endorsements available to use with it.

UNDERWRITING

Underwriting the Agribusiness Property and Income Coverage Part requires a combination of skills. Commercial underwriting skills are needed for manufacturing, processing, and retail operations. Farm underwriting skills are needed for farm-related operations and exposures.

RATING

Rating the Agribusiness Property and Income Coverage Part is similar to rating the Commercial Output Policy. This depends heavily on the underwriter’s knowledge and skill and a thorough and properly completed application.