AAIS AGRICULTURAL OUTPUT PROGRAM ELIGIBILITY

(February 2019)

ELIGIBLE RISKS

The American Association of Insurance Services (AAIS) Agricultural Output Program eligibility requirements are both quite specific and quite broad. The coverage is intended for risks that perform any of the following agricultural operations:

• Purchase, sell, store, or process agricultural products
• Manufacture goods that incorporate agricultural products
• Sell goods or services to agricultural or agribusiness customers
• Produce farm commodities used in manufacturing or processing

INELIGIBLE RISKS

The eligibility requirements are relatively broad and open-ended. However, not every insurance company adopts the AAIS criteria. Each company has its own eligibility criteria and standards. Some standards address minimum premiums, property values, and excluded operations.

The AAIS Agricultural Output Program is not available for a business that is not directly related to agricultural operations or processing. The insurance company must review and approve any exceptions.

USING THE CORRECT COVERAGE FORM

The coverage form selected must match the risk! A farm coverage form may be more appropriate because it covers both personal and commercial exposures. The AAIS Commercial Output Program may be more appropriate if the named insured’s agribusiness operation is not its main operation or business.