OVERVIEW OF THE ISO FARM PROGRAM COVERAGE FORMS

(April 2020)

INTRODUCTION

Farms and ranches are different from most commercial operations because the owner both conducts his business and lives with his entire family on the same premises. A farm or ranch has a combination of commercial and personal exposures that must be managed. It is possible to use commercial lines policies to meet the business needs and personal lines policies to meet the personal needs, but this approach includes the danger of coverage gaps and overlaps. The best approach may be to find an option that satisfies all potential coverage needs in a single, flexible policy.

The Insurance Services Office (ISO) Farm Program uses a cafeteria approach for its insurance offerings. Some risks choose to have only Farm Property and Farm Inland Marine Forms to address the property coverages but use the Commercial General Liability Forms for the liability coverage exposures. They may choose to use the Farm Umbrella or a Commercial Umbrella with a Farm Endorsement. A Homeowners policy may be used on the dwelling, but Farm forms used on everything else.

ELIGIBILITY

Insureds with an insurable interest in a farm or ranch are eligible for coverage. However, there are limitations to what can be combined in a single policy.

The following sections explain how the basic policies are arranged.

COMPARISONS

The Farm Program was updated in 04 16. A comparison of the current edition with the prior editions is helpful, especially when significant changes in coverage occur.

COVERAGE FORMS

A number of forms are needed to build a farm policy. These policies may be combined into a single Farm Combination policy. When that occurs, only one IL 00 17 needs to be attached, but all other applicable forms listed below must be attached. A common policy declarations and a single policy cover or jacket form are typically attached in this situation.

Policy Make-Up

The Farm Property Policy consists of the following forms:

· IL 00 17–Common Policy Conditions contain the conditions common to all Commercial Lines of insurance. This form is a mandatory part of all monoline or multi-line simplified policies.

· Farm Property Declarations

· FP 00 90 –Farm Property – Other Farm Provisions Form – Additional Coverages, Conditions, Definitions

· FP 10 60–Causes of Loss Form - This form describes the causes of loss or perils insured against and the coverage exclusions that apply.

Related Article: FP 10 60–Causes of Loss Form Analysis

· Farm Property Coverage forms (one or more)

FP 00 12–Farm Dwellings, Appurtenant Structures and Household Personal Property Coverage Form

FP 00 13–Farm Personal Property Coverage Form

FP 00 14–Barns, Outbuildings and Other Farm Structures Coverage Form

· Policy Cover or Jacket is a form individually designed by individual companies. It usually includes a table of contents or index, which is a requirement in some states.

The Farm Inland Marine Policy consists of the following forms:

· IL 00 17–Common Policy Conditions Form contains the conditions common to all Commercial Lines of insurance. This form is a mandatory part of all monoline or multi-line simplified policies.

· Farm Inland Marine Declarations

· Farm Inland Marine Coverage Forms (one or both)

FP 00 30–Mobile Agricultural Machinery and Equipment Coverage Form

FP 00 40–Livestock Coverage Form

Related Article: FP 00 40–ISO Livestock Coverage Form

· Policy Cover or Jacket is a form individually designed by individual companies. It usually includes a table of contents or index, which is a requirement in some states.

The Farm Liability Policy consists of the following forms:

· IL 00 17–Common Policy Conditions Form contains the conditions common to all Commercial Lines of insurance. This form is a mandatory part of all monoline or multi-line simplified policies.

· Farm Liability Declarations

· FL 00 20–Farm General Liability Coverage Form

· IL 00 21– Broad Form Nuclear Exclusion Endorsement Form

· FL 01 16–Exclusion–Migrant and Seasonal Agricultural Worker Protection Act Endorsement

· FL 01 63–Amendatory Endorsement

· Policy Cover or Jacket is a form individually designed by individual companies. It usually includes a table of contents or index, which is a requirement in some states.

The Farm Umbrella Policy consists of the following forms:

· IL 00 17–Common Policy Conditions Form contains the conditions common to all Commercial Lines of insurance. This form is a mandatory part of all monoline or multi-line simplified policies.

· Farm Umbrella Declarations

· FB 00 01–Farm Umbrella Coverage Form

· FB 10 01–Broad Form Nuclear Energy Exclusion Endorsement

· Policy Cover or Jacket is a form individually designed by individual companies. It usually includes a table of contents or index, which is a requirement in some states.

Note: If a farm operation chooses to use the Commercial General Liability form instead of the Farm Liability Policy, the Commercial Umbrella, with a farm endorsement attached, must be used instead of the Farm Umbrella Policy.

AVAILABLE ENDORSEMENTS

There are many endorsements available to tailor the ISO Commercial Farm Coverage Forms. Some are mandatory for all policies, while others are mandatory for specific classifications and types of business. Others are optional and permit a standard form to be customized to meet a specific risk's coverage needs. Endorsements broaden, restrict, delete, modify, or add coverage.