Compare: CG 00 01-Commercial General Liability Coverage Form: 04 13 Edition To The 12 07 Edition

COMPARE: ISO FARM PROGRAM 04 16 EDITION TO PRIOR EDITIONS

(April 2020)

INTRODUCTION

The Insurance Services Office (ISO) has introduced the 04 16 general revision to the Farm Program. All of the Farm Coverage Forms were updated along with many of the endorsements. This edition date change impacted every coverage form so that all now carry the same 04 16 edition date.

Form Number	Coverage Form Name	Prior Edition Date
FP 00 90	Farm Property - Other Farm Provisions Form - Additional Coverages, Conditions, Definitions	09 03
FP 10 60	Covered Causes of Loss – Farm Property	02 09
FP 00 12	Farm Property - Farm Dwellings, Appurtenant Structures And Household Personal Property Coverage Form	09 03
FP 00 13	Farm Property - Farm Personal Property Coverage Form	09 03
FP 00 14	Farm Property - Barns, Outbuildings and Other Farm Structures Coverage Form	09 03
FL 00 20	Farm Liability Coverage Form	10 06
FB 00 01	Farm Umbrella Liability	10 06
FP 00 30	Mobile Agricultural Machinery and Equipment Coverage Form	02 09
FP 00 40	Livestock Coverage Form	02 09

CHANGE THAT APPLIES TO ALL COVERAGE FORMS

Editorial

Most of the changes in all of the forms are editorial in nature. Many of the editorial changes are to bring these forms into consistency with wording usage throughout ISO coverage forms. There are outlining changes, capitalization and titling changes which should not impact coverage but hopefully make reading the form easier. Many editorial changes took place in the endorsements because minor changes, such as outlining, in the coverage forms resulted in needed identification changes in the endorsements.

CHANGE THAT APPLIES TO ALL FARM PROPERTY, FARM LIABILITY AND UMBRELLA LIABILITY COVERAGE FORMS

Agritainment

One significant change that impacts all coverage forms is agritainment. The same definition of the term agritainment has been added to all coverage forms. It is any type of tourism or entertainment that takes place on the insured location. It must be an activity that is related to either agriculture or aquaculture. There must be monetary or compensation aspects to the activity for it to be agritainment, but the definition does not state who must obtain the benefit or what the compensation could be. Also, while the activity must primarily take place on an insured location, it could take place off-site too.

The reason the definition is added is so that agritainment exposures can be excluded from almost all coverage. The good news is that two new endorsements are available to cover the exposure. FP 05 05–Agritainment – Property and FL 05 01–Agritainment – Liability are available. This method allows for evaluation of the exposure and the calculation of a charge when coverage is needed. Unfortunately, there is no agritainment endorsement for the umbrella.

CHANGES THAT APPLY TO ALL FARM PROPERTY FORMS

Ordinance or Law

Throughout the property forms, reference is made to the enforcement of ordinances or laws. In keeping with all other commercial property forms, the addition of “compliance” with such laws is added. Because this is an additional restriction, it is a reduction of coverage.

Electronic Equipment

The phrase “any device or instrument for transmitting, recording, receiving or reproduction of sound or pictures” is changed to “electronic equipment that reproduces, receives or transmits audio, visual or data signals.” This could be considered a reduction in coverage because of the reference to data signals, but it is actually just keeping up with changing technology.

FP 00 90–FARM PROPERTY–OTHER FARM PROVISIONS FORM–ADDITIONAL COVERAGE, CONDITIONS, DEFINITIONS

Additional Coverage for Glass or Safety Glazing Material is added. This is less a new coverage and more of a moving together of all glass-related coverage to one area.
Unoccupancy and Vacancy change could be a significant benefit or reduction of coverage depending on the cause of loss. In the prior edition, the limit of insurance available to pay for a loss to a vacant or unoccupied building was reduced by 50%. This edition changes the penalty to reduce any payment due by 15%. This means that for large losses, the insured would sustain only a 15% payment penalty while under the prior edition, 50% of the loss could be denied. However, smaller losses that were less than 50% of the limit of insurance would have sustained no penalty, while under this version, the smaller losses are also subject to the 15% penalty.
Definition of Insured is expanded to include non-relative students who are living off premises in order to attend school. Under the prior edition, the non-relative coverage stopped at 21 years of age while the relative continued to have coverage until the age of 24. Now any student is covered up to 24 years of age if they meet the rest of the definition requirement.
Water damage in the definition of specified causes of loss is modified but only for Special Cause of Loss. The revised definition includes such damage when a water or sewer pipe that is part of a municipal system is off premises and breaks due to wear and tear.

FP 10 60–COVERED CAUSES OF LOSS – FARM PROPERTY

Vandalism cause of loss was not available if a building or structure had been vacant for more than 30 days. The 30 days has been increased to 60 days.
Under Basic Cause of Loss, the Theft cause of loss is reorganized, and the wording is more in keeping with other commercial forms added. The conversion, embezzlement and disappearance wording is eliminated to be replaced by the following additional exclusions:

· Dishonest acts by any insured, partner, employee, etc.

· Unauthorized instructions

· Voluntary parting

· Disappearance of portable structures without evidence of theft

· Shortage disclosed in inventory

The end result may be the same, but the wording makes the intent of the exclusion more apparent.

Breakage of Glass or Safety Glazing is eliminated because it is moved to FP 00 90, as explained above.
Special cause of loss is changed to direct physical loss instead of risks of direct physical loss and, instead of referring specifically to just the exclusions in the following paragraphs, it states that limitations and exclusions could be anywhere in the policy.
The following exclusion changes are made:

· Inventory shortage and disappearance exclusions are eliminated

· Dishonest acts of insured, partner, employees, etc., is rewritten to add clarity and also to explain it applies at any time.

· Disappearance of portable structures without evidence of theft

· Shortage disclosed in inventory

· Tremors and aftershocks are added to the list of events that the term earthquake includes. An explanatory note is added. It states that earth movement is excluded, regardless of how it is caused. It may be from a natural cause or by any other force.

· The utility services exclusion adds communication and water. Instead of just applying when off premises failure occurs, it now applies when equipment at the insured’s location fails if that equipment is the property of the utility. Loss caused by utility surges is also excluded.

FP 00 12–FARM PROPERTY–FARM DWELLINGS, APPURTENANT STRUCTURES AND HOUSEHOLD PERSONAL PROPERTY COVERAGE FORM

The Special Limit of insurance that limits coverage for outdoor radio and TV antennas to $1,000 is eliminated for both Coverages A and B. This means that the antenna is included in the regular limit of insurance.
Raises the threshold of paying replacement cost claims prior to completion from $2,500 to $5,000.
Agritainment property and contraband or items in the course of illegal trade are not covered property
Special limits are changed:

· Watercraft special limit is increased to $2,500

· Business Property special limit is increased to $1,500

· Antennas, tapes, etc., used with electronic equipment is added for $250

Refrigerated Products is increased from $500 to $1,000

FP 00 13–FARM PROPERTY–FARM PERSONAL PROPERTY COVERAGE FORM

Agritainment property and contraband or items in the course of illegal trade are not covered property
Borrowed or Rented Farm Machinery, Vehicles, Equipment – Thirty-day limit is added for a limit of $10,000.

FP 00 14–FARM PROPERTY–BARNS, OUTBUILDINGS AND OTHER FARM STRUCTURES COVERAGE FORM

Private light poles are considered not covered property but then are added for $1,000 coverage under Private Power and Light Polices Coverage Extension.

FL 00 20–ISO FARM PROGRAM LIABILITY COVERAGE FORM

Bodily Injury and Property Damage Exclusions:

· Pollution adds exceptions for off premises exclusion resulting from leaks from mobile equipment or from release of vapors from material brought onto premises by the named insured

· Damage to Property does not apply to property loaned to the named insured or personal property in the care, custody, or control of the insured if such liability was assumed in a sidetrack agreement.

· Distribution of Material in Violation of Statues is changed to Recording and Distribution of Material or Information in Violation of Law and FCRA and similar laws are added to the exclusion.

· Agritainment related injuries and property damage are excluded.

Personal and Advertising Injury Exclusions:

· Distribution of Material in Violation of Statues is changed to Recording and Distribution of Material or Information in Violation of Law and FCRA and similar laws are added to the exclusion.

· The following exclusions are added:

Infringement of copyright, patents, trademark or trade secret
Electronic chatrooms or bulletin boards
Unauthorized use of another’s name or product
Agritainment related injuries are excluded.
Advertising injury due to Insureds in media or internet type of businesses

Medical Payments Exclusions:

· Professional service exclusion is also changed not to cover allegations of lack of supervision, etc.

· Agritainment

Definitions

· Advertisement changed because of the internet

· Business excludes agritainment

· Farm employee does not include an employee of agritainment

· Farming does not include anything related to agritainment

· Insured is expanded to include non-relative students who are living off premises in order to attend school. Under the prior edition, the non-relative coverage stopped at the age of 21, while the relative continued to have coverage until 24 years of age. Now any student is covered up to 24 years of age if they meet the rest of the definition requirement.

· Property damage is changed to state that electronic data is not tangible property, which means that electronic data is not covered for property damage.

· Residence employees and residence premises do not include any involvement with agritainment.

FB 00 01–ISO FARM PROGRAM UMBRELLA LIABILITY POLICY FORM

Bodily Injury and Property Damage

· Paragraph b. is added under the insuring agreement to explain that if an exposure sublimit applies in an underlying coverage, that the umbrella does not drop down to that limit unless that exposure and limit is shown on the declarations.

· Exclusion changes:

o Wording is changed in many exclusions to clarify that when follow form type coverage applies, any coverage provided in the umbrella follows the term in that underlying policy unless another direction is provided within the umbrella coverage form

o Pollution adds exceptions for off premises exclusions resulting from leaks from mobile equipment or from release of vapors from material brought onto premises by the named insured

o Professional is modified to also exclude any allegations of negligence, lack of supervision, etc.

o Distribution of Material in Violation of Statues is changed to Recording and Distribution of Material or Information in Violation of Law and FCRA and similar laws are added to the exclusion.

o Agritainment related injuries and property damage are excluded unless coverage is provided in the underlying.

Personal and Advertising Injury

· Paragraph b. is added under the insuring agreement to explain that if an exposure sublimit applies in an underlying coverage, the umbrella does not drop down to that limit unless that exposure and limit is shown on the declarations.

· Exclusion changes:

Wording is changed in many exclusions to clarify that when follow form type coverage applies, any coverage provided in the umbrella follows the term in that underlying policy unless another direction is provided within the umbrella coverage form
Employment-related exclusion applies before, during, and after employment and for malicious prosecution
Professional is modified to also exclude any allegations of negligence, lack of supervision, etc.
Distribution of Material in Violation of Statues is changed to Recording and Distribution of Material or Information in Violation of Law and FCRA and similar laws are added to the exclusion.

· New exclusions:

Infringement of copyright, patent, trademark or trade secret
Electronic chatrooms or bulletin boards
Unauthorized use of another name or product
Personal injury due to agritainment
Advertising injury due to Insureds in media or internet type of businesses

Definitions

· Advertisement changed because of the internet

· Business excludes agritainment

· Farm employee does not include an employee of agritainment

· Farming does not include anything related to agritainment

· Insured is expanded to include non-relative students who are living off premises in order to attend school. Under the prior edition, the non-relative’s coverage stopped at the age of 21 while the relative continued to have coverage until 24 years of age. Now any student is covered up to 24 years of age if they meet the rest of the definition requirement.

Additional insureds coverage is limited to that stated in the contract of the limit on the policy, whichever is less but no broader than the underlying.

· Property damage is changed to state that electronic data is not tangible property, which means that electronic data is not covered for property damage.

· Residence employees and residence premises do not include any involvement with agritainment.

FARM INLAND MARINE FORMS

FP 00 30–ISO Farm Program Mobile Agricultural Machinery And Equipment Coverage Form

Water damage in the definition of specified causes of loss is modified but only for Special Cause of Loss. The revised definition includes such damage when a water or sewer pipe that is part of a municipal system is off premises and breaks due to wear and tear.
The following exclusion changes are made:

· Inventory shortage and disappearance exclusions are eliminated

· Dishonest acts of insured, partner, employees, etc., is rewritten to add clarity and also to explain it applies at any time.

· Disappearance of portable structures without evidence of theft

· Shortage disclosed in inventory

FP 00 40–ISO Farm Program Livestock Coverage Form

This form is revised to have two types of covered causes of loss. One is a list of named causes of loss that are not theft, and the other is theft. This results in a total rewriting of the theft cause of loss. One reason for this change is that loss, as defined under this form, means the death of the animal. When a theft occurs, there is no knowledge as to whether or not death occurred. By splitting the causes of loss, the term loss refers only to loss that is not theft. The cause of loss theft uses only the term theft, so death is therefore not a requirement.

Throughout this coverage form, the term ”loss” or theft” is used in place of just “loss.”