Agribusiness Commercial General Liability Coverage AgCGL

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Your Instructor Today

Casey Roberts, CIC, AFIS, ACSR

Principal, Laurus Insurance Consulting, LLC

Your CIG Representatives

Walter WootenAg Business Lines

Manager wwooten@ciginsurance.com

831 233 5057

Jeri SmithAg Underwriting

Specialist jsmith@ciginsurance.com

831 233 5056

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CIGU Insurance Education

Agribusiness Commercial General Liability Coverage

AAIS AgCGL

Course # 288538

Approved for 4 Continuing Education Credit Hours In California

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DisclaimerNot only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state.

This material is intended as a general guideline and does not apply to a specific situation.

 The forms used in this presentation are owned by AAIS and protected under their copyright. Use of the AAIS Material is limited to AAIS Participating Insurers and their Authorized Representatives. This presentation is prepared for CIG and includes specific CIG underwriting guidelines. The creator of this presentation is Insight Insurance Consulting and Insurance Community Center. Any organization for whom this seminar is conducted shall have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this book.

Insight Insurance Consulting: www.insightinsuranceconsulting.com

Insurance Community Center: www.insurancecommuntycenter.com

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About the CIGU Education

Capital Insurance Group has partnered with the Insurance Community Center to present classes that are part of CIGU.

CIGU's mission is to provide insurance education to aspiring agents and agency professionals seeking CE courses to maintain and update their Property & Casualty license status.

CIG Introduces Their New

AAIS Agribusiness Commercial General Liability Coverage

(AgCGL)

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Polling Question #1

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What This Course Will Cover

Background on AgCGLEligibilityReview of AgCGL Coverage FormReview of available endorsements

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Background on AAIS Agribusiness Commercial General Liability Coverage

AgCGL

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Industry Issues

Changing Nature of Agriculture Agritainment and agritourism Size and number Vertical integration

THE AAIS AGRICULTURAL GENERAL LIABILITY PROGRAM

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Changing Nature of Agriculture

Size and number Last 10 years

− Number of farms decreased by 4%

− Average size of farm increased from 436 to 449 acres

− Average per farm income grew by 60% 1997 to 2002

− Farms 1-1999 acres decreased in number

− Farms over 2000 acres increased by 5%

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Changing Nature of Agriculture

Vertical integration Efficiency Market power Grower to consumer Scientific advances

THE AAIS AGRICULTURAL GENERAL LIABILITY PROGRAM

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AgCGL Targets

The ag range of operations Traditional farming Personal liability for farm residents Custom/contract farming Contract feeding operations Farm management operations

−Annuals−Perennials

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AgCGL Targets

Agribusiness processing operationsAgribusiness warehousing or storage operationsVertically integrated operationsAgritainment/agritourism activitiesCombine personal, farm, and commercial on a

single policy Class combinations Limits do not stack

Polling Question #2

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Per CIG Underwriting Guidelines

Eligibility

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Eligibility (AAIS)

Risks involved in one or more of the following agricultural operations are eligible for the program Buying, selling, storage, or processing of

agricultural products Manufacturing goods from agricultural

products

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Eligibility (AAIS)

The sale of goods or services to agricultural or agribusiness customers; or

Farming operations that supply agricultural commodities for manufacturing or processing

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Review of the AgCGL Coverage Form

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AAIS / ISO Farm Liability Policy Structure

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Named Insured: John and Pipp Appleseed

Mailing Address: W 8800 County Highway 96 Policy Period: 06/01/2009 - 06/01/2010 Hortonville, WI 54944 12:01 am standard time at mailing address shown

Agent Name and Address: Dale Insurance P.O. Box 1 Dale, WI 54944

Business Description: Apple Farm The insured is:X Individual Partnership Joint Venture Limited Liability Company Trust Organization (Describe)

Limits of Liability:Each Occurrence Limit $ 1,000,000 Medical Payments Limit $ 5,000 any one person Fire Legal Liability Limit $ 50,000 each occurrence Short-term Rented Premises Limit $ 25,000 any one premisesPersonal and Advertising Injury Limit $ 1,000,000 any one person or organizationGeneral Aggregate Limit $ 2,000,000Products/Completed Work Hazard Aggregate Limit $ 2,000,000

Farm Chemicals Limited Liability Aggregate Limit $ 25,000Custom Farming Annual Receipts $ 5,000

Location of all premises owned, rented, occupied, or controlled by the insured:10 acres Sec 1, TWP X, RGE Y25 acres Sec 2, TWP X, RGE Y

Loss CostClassification Code No. Rating Basis Rating Base Prem/Ops All Other Total PremiumCrops - Consumption 82415 S 500,000Personal Liability 82801 FU 11-2 FamilyOwned ATV 82853 U 1U-Pick - No Off Ground 82241 S 10,000 Bakeries - 81802 S 25,000Including Baking On Premises

Other Premium $ To Equal Minimum $ Total Advance Premium $

Audit Period: Annually Semi-Annual Quarterly Monthly Deposit Premium $

FORMS AND ENDORSEMENTS:CL 0100, AL 0001, AL 0170, AL 0290, AL 8005

FARM COMMERCIAL LIABILITY COVERAGE AAIS DECLARATIONSAL 6501 09 08Page 1 of 1

Polling Question #3

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Common Policy Conditions CL 0100

AssignmentCancellationChange, Modification, or Waiver of PolicyInspection

Included because EB is a trigger

Examination of Books and Records

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Amendatory Endorsement (Ca.)

CL 0162 08 06 – Used in California

Deletes the “cancellation” language in the CL 0100 and adds California specific language regarding “Cancellation and Nonrenewal”

It is all about the trigger of coverage

• Most coverages are within the primary coverage form

• Triggered by the Declarations page

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Construction

Two base forms Farm Commercial Liability Coverage Form Agribusiness Commercial General Liability

Coverage Form

Ag CGL Coverage Structure

Agreement Definitions Principal Liability Coverages Supplemental Payments What Must Be Done In Case Of Loss How Much We Pay Conditions Nuclear Energy Liability Exclusion

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Polling Question #4

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Definitions

Advertisement Auto Basic territory Controlled substances Coverage territory Covered contract Damages Declarations Designated insured Electronic media Employee

Executive officer Fungus or related perils Impaired property Indemnitee Insured Leased worker Limit Loading or unloading Mobile equipment Occurrence Personal and advertising injury

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Definitions

Pollutants Products Products/completed work hazard Property damage Short-term rented premises Silica Suit Temporary Worker Terms Volunteer Worker Your Work

34 Definitions in AllWords defined will be

in “quote marks”

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Principal Liability Coverages

Coverage L—Bodily Injury Liability and Property Damage Liability

Coverage M—Medical Payments

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Principal Liability Coverages

Coverage N—Farm Chemicals Limited Liability $25,000 Automatic or DEC

Coverage O---Fire Legal Liability $50,000 or DEC

Coverage P—Personal and Advertising Injury Liability

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Additional Coverages By End

Coverage T Aircraft Crop Dusting Bodily Injury and Physical

Injury to Property Aircraft Crop Dusting Physical Injury to Property Contingent Aircraft Crop Dusting Bodily Injury

and Physical Injury to Property Contingent Aircraft Crop Dusting Physical Injury

to Property

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Additional Coverages by End

Coverage Y Employee Benefits Liability Claims-Made

Basis Employee Benefits Liability Extended

Reporting Period

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Polling Question #5

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Additional Coverages by End

Coverage Z Employment Practices Liability—Claims-

Made Basis Employment Practices Liability Extended

Reporting Period

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43 Exclusions

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Endorsements

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Endorsements

See attached AAIS current endorsement list

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Thanks for Attending

CIG offers an agent’s discount for all Insurance Community classes. Check out the calendar at www.insurancecommunitycenter.com

OR join the University and attend all the classes you want and use the universities products.

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MORE Questions or Assistance?

Casey Roberts

(707) 477-0913

casey@laurusinsuranceconsulting.com