What Are Farm And Ranch
Insurance Endorsements?

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What Are Farm And Ranch Insurance Endorsements?

What Are Farm And Ranch Insurance Endorsements?

What Are Farm And Ranch Insurance Endorsements?. A farm and ranch insurance endorsement can either add, remove or exclude certain farm property or liability coverages. It's a form that becomes part of your insurance policy, altering your policy coverage.

For example, any changes made to the basic policy the insurance carrier files with the state regulators is done by using endorsements. Common changes might include: Adding more coverage or excluding coverage for specific exposures. Farm And Ranch Endorsements allow you to make these changes - without having to buy another policy or take the chance of having risks go uninsured.

So what are farm and ranch insurance endorsements? Read on to discover the many types of endorsements available for farm and ranch insurance policies.

What are farm and ranch insurance endorsements? Endorsements modify the basic Farm Policy to either add, delete, or exclude certain types of coverage.

FARM POLICY ENDORSEMENT TYPES


So what are farm and ranch insurance endorsements?. This listing identifies the forms and endorsements available to modify ISO's Farm Policies. The listing is by form number and title. A brief description accompanies each form.

Note: This section does not include state-specific endorsements, changes or amendments, nor are the coverage forms themselves (FB 00, FL 00 AND FP 00) included in this listing.

Farm policy endorsements are grouped into three categories, Farm Property, Farm Liability, and Farm Umbrella, as follows:


What Are Farm Property Endorsements?

The Farm Property Endorsements are as follows:

FP 01 60-Exclusion of Loss Due to Virus or Bacteria

This mandatory form must be attached to any policy containing FP 10 60-Causes of Loss Form - Farm Property, FP 00 30-Mobile Agricultural Machinery and Equipment Coverage Form or FP 00 40-Livestock Coverage Form. The only exception is when FP 05 30 or FP 05 31 is attached instead. Essentially this form is an absolute exclusion.

FP 03 04-Single Farm Property Per Occurrence Deductible

This endorsement amends the deductible section in FP 00 30, FP 00 40 or FP 00 90. It states that if damage occurs involving two or more coverage parts, only the highest deductible for any coverage part applies to the occurrence. This prevents application of multiple deductibles for a single occurrence.

FP 03 05-Windstorm or Hail Percentage Deductible (04 16 changes - mainly editorial)

This endorsement provides a percentage deductible that applies only to wind and hail losses. It is important to note that the deductible is a percentage of the applicable coverage limit, not of the amount of the loss. For example, if the insurance limit is $500,000, and the deductible is 5%, the deductible amount paid by the insured is $25,000. This endorsement is used mainly in areas subject to high wind and hail conditions and significant wind and hail losses.

FP 04 02-Sump Overflow and Water Backup from Sewers or Drains (Coverages A, B, C and D only)

This endorsement provides coverage for losses due to water backup from sewers or drains and overflows from sump pump systems. The limit is $5,000. This form expands coverage for only the personal side of the farm since it is only available for use with FP 00 12-Farm Property-Farm Dwelling, Appurtenant Structures And Household Personal Property Coverage Form.

FP 04 04-Dwelling and Farm Building Replacement Cost Protection (Including Ordinance or Law Coverage)

This endorsement accomplishes several objectives. It eliminates the 80% insurance to value requirement, provides three methods to handle loss cost increases due to application of ordinance or laws, and adds coverage for construction cost increases not related to ordinances or laws. This form is only available for buildings covered under the following:

  • FP 00 12-Farm Property-Farm Dwellings, Appurtenant Structures and Household Personal Property Coverage Form
  • FP 00 14-Farm Property-Barns, Outbuildings and Other Farm Structures Coverage Form.
  • FP 05 26 cannot be attached when this endorsement is attached.

FP 04 07-Increased Special Limits of Specified Household Personal Property

FP 00 12- Farm Property-Farm Dwelling, Appurtenant Structures and Household Personal Property Coverage Form imposes maximum limits on many types of personal property. This endorsement provides a means to increase those sub-limits. However, the total limit of insurance remains unchanged.

FP 04 08-Farm Computer Coverage

This is the electronic data processing coverage part for the Farm policy.

FP 04 09-Increased Special Limits on Business Property

FP 00 12, Farm Property-Farm Dwelling, Appurtenant Structures And Household Personal Property Coverage Form limits coverage for business property to limits of $2,500 on premises and $1,500 off premises. This endorsement allows the insured to choose any limit for the business property on premises exposure. When that limit is selected, 60% of it is available to apply to business property off premises. This limit is not an additional amount of insurance but is a limitation on business property. If additional limits are desired, refer to FP 04 61-Scheduled Personal Property.

FP 04 16-Contributing Insurance

This endorsement permits two or more insurance companies to provide property coverage for the same farm. The total amount of insurance is listed on the declarations. Each participating company is responsible for paying its proportional share of any covered loss.

FP 04 20-Foreign Objects in Machinery

FP 10 60-Causes of Loss - Farm Property excludes any loss or damage caused by foreign objects being scraped or sucked into an item of machinery or equipment. FP 00 30-Mobile Agricultural Machinery and Equipment Coverage Form excludes the same loss or damage. This endorsement can be used to remove the exclusion in both forms.

FP 04 21-Debris Removal Increased Limit of Insurance

Debris removal coverage is limited to 25% of the amount of a covered loss plus an additional 5% of the amount of loss under certain circumstances. The 5% figure can be an amount in excess of the insurance limit. This endorsement provides a means for the insured to increase the 5% figure to a specific dollar amount at each location. This is important for insureds with significant potential debris removal costs.

FP 04 22-Pollutant Clean Up and Removal Additional Aggregate Limit of Insurance

Pollutant Clean Up and Removal Coverage has a $10,000 limit in the policy. This endorsement provides a means for the insured to increase the limit for each location to a specific dollar amount. This endorsement also has a space to enter a deductible amount. A deductible may be a requirement of any company willing to write higher limits for this coverage.

FP 04 24-Spoilage Coverage-Perishable Farm Personal Property

This endorsement applies only to FP 00 13-Farm Property -Farm Personal Property Coverage Form and covers spoilage that occurs due to breakdown, utility failure, or contamination. This is a separate coverage part with its own schedule, extensions of coverage, conditions, exclusions, and definitions.

FP 04 27-Grain Under Government Loan

Grain pledged as collateral for a loan from the Commodity Credit Corporation of the United States Department of Agriculture (USDA) creates unique requirements and agreements. This endorsement is designed to satisfy those requirements and agreements.

FP 04 28-Coverage G-Barns, Outbuildings and Other Farm Structures-Blanket Insurance

This endorsement provides the option and means to cover all barns, outbuildings and other farm structures on a blanket basis with a single amount of insurance. It amends the coinsurance and valuation clauses to accommodate and reflect the changes. FP 16 01-Coverage G-Barns, Outbuildings and Other Farm Structures Statement of Values can be used for the statement of values. This option applies only to FP 00 14-Farm Property-Barns, Outbuildings and Other Farm Structures Coverage Form.

FP 04 31-Inflation Guard

This endorsement increases the limits for ALL buildings on the policy annually but prorated at the time of loss. The amount or percentage increase must be selected and entered on the schedule.

Warning: This form contains a schedule to exclude buildings. The percentage increase does not apply to any structure listed and described in the schedule area of the form.

FP 04 35-Special Loss Settlement on Dwellings

This endorsement permits a different percentage than the 80% figure specified in the coverage form as the qualifying amount for replacement cost coverage and loss settlement.

FP 04 36-Replacement Cost - Household Personal Property

FP 00 12-Farm Property-Farm Dwellings, Appurtenant Structures and Household Personal Property Coverage specifies that loss or damage to household property is paid on an actual cash value basis. This endorsement deletes valuation based on actual cash value and substitutes replacement cost valuation. Payment is based on the cost to either repair or replace, 400% of the actual cash value of the item or the limit of insurance, whichever is least costly to the insurance company.

FP 04 50-Additional Insured-Farm Property

Individuals or organizations that have a financial interest in any farm property, other than mortgagees, should be listed on this endorsement. The property in which they have a financial interest should also be listed. All loss payments are made out to both the named insured and the applicable financial interest for each described property, if any.

FP 04 56-Collision Resulting in Death of Livestock

This endorsement eliminates all causes of loss for livestock covered by FP 00 13-Farm Property-Farm Personal Property Coverage Form except for collision. The word COLLISION must be entered on FP DS 11-Advisory Declarations Page B - Scheduled of Farm Personal Property - Coverage E. A limit for the livestock can be entered on either this endorsement or the declarations. This is a very restrictive endorsement and should be used with extreme caution.

FP 04 61-Scheduled Personal Property

This endorsement provides a means to change the sublimits of insurance that apply in the basic policy and to customize coverage for insureds with higher values for certain classes of property.

FP 04 75-Unoccupancy and Vacancy Permit

Policy coverage forms contain limitations and restrictions that apply to buildings not occupied or vacant. This endorsement removes the time provisions and restrictions specified in the applicable coverage form with respect to unoccupancy and vacancy but only for the length of the permit period.

FP 04 78-Functional Building Valuation

Older buildings that are being underutilized will probably be replaced with a very different type of building if significantly damaged. This endorsement allows the insured to select a lower limit of insurance for such a building. An interesting aspect of this endorsement is that the least of the limit, the cost to repair with cheaper materials or the market value of the building is paid.

FP 04 79-Functional Farm Personal Property, Machinery and Equipment Valuation

Older equipment that is being underutilized will probably be replaced with a very different type of item if significantly damaged. This endorsement allows the insured to select a lower limit of insurance for such equipment. An interesting aspect of this endorsement is that the least of the limit, the cost to repair with cheaper materials or the market value of the equipment, is paid.

FP 04 80-Rental To Others-Theft Coverage

FP 10 60-Causes of Loss Form - Farm Property excludes coverage for theft from the part of the principal residence rented out or leased to others. This endorsement deletes the exclusion and therefore provides theft coverage for those parts of the dwelling rented to others. There are significant restrictions to this coverage though.

FP 05 03-Debris Removal Expense

This endorsement reduces coverage. The 25% additional insurance available for debris removal expense is eliminated when this endorsement is attached.

FP 05 04-Fire Extinguisher or Fire Extinguishing Systems Expense Coverage

Coverage is added for recharging fire extinguishers or extinguishing systems when the discharge is due to a covered cause of loss. The coverage also pays for damage to property when the extinguisher or system discharges accidentally. The limit is selected by location. No deductible applies.

FP 05 05-Agritainment - Property Endorsement

Coverage is added for agritainment exposures.

FP 05 20-Scheduled Farm Personal Property Away From the Insured Location

This endorsement extends coverage under FP 00 13-Farm Property-Farm Personal Property Coverage Form to provide coverage off premises and at other locations.

FP 05 21-Replacement Cost-Mobile Agricultural Machinery and Equipment

This endorsement provides replacement cost valuation on machinery and equipment covered under FP 00 30-Mobile Agricultural Machinery and Equipment Coverage Form. In order for replacement cost valuation to apply, the item must be specifically listed and described, be insured to 80% of its replacement value at the time of loss and be damaged to the extent that it must be repaired or replaced.

FP 05 22-Cab Glass Breakage

This endorsement is similar to windshield coverage for motor vehicles. Coverage is extremely broad, with few exclusions. There is no deductible.

FP 05 23-Unit-Owners Coverage

This endorsement is designed for farm families who have condominium exposures at one or more insured locations.

FP 05 24-Assisted Living Care

This endorsement recognizes the exposure and the tremendous responsibility of caring for a disabled or aging family member. Property and liability coverages are extended to a family member of the named insured living in an assisted living care facility. The form includes special categories of property coverage and additional living expense that apply if a loss occurs at the facility and immediate transfer to another facility is needed.

FP 05 25-Increased Limits for Structures Appurtenant to Dwellings

FP 00 12-Farm Property-Farm Dwellings, Appurtenant Structures and Household Personal Property Coverage Form provides 10% of the dwelling limit to apply to appurtenant structures. This endorsement provides a means for the insured to have higher limits on specific eligible structures.

FP 05 26-Expenses Consequential to Enforcement of Ordinances or Laws Affecting Building, Zoning or Land Use (Coverages A and B only)

This endorsement is similar to FP 04 04 and cannot be used if FP 04 04 is attached. It provides a means for the insured to select a percentage of Coverage A (Dwelling) that represents the additional amount needed to accommodate any increases in construction costs due to ordinances or law, including debris removal expenses. The lowest percentage allowed is 10%. Higher amounts are available. This can be used only on FP 00 12-Farm Property - Farm Dwellings, Appurtenant Structures and Household Personal Property Coverage Form.

FP 05 27-Motorized Golf Carts

Golf carts are not included or covered as part of household personal property. This endorsement provides coverage for specifically scheduled golf carts for Special Causes of Loss. Collision coverage is an option that can be added. Coverage applies both on and away from the insured location. This endorsement has additional exclusions and conditions. A deductible that applies to each cart must be indicated.

Note: The major change in the endorsement is related to limited agritainment coverage.

FP 05 30-Exclusion of Loss Due to Virus or Bacteria; Limited Coverage for Fungi, Wet Rot, Dry Rot and Bacteria-Property

This is a restrictive endorsement, not an enhancement. It excludes loss due to virus, bacteria, fungi, wet rot, dry rot, and bacteria. It then provides a very limited amount of coverage for bacteria, fungi, wet rot, dry rot, and bacteria. It cannot be used if FP 01 60 is attached.

FP 05 31-Exclusion of Loss Due to Virus or Bacteria; Limited Coverage for Fungi, Wet Rot, Dry Rot and Bacteria-Farm Dwellings, Appurtenant Structures and Household Personal Property

The coverage provided by this endorsement applies to only coverage Form FP 00 12-Farm Property-Farm Dwellings, Appurtenant Structures, and Household Personal Property Coverage Form. This is a restrictive endorsement, not an enhancement. It excludes loss due to virus, bacteria, fungi, wet rot, dry rot, and bacteria. It then provides a very limited amount of coverage for bacteria, fungi, wet rot, dry rot, and bacteria. It cannot be used if FP 01 60 is attached.

FP 05 35-Limited Coverage for Theft of Building Materials and Supplies While a Building or Structure is Under Construction

The property coverage forms exclude theft coverage for building material and supplies that are waiting to become part of a construction project. This endorsement provides that coverage subject to the terms of the endorsement and the limit of insurance and dates of coverage scheduled in the endorsement.

FP 05 59-Identity Fraud Expense Coverage

This form, subject to a $250 deductible, provides up to $15,000 to address expenses related to an insured having to deal with being victimized by an act of identity fraud involving the covered farming operation. Covered expenses include attorney fees, long distance phone charges, loan reapplication costs, cost of certified mail, and notary costs.

FP 05 60-Equipment Breakdown Protection Coverage

This form expands coverage under the several Farm Property Forms to provide coverage for certain instances of failure of covered equipment. The form protects pressurized and vacuum equipment as well as devices that generate, transmit or facilitate the use of energy. Certain types of computer and communication equipment are also eligible for coverage, but several types of equipment are excluded, such as computer media, certain types of pressurized equipment, equipment related to operating vehicles and equipment parts that, by their nature, are regularly replaced.

FP 10 04-Livestock-Additional Causes of Loss

This endorsement adds coverage for accidental shooting, drowning, electrocution, attack by dogs and wild animals, loading and unloading accidents, and collapse. It can be attached only to FP 00 40-Livestock Coverage Form.

FP 10 14-Theft Exclusion

This endorsement allows the insured to eliminate the theft cause of loss for specified types of property at designated locations. However, if an excluded theft results in an ensuing covered cause of loss, the damage from that covered cause of loss is covered.

It can be attached to any Farm Property Coverage Form and can apply to all classes of property, if desired.

FP 10 15-Windstorm or Hail Exclusion

This endorsement deletes the windstorm or hail cause of loss in all Farm Property Coverage Forms. The exclusion can be limited to apply only at certain property at scheduled locations.

FP 10 16-Vandalism Exclusion

The vandalism cause of loss coverage may be removed for specific property or for all property. However, if vandalism results in a covered cause of the loss, coverage applies to the resulting loss, but all other vandalism is excluded.

FP 10 21-Exclusion of Certain Computer-Related Losses

This endorsement excludes coverage for any loss or damage related to the inability of a computer system to process certain calendar dates. It developed as a reaction to these concerns when the calendar date went from the year 1999 to the year 2000 (Y2K).

FP 10 34-Exclusion of Loss Due to By-products of Production or Processing Operations (Rental Properties)

If an owned building is damaged by by-products of a tenant's production or processing, that damage is not covered when this endorsement is attached. The exclusion applies whether or not the activity is legal.

FP 10 39-Earthquake Inception Extension

When an earthquake begins prior to a policy's inception date, there is no coverage under that policy for earthquake damage that subsequently occurs after the inception date. This endorsement modifies that limitation to cover such damage provided the earthquake started within 72 hours of the policy's inception date.

FP 10 40-Causes of Loss-Earthquake Form

This endorsement provides the additional Cause of Loss of Earthquake and Volcanic Eruption. It contains separate limitations, exclusions, and definitions from those found elsewhere in the policy or coverage form. The major change is the manner in which the deductible is calculated, but actual impact is anticipated to be small. Examples are provided in how to compute the deductible properly.

FP 10 57-Coverage for Damage Sustained Only By Tires in Collisions, Upsets Or Overturns Of Mobile Agricultural Machinery And Equipment

Instances where loss only involves tires are excluded. This form allows an insured to purchase separate coverage to protect the large and expensive vehicle parts.

FP 10 60-Causes Of Loss Form - Farm Property

This form allows selection of coverage for farm structural and personal property to apply on either a basic, broad or special form basis

FP 12 02-Protective Safeguards

This endorsement applies only for the fire cause of loss and replaces IL 04 15. It is required when the insurance company provides a premium credit because of any listed protective safeguard. This endorsement lists and describes the various scheduled services or protective safeguards on the insured's premises and requires that the insured keep them in working order. Protective safeguards are identified by a symbol for automatic sprinkler systems, automatic fire alarms, security services, and service contracts with private fire departments.

Important Note: This is a warranty. If a fire loss occurs and the described systems are not in proper working order at the time, the insurance company will not pay for the loss.

FP 12 09-Limitation on Windstorm or Hail Coverage for Roof Surfacing

This endorsement restricts coverage. It contains two potential limitations. The first changes valuation on roofs from replacement cost to actual cash value. The second excludes loss or damage by wind or hail to the roof that is considered only superficial or cosmetic. The premises must be scheduled along with the limitation selection(s).

FP 12 10-Actual Cash Value-Dwellings and Appurtenant Private Structures

The standard valuation for a dwelling on FP 0012- Farm Property-Farm Dwelling, Appurtenant Structures, and Household Personal Property Coverage Form is replacement cost, subject to 80% insurance to value. This endorsement allows the settlement terms to be changed to actual cash value for scheduled locations and/or dwellings.

FP 12 11-Loss Payable Provisions

The insured lists all loss payees and their specific interests on this endorsement form. It explains how each type of creditor is treated and the interest handled at the time of loss.

FP 12 12-Burglary and Robbery Protective Safeguards

Rate and premium credits are provided if certain burglary and robbery protective safeguards are in place. This form lists and describes the protection systems that apply and details that coverage does not apply if the systems described are not kept in proper working order. Warning: This is a warranty that can void coverage.

FP 12 18-Glass or Safety Glazing Material - Building or Structure, Storm Door or Storm Window - Tenant's Policy

The farm property coverage forms include building glass that makes up part of a building. There is no glass coverage if a named insured does not have building coverage. This endorsement is used to cover building glass when a tenant is contractually obligated to insure it. The glass must be described and a limit and the causes of loss form that applies entered on the endorsement schedule. A separate deductible may be entered on the endorsement schedule.

FP 12 29-Peak Season

Farming operations do not have the same values on hand at all times during the year but maximum amounts by season are predictable. This endorsement allows the insured to increase the normal Coverage E and/or Coverage F limits to higher limits for specific time periods to reflect seasonal changes and increases in values on the premises.

FP 13 01-Value Reporting Endorsement

This endorsement allows the named insured to select a high limit of insurance but pay only for the average value actually on hand. It requires additional paperwork and record keeping because property values present are reported monthly and may create a greater chance of penalties because of improper reporting but it does prevent under and over insurance issues.

FP 13 02-Report of Values

This is used with FP 13 01-Value Reporting Endorsement. This is a suggested form to use for reporting values if the insured decides to report values. It gives instructions on what to report, the dates to use, and the time when a report should be submitted.

FP 13 03-Supplemental Report of Values Form

This form is used if there is insufficient space on the FP 13 02-Report of Values.

FP 14 01-Coverage G-Damage to Below-Ground Foundations of Buildings or Structures and Related Consequential Expenses

This endorsement provides the means to cover the foundations and costs associated with those foundations on an individual building basis. An additional limit of insurance is provided to reflect the additional value represented by the coverage.

FP 15 01-Disruption of Farming Operations

Loss of income is a serious concern for any farming operation. This endorsement adds coverage for loss of income and extra expenses caused by or resulting from covered loss or damage to farm buildings and/or mobile agricultural machinery and equipment.

FP 15 02-Income Loss and Expense Coverage for Computer-Related Date Processing and Other Electronic Problems

This endorsement provides coverage for loss of business income or extra expenses incurred caused by certain computer equipment processing problems related to the inability of a computer system to process certain calendar dates. It developed as a reaction to these concerns when the calendar date went from the year 1999 to the year 2000 (Y2K).

FP 16 01-Coverage G-Barns, Outbuildings and Other Farm Structures Statement of Values

If endorsement FP 04 28-Blanket Insurance Endorsement is attached to the farm policy, a statement of values is required for all property included in the blanket. This is the proper form to use to provide that information.

What Are Farm Liability Endorsements?

The Farm Liability Endorsements are as follows:

FL 01 16-Exclusion-Migrant and Seasonal Agricultural Worker Protection Act

This mandatory endorsement excludes all damages due to awards from the Migrant and Seasonal Agricultural Worker Protection Act and successor laws.

FL 01 63-Amendatory Endorsement

This is a mandatory endorsement, unless FL 04 03 is attached to the policy. It adds an additional exception to the pollution exclusion that provides coverage for smoke or heat pollution caused by the standard burning of crop stubble. In addition, it provides a $25,000 aggregate limit for loss or damage caused by chemical drift. Chemical drift includes eligible drifts that naturally occur during normal farm operations but does not include chemical drift resulting from chemical treatments by aircraft.

FL 04 02-Limited Product Withdrawal Expense Coverage

This endorsement reimburses the named insured's product withdrawal expenses. It does not provide any liability coverage or coverage for the cost or expense to defend claims or suits. It is subject to the aggregate limit, deductible amount, participation percentage for each product withdrawal, and cut-off date on the endorsement schedule.

FL 04 03-Limited Farm Pollution Liability Coverage

This endorsement may be used in place of the mandatory FP 01 63 -Amendatory Endorsement Form described immediately above. Coverage provided is for the sudden and accidental dispersal or release of chemicals normally found in a farming operation if the dispersal or release is not in violation of any law or ordinance. The insured selects the sublimit that applies to this coverage.

FL 04 06-Additional Residence Rented to Others

This endorsement expands coverage to include dwellings rented to others and scheduled on this endorsement. The exclusion in the policy is modified to accommodate this change.

FL 04 07-Additional Insured and Residence Premises

This endorsement permits additional members of the named insured's household to be specifically named and added to include them as insureds under the farm policy liability coverage. There is no requirement that a blood relationship or dependency situation exists in order for coverage to be available. In addition, other residences can be added to the policy as insured locations.

FL 04 11-Basic Farm Premises Liability

Despite the FL designation, this is actually a Commercial General Liability endorsement. It is attached to a Commercial General Liability policy to provide coverages similar to those in the Farm Liability policy. This coverage does not include the personal aspects of the farm. The major change is modifying the professional exclusion to also exclude claims due to the insured's not properly supervising those providing such services.

FL 04 12-Personal Liability

In the same way, as FL 04 11 above, this endorsement is attached to the Commercial General Liability policy. It adds personal coverage to the CGL. Many changes occurred in the 04 16 edition but all reflect the changes made throughout the many forms changed with this update. Some changes are beneficial, many are editorial, and some are detrimental.

FL 04 22-Electronic Data Liability

This endorsement first takes away coverage by adding Access Or Disclosure Of Confidential Or Personal Information And Data-related Liability Electronic Data exclusions to the Farm Liability Coverage Form. It then adds back coverage back for loss of electronic data that occurs only because tangible property is physically damaged. However, electronic data continues to not be considered tangible property. Coverage is subject to the loss of electronic data limit on the endorsement schedule, includes a definition for electronic data, and redefines property damage.

FL 04 29-Additional Farm Premises Rented to Others

This endorsement can be used to schedule farm premises that are rented to others.

FL 04 30-Limited Farm Pollution Liability Extension Endorsement

This endorsement provides coverage for pollution incidents that occur in and around farm structures other than storage tanks.

FL 04 32-Additional Insured-Executors, Administrators, Trustees or Beneficiaries

This endorsement includes as insureds those persons administrating, benefiting from, or inheriting the estate of the insured when the insured dies. Coverage is limited to what the law permits. When the endorsement is required by contract, coverage and limits are further limited to not being broader than what that contract requires.

FL 04 37-Broad Farm Premises Liability

This endorsement combines the limited expanded pollution coverage in FL 04 30 described above and the broadened coverage in FL 04 11 into one endorsement. It is attached to the Commercial General Liability coverage. The major change is modifying the professional exclusion to also exclude claims due to the insured's not properly supervising those providing such services.

FL 04 40-Animals In Contests or Stunting Activities

This endorsement provides liability coverage arising out of or resulting from animals in stunting activities and other prearranged contests. Coverage is for both Liability and Medical Payments.

FL 04 41-Animal Rides for Profit or Charity

This endorsement provides Liability and Medical Payments Coverage when saddle animals are used for rides for charity events or other events conducted for a profit.

FL 04 42-Limited Home Day Care Coverage

This endorsement provides liability coverage for daycare operations conducted by the insured. The endorsement schedule must be completed and coverage provided is for both liability and medical payments. Coverage applies for services provided by the insured as well as for services provided by employees of the insured.

FL 04 43-Business Activities

This endorsement is used to provide liability coverage for business activities conducted by the insured on the premises and described in the form. The endorsement has a space provided to indicate whether the liquor exclusion is to apply or not. The liquor exclusion is much more restrictive than the previous one because all liquor-related injuries are excluded even if the insured did not provide the alcohol but permitted it to be on premises. The professional exclusion is also modified to exclude claims due to the insured's not properly supervising those providing such services.

FL 04 44-Coverage for Physical Injury to Crops and Animals Due to Certain Crop-Dusting Operations Performed by Licensed Independent Contractor by Aircraft (Limited Crop-Dusting Coverage)

This endorsement provides liability coverage for direct loss or damage to crops and/or livestock, caused by or resulting from crop-dusting operations. Coverage applies only when crop-dusting operations are performed by an independent contractor. The aggregate limit for this coverage is $25,000 but may be increased.

FL 04 45-Employment-Related Practices Coverage Extension

This endorsement extends the insurance provided under coverage H and Coverage I to apply to bodily injury or property damage arising out of several employment-related practices by the insured. It also removes several liability exclusions in the policy that relate to employment practices.

Note: This endorsement has not been revised since 1988 and should not be used due to conflicts with the FL 00 20. A separate employment related practices coverage form would be more prudent.

FL 04 50-Additional Insured-Farm Liability

This endorsement is used to provide liability coverage to a number of additional interests without a premium charge. Eligible parties include persons or organizations from whom the insured leases land, persons or organizations that exercise financial control over the insured and nonresident co-owners of a non-farm residence. Coverage is limited to what the law permits. When the endorsement is required by contract, coverage and limits are further limited to not being broader than what that contract requires. Coverage for a vendor is slightly more limited but in keeping with CG 2015-Additional Insured-Vendors.

FL 04 65-Farm Employers Liability and Farm Employees Medical Payments Insurance

This endorsement provides employers' liability and medical payments coverage for farm employees. Certain designated employees may be specifically listed and excluded. The exposure basis for premium determination is each $1,000 of payroll. The basic farm liability coverage part provides employers liability coverage, including medical payments coverage for residence employees. An additional premium charge is made for each residence employee in excess of two. The basic policy premium charge contemplates the liability coverage and medical payments coverage with a $1,000 limit. This endorsement is unique because it can be attached to either the Commercial General Liability coverage form or the Farm Liability Coverage form.

FL 04 69-Custom Farming Liability Coverage

Farmers performing farming operations for others are engaged in custom farming operations. The farm liability coverage form includes coverage for liability from custom farming only if receipts are less than $5,000. This endorsement provides liability coverage if receipts from custom farming operations exceed $5,000.

Example: Betty's time is pretty much used up running her own farm. However, each year, she spends a couple of days helping a neighbor harvest his alfalfa crop for a fee.

FL 04 71-Owned Snowmobile Coverage

Snowmobiles are included in the farm liability policy but only when operated on the insured premises. Off premises operations are not covered, but this endorsement eliminates that exclusion in the farm liability policy. It also modifies other sections of the policy so it covers snowmobiles as long as they are not licensed for road, used in a business, rented to others, or used in racing.

FL 04 74-All Terrain Vehicle Coverage

Coverage for all-terrain vehicles (ATV) applies only if used on owned premises or property. This endorsement broadens the coverage to apply to any listed ATVs on the schedule operating on or off the insured premises. Coverage does not apply if the ATV is used to carry others for a charge, is rented to others, or is used in any racing or competition event.

FL 04 77-Insured's Liability While Employed by Others in Nonfarm Jobs

This endorsement extends the coverage provided by the farm liability policy to apply to the insured when employed as a salesperson, collector, messenger, clerical office employee, teacher (including optional coverage for corporal punishment), or other types of job or occupation. The professional exclusion is modified to exclude claims due to the insured not properly supervising those providing such services.

FL 04 83-Watercraft

This endorsement provides a means to schedule and cover owned watercraft normally excluded by the policy. The watercraft insured cannot be rented out or used to carry people for a fee. In addition, the watercraft is not to be used in races or competitions, except under very unusual circumstances and in very limited cases.

FL 05 01-Agritainment - Liability

Coverage is added for agritainment exposures.

FL 05 20-Amendment of Advertising Injury Definition

This restriction of coverage eliminates the violation of a person's privacy rights from the definition of advertising injury.

FL 05 21-Amendment of Personal Injury Definition

This restriction of coverage eliminates the violation of a person's privacy rights from the definition of personal injury.

FL 05 32-Limited Fungi or Bacteria Coverage Liability

This excludes coverage for loss or damage caused by fungi and bacteria and then adds back a very limited scheduled aggregate amount of coverage. This limited coverage is an alternative to the total coverage exclusion in FL 10 35.

FL 05 62-Amendment of Insured Contract Definition

This endorsement limits contractual coverage to only injuries or damages caused by the named insured or those acting on the named insured's behalf. This could represent a significant reduction of coverage. Coverage of others that is assumed by the insured is limited to what the law permits.

FL 10 01-Exclusion-Employment-Related Practices

This endorsement is used to exclude all coverage for employment-related practices, including those that occur before and following employment.

FL 10 02-Exclusion-Personal and Advertising Injury Liability

This endorsement is used to completely exclude coverage for the personal and advertising injury liability coverage provided in the farm liability policy.

FL 10 03-Exclusion-Advertising Injury Liability (04 16 change - editorial)

This endorsement is used when only coverage for advertising injury liability is to be excluded. When this endorsement is used, the coverage under the farm liability policy for Personal Injury Liability coverage is not affected and remains active and in force.

FL 10 05-Exclusion-Designated Products-Off Premises

This endorsement excludes Products coverage on certain listed and described merchandise or goods while coverage remains in force for others. It is used in cases where the insurance company is unwilling to cover all products liability exposures of a given operation. This form permits the insured to work with the insurance company to customize coverage.

FL 10 06-Exclusion-Products Related to A Specific Premises or Operation

This endorsement allows the insured to exclude products at one operation or premises while retaining coverage for other products at other locations.

FL 10 07-Exclusion-Products and Completed Operations

This endorsement completely excludes liability coverage for products and completed operations.

FL 10 08-Contractual Liability Limitation

This endorsement redefines an insured contract by removing item e. but making no change to items a. through d. The result of this change is a significant restriction in coverage.

FL 10 09-Exclusion-Athletic Activities-Medical Payments

Person engaged in athletic activities is not covered under medical payments when this endorsement is attached.

FL 10 10-Liability Exclusion-Residence Employees of Designated Insureds

Residence employees receive special treatment in the Farm Liability policy. Residence employees are included and covered, even when coverage for other employees is excluded or restricted. This exclusion removes the residence employee exceptions to the exclusion but residence employees are still covered while assisting the insured in personal sporting activities.

FL 10 12-Exclusion - Access or Disclosure of Confidential or Personal Information and Data-Related Liability - With Limited Bodily Injury Exception

This is a mandatory endorsement that limits most liability associated with confidential or personal information release.

This endorsement is not to be attached if either FL 10 13 or FL 10 14 described are attached.

FL 10 13-Exclusion - Access or Disclosure of Confidential or Personal Information and Data-related Liability - Limited Bodily Injury Exception Not Included

This is even more restrictive than the FL 10 12 and eliminates the small amount of bodily injury coverage in the FL 10 12. This is more of an absolute exclusion.

FL 10 14-Exclusion - Electronic Data (Bodily Injury and Property Damage Liability Only) and Access or Disclosure of Confidential or Personal Information (Personal or Advertising Injury Liability Only)

This is identical to FL 10 12 except that instead of a limited exception for bodily injury it provides a total exception for bodily injury.

FL 10 22-Exclusion-Computer-Related Date Processing and Other Electronic Problems

This endorsement excludes coverage for any loss or damage related to the inability of a computer system to process certain calendar dates. It developed as a reaction to these concerns when the calendar date went from the year 1999 to the year 2000 (Y2K).

FL 10 25-Exclusion-Computer-Related Date Processing and Other Electronic Problems-With Exception for Bodily Injury on the Insured Location

This endorsement excludes coverage for any loss or damage related to the inability of a computer system to process certain calendar dates. It developed as a reaction to these concerns when the calendar date went from the year 1999 to the year 2000 (Y2K). It makes an exception for Bodily Injury related to such a loss that occurs at the insured's location or premises.

Example: Jim is inspecting a refrigerated storage room at Smythe's Mega-Farms. The storage facilities are highly automated. Due to a program glitch, the storage room door's locking system is engaged, trapping Jim for several hours. Jim is rescued but has to be treated for hypothermia. This form would cover Jim's injury.

FL 10 35-Fungi or Bacteria Exclusion-Liability

This endorsement modifies the coverage provided by the farm liability coverage form. It excludes bodily injury, property damage and personal injury resulting from or arising out of any feature or element of fungi or bacteria. This exclusion applies regardless of any other cause, event, material or product involved with the injury regardless of the sequence in which they occur.

FL 10 40-Certified Acts of Terrorism Aggregate Limit; Cap on Losses from Certified Acts of Terrorism

FL 10 44-Exclusion of Certified Nuclear, Biological, Chemical or Radiological Acts of Terrorism; Cap on Losses from Certified Acts of Terrorism

FL 10 50-Exclusion-Silica or Silica-Related Dust

This form bars coverage for injury to third parties that is related to exposure to silica particles.

FL 10 64-Exclusion-Injury or Damage from Genetically Modified Beans, Crops, Grains, Seeds, Plants, Shrubs, or Trees

Bodily injury and property damage that are the result of genetically modified crops as defined in the endorsement is excluded. This is not limited to only products and completed operations types losses. Personal and advertising injury coverage is not subject to this exclusion.

FL 10 65-Exclusion-Injury or Damage from Genetically Modified Animals(s) or Fish

Bodily injury and property damage that are the result of genetically modified animals as defined in the endorsement is excluded. This is not limited to only products and completed operations types losses. Personal and advertising injury coverage is not subject to this exclusion.

FL 10 67-Conditional Exclusion of Terrorism (Relating To Disposition of Federal Terrorism Risk Insurance Act)
FL 10 68-Conditional Exclusion of Terrorism Involving Nuclear, Biological or Chemical Terrorism (Relating To Disposition of Federal Terrorism Risk Insurance Act)

FL 10 69-Conditional Limitation of Coverage for Terrorism on an Annual Aggregate Basis (Relating To Disposition of Federal Terrorism Risk Insurance Act)

FL 10 70-Cap on Losses from Certified Acts of Terrorism

FL 10 71-Exclusion of Other Acts OF Terrorism Committed Outside the United States; Cap on Losses from Certified Acts of Terrorism

FL 10 73-Exclusion of Certified Acts of Terrorism

FL 10 75-Exclusion of Certified Acts of Terrorism and Exclusion of Other Acts of Terrorism Committed Outside the United States

FL 10 76-Exclusion of Punitive Damages Related To A Certified Act of Terrorism

FL 10 99-Animal Liability

This is an optional endorsement that can be used to exclude liability coverage for only the specific animals or specific classes of animals described in the endorsement. It can also be used to exclude liability for all animals except those specifically listed. Because the injuries that occur because of animals can be significant, if this endorsement is used, it should be acknowledged in writing by the named insured and an explanation of its use well documented.

What Are Farm Umbrella Endorsements?

The Farm Umbrella Endorsements are as follows:

FB 04 01-Farm Premises and Personal Umbrella Liability

Despite the FB designation, this is actually a Commercial Umbrella endorsement. It is attached to a Commercial Umbrella policy to provide coverages similar to those in the Farm Umbrella policy. This coverage can include, if selected in the schedule, personal liability and custom farming liability.

Changes in this form reflect those changes made in the Farm Umbrella Liability Policy.

FB 04 02-Broadened Bodily Injury Definition

This endorsement expands the definition of bodily injury to include mental anguish and mental injury even when not accompanied by other bodily injury.

FB 04 05-Amendment of Insured Contract Definition

This endorsement limits contractual coverage to only injuries or damages caused by the named insured or those acting on the named insured's behalf. This could represent a significant reduction of coverage. Coverage is limited to what the law permits.

FB 04 16-Amendment of Advertising Injury Definition

This restriction of coverage eliminates the violation of a person's privacy rights from the definition of advertising injury.

FB 04 17-Amendment of Personal Injury Definition

This restriction of coverage eliminates the violation of a person's privacy rights from the definition of personal injury.

FB 10 01-Nuclear Energy Liability Exclusion Endorsement (Broad Form)

This endorsement is a mandatory exclusion identical to IL 00 17, the nuclear energy liability exclusion that applies to the underlying coverage forms.

FB 10 02-Exclusion-Personal and Advertising Injury Liability

This endorsement excludes all personal and advertising injury liability coverages.

FB 10 03-Exclusion-Advertising Injury Liability

This endorsement excludes all advertising injury liability coverage. It does not address personal injury liability, that coverage remains intact.

FB 10 04-Exclusion-Custom Farming

This endorsement excludes liability coverage for all custom farming operations, even that which generates less than $5,000 in annual receipts.

FB 10 05-Exclusion-Designated Products-Off Premises

This endorsement includes a schedule on which products to be excluded are listed and described. Any injury or damage that occurs caused by any listed product is excluded once the product is removed from the insured premises.

FB 10 06-Exclusion-Products Related to a Specific Premises or Operation

This endorsement includes a schedule on which premises or operations to be excluded are listed. Any injury or damage that occurs caused by or arising out of a listed location is excluded.

FB 10 07-Exclusion-Products and Completed Operations

This endorsement excludes bodily injury or property damage caused by or arising out of all products and completed operations of the insured. The exclusion contains an exception for custom farming operations.

FB 10 08-Contractual Liability Limitation

This endorsement deletes item f. in the definition of an insured contract. Since that item is broader and more open-ended than the other items in the definition, coverage for losses due to contractually assumed exposures is reduced and more limited.

FB 10 09-Exclusion-Employers Liability

This endorsement deletes Employers Liability coverage by removing the reference to underlying policies dictating the coverage that applies in the Umbrella Liability policy. As a result, the Employers Liability coverage is excluded under the umbrella policy, regardless of the coverage provided by the primary insurance.

FB 10 10- Exclusion-Residence Employees of Designated Insureds

Residence employees receive special treatment in the Farm Umbrella Liability policy. Residence employees are included and covered, even when coverage for other employees is excluded or restricted. This exclusion removes the residence employee exceptions to the exclusion and puts them in the same category as all other types of employees and excludes coverage for bodily injury or property damage caused by them. However, coverage for residence employees still applies when they assist the insured in personal sporting activities.

FB 10 11-Exclusion-All Hazards in Connection with Designated Premises

This endorsement includes a schedule. Any location listed and described on the schedule is excluded from all coverage under the Farm Umbrella Liability policy.

FB 10 12-Exclusion-Designated Work

This endorsement is used to list and describe specific types of work. As a result, all bodily injury, property damage, personal injury and advertising injury liability related to that work is excluded. The work must be described carefully and in exacting detail to be certain that there are no questions or ambiguities that could cause confusion at the time of loss.

FB 10 13-Exclusion-Designated Auto, Recreational Motor Vehicles, Aircraft or Watercraft

This endorsement is used to exclude a particular vehicle, watercraft, or aircraft from coverage in the Farm Umbrella Liability policy.

FB 10 14-Fungi or Bacteria Exclusion

This endorsement excludes all bodily injury or property damage loss caused by and fungus or bacteria.

FB 10 15-Exclusion-Designated Non-farm Activities

This endorsement allows risky or dangerous activities not related to farm operations to be excluded while continuing coverage for the farming activity. The activities excluded must be described as completely as possible so there is no confusion between what is covered and what is excluded.

Note: Whenever excluding a specific activity, the description must be carefully drafted. The named insured's signature on the endorsement can be helpful, especially if the reason for the exclusion is well documented.

FB 10 16-Total Pollution Exclusion

This endorsement amends this bodily injury and property damage exclusion to be a total exclusion. It also removes the exceptions for hostile fire or fumes from heating equipment.

FB 10 18-Exclusion-Silica or Silica-Related Dust

This form bars coverage for injury to third parties that is related to exposure to silica particles.

FB 10 22-Exclusion-Computer-Related & Other Electronic Problems

This endorsement excludes coverage for any loss or damage related to the inability of a computer system to process certain calendar dates. It developed as a reaction to these concerns when the calendar date went from the year 1999 to the year 2000 (Y2K).

FB 10 25-Exclusion-Computer-Related Date Processing & Other Electronic Problems-With Exception for Bodily Injury on the Insured Location

This endorsement excludes coverage for any loss or damage related to the inability of a computer system to process certain calendar dates. It developed as a reaction to these concerns when the calendar date went from the year 1999 to the year 2000 (Y2K). It makes an exception for Bodily Injury related to such a loss that occurs at the insured's location or premises.

FB 10 32-War Liability Exclusion

The umbrella policy does not contain a war exclusion, so this endorsement is needed in order to exclude it.

FB 10 64-Exclusion-Injury or Damage from Genetically Modified Beans, Crops, Grains, Seeds, Plants, Shrubs or Trees

Bodily injury and property damage that are the result of genetically modified crops as defined in the endorsement is excluded. This is not limited to only products and completed operations types losses. Personal and advertising injury coverage is not subject to this exclusion.

FB 10 65-Exclusion-Injury or Damage from Genetically Modified Animal(s) or Fish

Bodily injury and property damage that are the result of genetically modified animals as defined in the endorsement is excluded. This is not limited to only products and completed operations types losses. Personal and advertising injury coverage is not subject to this exclusion.

FB 10 69-Exclusion-Designated Event

This restrictive endorsement can be used to exclude all liability that arises from the event scheduled on this endorsement. The event must be well defined, and documentation supporting such an exclusion should be maintained. The named insured's signature on the endorsement can be helpful is a coverage dispute should arise.

FB 10 99-Exclusion-Animal Liability

This is an optional endorsement that can be used to exclude liability coverage for only the specific animals or specific classes of animals described in the endorsement. It can also be used to exclude liability for all animals except those specifically listed. Because the injuries that occur because of animals can be significant, if this endorsement is used, it should be acknowledged in writing by the named insured and an explanation of its use well documented.

FB 12 01-Policy Changes

This endorsement form is used to effect changes in policy coverage, terms, and conditions.

FB 21 10-Split Uninsured and Underinsured Motorists Coverage Limits

This endorsement recognizes that the limits for uninsured and underinsured motorists coverages are often split, and it permits an excess limit to be entered specifically for the uninsured and underinsured coverages.

FB 99 03-Waiver of Transfer of Rights of Recovery Against Others to Us

The named insured can list persons and organizations on this form against which recovery or subrogation rights have been waived prior to the occurrence of a loss.

What Are Farm And Ranch Insurance Endorsements? - The Bottom Line

What are farm and ranch insurance endorsements? An endorsement alters the Farm And Ranch Policy and becomes part of your commercial insurance agreement, and it remains in force until the contract term expires.

The only exception to the above rule is if the farm and ranch endorsement has a specific or limited term to which the endorsement is valid. It may renew under the same terms and conditions of the rest of your policy.

Additional Commercial Insurance Endorsements Information

Learn about small business commercial endorsements that add, remove, or change your policy's coverage by altering the standardized coverage form.


Commercial Insurance Endorsements

So commercial insurance endorsements allow you to customize your policy to better fit your business insurance needs without having to buy a new policy.

So business insurance endorsements can either modify the basic policy by removing coverages that you don’t need, or remove one or more exclusions, adding those coverages back into the policy.

There are many types of commercial insurance endorsements - and while some favor the insurer (by excluding coverage) and some benefit the insured (by adding coverage), below is a list of some of the most common uses for business insurance endorsements:


  • Additional Insured: This is one of the most common endorsements that adds someone other than you to your insurance policy. It is typically required by some sort of contract. Common additional insureds are landlords, general contractors, vendors or customers.
  • Administrative Changes: Newly issued policies can include mistypes, misspellings, or missing words altogether. To correct these errors, the insurer would add an endorsement, rather then having to cancel and issue a new policy. If a policyholder changes their name, an endorsement would reflect that too.
  • Changing Or Adding Addresses: This endorsement covers any change to the insured's property like moving your office to a new location, or expanding to a another location.
  • Deductible Changes: This endorsement manages who can change your deductible as well as when and how much it can be changed.
  • Increased Limits: Occasionally companies need to add endorsements to increase the limits of insurance. For example, you'd use an endorsement to extend workers' compensation benefits not covered by state law. Or, to get a contract you need higher limits on your general liability policy.

Making a policy change usually affects your insurance premium. Anytime coverage is altered there is likely a cost associated with how the policy premium is calculated. Adding coverage usually makes the premium increase, while excluding coverage can reduce the premium you pay.


Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

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