Did you know. Premier Dairy

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2 Understanding Your Needs Dairy is the third largest agricultural industry in Canada and represents a significant share of the agricultural marketplace. Canadian milk and dairy products have an international reputation for excellence with strict quality standards on dairy farms and processing plants. Growing operations and advanced technology has changed the insurance requirements for this class of business. Focus On Dairy Western General, the agricultural division of Economical Insurance has extensive experience offering coverage in the agricultural sector. We have listened to you in creating Premier Dairy a comprehensive insurance product, specifically designed to target high quality dairy producers. A Premier Dairy policy protects large scale producers from coast-to-coast who want a flexible product, fully customizable coverage and great value for their business. Premier Dairy policyholders: Have a minimum of 30 milking cattle Derive their main source of revenue from dairy operations Are 100% Canadian owned May be an independent or family owned business partnership or corporation Have been in business for at least five years Have modern facilities and machinery Show pride of ownership through excellent quality control and management practices Are financially sound Let our expertise work for you. Contact your broker to discuss the insurance requirements for your agricultural accounts. Did you know In 2011, dairy production in Canada generated total net farm receipts of $5.8 billion and sales of $13.7 billion, representing 16.4% of the Canadian food and beverage sector. The Canadian dairy cattle population totals 1.4 million and the typical Canadian dairy farm has 77 cows. There are 453 milk processing plants (including 273 federally inspected) contributing to more than 22,500 jobs across Canada. About 75% of Canadian dairy herds are enrolled in milk recording programs. In 2011, Canadian cows enrolled in official milk recording programs produced on average 9,774 kg of milk per lactation (305 days) with an average content of 3.84% fat and 3.22% protein. Production of organic milk, although fairly limited, is steadily increasing in Canada reaching 90 million litres in 2010/11; production has more than doubled in the last five years. Government of Canada, Homeowners and Residential Insurance Coverage* Gold, silver and bronze packages are available Qualified risks are eligible for the Increased Special Limits endorsement, Single Limit and Guaranteed Replacement Cost Personal lines endorsements and property coverage (e.g. rented dwelling, seasonal) are available and can be tailored to the client s needs. *For coverage specifics, refer to the broker manual for your province. Agricultural Property Coverage Coverage for the agricultural portion is covered under (form 4280) You can choose to cover all agricultural property under one blanket limit or you can schedule each type separately (buildings, livestock, machinery and produce). BUILDINGS Broad Form coverage and Replacement Cost coverage are available for buildings 20 years of age or less. Broad Form coverage offers protections against: Power surge on equipment attached to the building (this is usually covered only under a boiler policy) Snow-load and collapse losses Extensions in addition to the basic coverage: Agribusiness endorsement (form 4283) LIVESTOCK Named Multi Perils coverage is provided for all livestock (form 4280) Fire or lightning Explosion Impact by aircraft, spacecraft Smoke or land vehicle Windstorm or hail Riot, vandalism or malicious acts Falling objects Leakage from fire protection Earthquake equipment Flood (rising waters) Collapse of buildings, bridges Theft of animals and culverts Drowning Collision/derailment Electrocution of carrying vehicles Fumes Accidental shooting Stranding/sinking burning (except by the policyholder of carrying vessels or policyholder s employees) Accidental physical Attack by non-owned dogs entrapment or wild animals Huddling/piling/smothering/freezing Extensions in addition to the base wording include: Limited Mortality coverages (form 5850) Limited Mortality Option A: casting, hardware ingestion, bloat, rabies, blackleg, colic and strangulation, death and physical injury necessary destruction as a direct result of the accidental fracture of a bone or bones within the animal. Limited Mortality Option B: death or destruction of animals as a result of the birth of an offspring (including milk fever).

3 Non Owned Livestock (form 5652) Automatic limits of $5,000 per animal with a $50,000 aggregate are included. Higher limits are available. Optional Livestock Coverage*: Electrical Power Interruption and Mechanical Breakdown of air circulation equipment (form 5851) Coverage is for sudden and accidental death or destruction of livestock caused by electrical power interruption or mechanical breakdown of fans, blowers or other equipment designed to control air circulation. * Certain Warranties apply. Backup generator and alarms are required for coverage to apply. PRODUCE/MILK/HARVESTED CROPS Broad Form coverage provided for owned produce (form 4280) Produce coverage provides protection for: Harvested crops (e.g. harvested hay and grains), seeds, feeds, herbicides, pesticides, commercial fertilizers, milk, eggs, fruit, vegetables and anything that is an agricultural product of the soil. Produce coverage does not cover tobacco, lumber or growing crops. Limits for farm produce and supplies include packing, wrapping and advertising materials for use with harvested produce. Spoilage Coverage (form 5797): on-premises power interruption is provided up to the limit of insurance for produce, and off-premises power interruption up to $10,000. Technology has positively changed the way milk is produced Premier Dairy includes coverage for computerized equipment for dairy production. MACHINERY Broad Form coverage provided for all owned machinery (form 4280) Premier policyholders have three claims settlement options when purchasing coverage: Replacement cost up to five years. This option can be selected if the agriculture portion of the account is written on a blanket or scheduled basis. Valued Form up to 10 years (stated amount). The policyholder can specify a limit for select pieces of equipment. Other insured machinery would be settled on an actual cash basis. BOILER Dairy operations have extensive computerized equipment. Boiler and Machinery coverage will respond to equipment losses due to electrical and/or mechanical breakdown. While coverage is optional, it will be quoted on all Premier policies. Limited Pollution Liability* Occurrence based coverage (form 5778) Premier automatically includes coverage for $1,000,000/occurrence and $2,000,000/aggregate limits including: Hostile fire (liability limit applicable) Chemical drift losses in conjunction with normal farming operations Sudden and accidental losses which are discovered and reported within 120 hours Limited Pollution Liability coverage does not apply to: Underground tanks (other than manure tanks) currently being used in farming operations are expressly excluded *Provincial specific exclusions apply. Umbrella Umbrella Liability coverage is available and provides coverage for personal, farming and commercial operations. Combined limits up to $12,000,000 (for liability and umbrella) are available, including: Self insured retention of $10,000 Minimum underlying limits of $2,000,000 on farm liability and $1,000,000 automobile liability required A fully completed farm umbrella application is required Umbrella coverage does not apply to: Limited Farm Pollution Liability coverage Employers Liability coverage Forest fire fighting expenses Additional Policy Discounts In addition to all discounts available for regular agricultural business, these additional Premier discounts are available if the policyholder: Files nutrient management plans Has annual water testing Has an organic farm You re established and you know your stuff. Canadian milk and dairy products are world-renowned for their excellence. Choose the insurer that understands your Premier Dairy and how it s evolving.

4 Premier Dairy Enhancement In addition to the Premier Agribusiness endorsement, the Premier Dairy endorsement (form 4285) is added to all Premier dairy policies at no additional charge. Contingent coverage for milk delivery truck $25,000 Animal collision $5,000 per animal and $15,000 aggregate Milk contamination $25,000 Semen and semen tank coverage $25,000 Livestock round-up coverage $2,500 * Higher limits are available for most extensions under the Premier Agribusiness endorsement and the Premier Dairy Enhancement. Canada is at the forefront of new and innovative research in dairy genetics, we have products that evolve as the industry does. Liability* The Farm, Home and Business Liability (form 5672) extends coverage for the policyholder s personal liability and farm liability exposures, and may be extended to cover commercial operations. The standard limit under Premier policies is $2,000,000. The base liability wording includes coverage for: Premises and operations Products and completed operations Employees as additional policyholders Contingent employers liability Blanket contractual Cross liability clause Incidental medical malpractice Non-owned watercraft coverage Custom farming (excluding custom crop spraying) up to $10,000 annual gross receipts Extensions in addition to the basic coverage include: Tenant s Legal Liability Liability limit Voluntary Medical Payments Coverage $5,000 Voluntary Property Damage Coverage $1,000 Personal Injury Liability Liability limit Employers Liability $1,000,000 (Farm Employees max. $50,000 payroll) Showing of animals three times per year Included Voluntary Compensation- Residence $250 weekly Employees indemnity Advertising Liability $50,000 Forest Fire Fighting Expenses (form 5701) $100,000 Non-Owned Auto (form 6063) $2,000,000 SEF 99 (form 6664) Excluding Long-Term Leased Vehicles SEF 96 (form 6663) NOA Limit Contractual Liability SEF 94 (form 5644) $50,000 Legal Liability for Damage to Hired Automobiles OEF 98 B (form 6662) Ontario Only Reduction in Coverage for Lessees or Drivers of Leased Vehicles *Provincial specific exclusions apply. Business Interruption Coverage Coverage is provided for the policyholder s actual business loss. Dairy barns may take longer to build due to specific construction requirements, so Premier automatically provides protection for a 12-month indemnity period with 18-month available (form 5680). Automatic extensions to Business Interruption coverage include: $10,000 off-premises power interruption coverage Ordinary payroll coverage for 90 days Contingent Business Interruption (form 4284) Automatic limits of $100,000 are included. Higher limits are available. Actual Loss Sustained Extension endorsement for contract producers (form 5683) Business Loss coverage for contract growers Premier Agribusiness Endorsement (form 4283) All Premier polices automatically include the following superior coverage: Accounts Receivable $100,000 Automatic Fire Suppression Recharge $100,000 Brands and Labels $25,000 Building Damage By Theft $10,000 Building By-Laws Computer breakdown for mobile $25,000 Farm Machinery Single Dead Stock Removal expenses $1,000 10% over the limit of each building with a cap of $20,000 Multiple Dead Stock Removal expenses Dog (Farm/Working Dog) $1,500 Eco Friendly Endorsement $50,000 Exhibition Floater $25,000 Fences/Corrals $50,000 Feed and Fodder $50,000 Fire Department Charges (1st party) $100,000 Fuel and Fuel Tank $50,000 Harvested Produce/Including Spoilage $25,000 Coverage (excluding feed and fodder) $25,000 aggregate Inflation Protection Included Installation Floater $10,000 Land and Water Clean up $25,000 (1st party pollution) Loss of Use Farm Machinery $100,000 Master Key $10,000 Mortgage Rate Guarantee 60 months (five years) Newly Acquired Building $1,000,000 Newly Acquired Machinery No limit 60 days coverage Newly Constructed Building $500,000 Non-Owned Machinery $250,000 Office Contents $50,000 Computer Hardware $50,000 Media $25,000 Transit $50,000 Breakdown Included Parcel Post $2,500 Pavement $5,000 Personal Property of Employees $2,500 each and $10,000 aggregate Power and Light Poles $10,000 Professional Fees $25,000 Property of Others In Transit $25,000 Property In Transit (Owned) Produce $25,000 Sales Person Samples $2,500 Signs $25,000 Spare Parts $1,000 Standing Grain and Seed Crops $10,000 aggregate Tack $10,000 Tire and Tube Puncture $2,500 Tools $15,000 (including $2,500 off-premises) Valuable Papers $25,000 Vet Supplies/Livestock Medicine $5,000 Water Systems $5,000

5 Services Western General supports Premier dairy policyholders by providing the following coverage and services: Underwriting Excellence Our professional team of Western General underwriters are experienced in the agricultural insurance industry and provide high quality products and services. Risk Control Risk control consultants provide policyholders with risk management advice and onsite infrared thermographic imaging services. This complimentary service assists policyholders in the detection of potential electrical hazards that would otherwise not be visible to prevent loss of property. Boiler and Machinery Look to us for comprehensive coverage including equipment breakdown coverage as well as boiler inspection, loss prevention and risk assessment. Automobile Coverage on fleets or individually rated vehicles are available. Claims Agricultural claims specialists bring hands-on farm experience to the adjustment and settlement processes. Our understanding of farm operations provides policyholders with peace of mind in the event of a loss. farmsinsurance.ca This brochure is intended for promotional purposes only. For exact terms, definitions, limitations and extensions, please refer to the final policy wording. Western General is a division of Economical Insurance. The Economical brand includes the following property and casualty insurance companies: Economical Mutual Insurance Company, Perth Insurance Company, Waterloo Insurance Company, Missisquoi Insurance Company, Federation Insurance Company of Canada Economical Insurance. All Rights Reserved. Economical and related trademarks, names and logos are the property of Economical Mutual Insurance Company and are registered and/or used in Canada. All other trademarks are the property of their respective owners.