Agribusiness Commercial General Liability Coverage AgCGL The Webinar will begin shortly There is no audio at this time. This presentation is being recorded for your viewing pleasure at a future date. The attendance and proctor forms are available under Materials in the Webinar s Console to the right. 100% Participation in Polling Questions is required to receive credit for this class. Even if you do not intend to receive credit, please participate in the polls. You will receive the course number for your state near the end of class. Use the chat window for questions on the content.. The PowerPoint presentation is also available under Materials. 1
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Polling Throughout the class we will be conducting periodic polls We need 100% participation on the polls The polls are intended to check participation but also to create discussion topics throughout the presentation 5
Forms To Complete for CE After class ends Return attendance form Proctors return your form to email address Email address is in chat window or in email sent to you today 6
DOI Requirements We will file your hours with the DOI after the completion of this webinar and we have received the attendance form. You have 48 hours to return the form You will be sent a Certificate of Attendance/Completion by email. Please retain this for your records for five years. 7
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Your Instructor Today Casey Roberts, CIC, AFIS, ACSR Principal, Laurus Insurance Consulting, LLC
Your CIG Representatives Walter Wooten Ag Business Lines Manager wwooten@ciginsurance.com 831 233 5057 Jeri Smith Ag Underwriting Specialist jsmith@ciginsurance.com 831 233 5056 10
CIGU Insurance Education Agribusiness Commercial General Liability Coverage AAIS AgCGL Course # 288538 Approved for 4 Continuing Education Credit Hours In California 11
Disclaimer Not 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 12
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. 13
CIG Introduces Their New AAIS Agribusiness Commercial General Liability Coverage (AgCGL) 14
Polling Question #1 15
What This Course Will Cover Background on AgCGL Eligibility Review of AgCGL Coverage Form Review of available endorsements 16
Background on AAIS Agribusiness Commercial General Liability Coverage AgCGL 17
Industry Issues Changing Nature of Agriculture Agritainment and agritourism Size and number Vertical integration THE AAIS AGRICULTURAL 18
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% 19
Changing Nature of Agriculture Vertical integration Efficiency Market power Grower to consumer Scientific advances THE AAIS AGRICULTURAL 20
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 21
AgCGL Targets Agribusiness processing operations Agribusiness warehousing or storage operations Vertically integrated operations Agritainment/agritourism activities Combine personal, farm, and commercial on a single policy Class combinations Limits do not stack 22
Polling Question #2 23
Eligibility Per CIG Underwriting Guidelines 24
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 25
Eligibility (AAIS) The sale of goods or services to agricultural or agribusiness customers; or Farming operations that supply agricultural commodities for manufacturing or processing 26
Review of the AgCGL Coverage Form 27
AAIS / ISO Farm Liability Policy Structure Policy Common Policy Declarations Common Policy Conditions Liability Declarations Liability Coverage Forms Endorsements 28
AAIS AL 6501 09 08 Page 1 of 1 Named Insured: John and Pipp Appleseed FARM COMMERCIAL LIABILITY COVERAGE DECLARATIONS 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 premises Personal and Advertising Injury Limit $ 1,000,000 any one person or organization General Aggregate Limit $ 2,000,000 Products/Completed Work Hazard Aggregate Limit $ 2,000,000 Farm Chemicals Limited Liability Aggregate Limit $ 25,000 Custom Farming Annual Receipts $ 5,000 Location of all premises owned, rented, occupied, or controlled by the insured: 10 acres Sec 1, TWP X, RGE Y 25 acres Sec 2, TWP X, RGE Y Loss Cost Classification Code No. Rating Basis Rating Base Prem/Ops All Other Total Premium Crops - Consumption 82415 S 500,000 Personal Liability 82801 FU 1 1-2 Family Owned ATV 82853 U 1 U-Pick - No Off Ground 82241 S 10,000 Bakeries - 81802 S 25,000 Including 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
Polling Question #3 30
Common Policy Conditions CL 0100 Assignment Cancellation Change, Modification, or Waiver of Policy Inspection Included because EB is a trigger Examination of Books and Records 31
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 33
Construction Two base forms Farm Commercial Liability Coverage Form Agribusiness Commercial General Liability Coverage Form 34
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 35
Polling Question #4 36
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 37
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 All Words defined will be in quote marks 38
Principal Liability Coverages Coverage L Bodily Injury Liability and Property Damage Liability Coverage M Medical Payments 39
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 40
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 41
Additional Coverages by End Coverage Y Employee Benefits Liability Claims-Made Basis Employee Benefits Liability Extended Reporting Period 42
Polling Question #5 43
Additional Coverages by End Coverage Z Employment Practices Liability Claims- Made Basis Employment Practices Liability Extended Reporting Period 44
43 Exclusions 45
Endorsements 46
Endorsements See attached AAIS current endorsement list 47
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. 48
MORE Questions or Assistance? Casey Roberts (707) 477-0913 casey@laurusinsuranceconsulting.com