Package Policies

Agribusiness operations are not eligible for most businessowners programs but commercial coverages can be conveniently combined under a commercial package policy.

Commercial Package Policy (CPP)

 

Property Coverages

Larger agribusiness risks should consider writing their insurance coverage under an agricultural output policy due to its flexibility and additional coverages.

Equipment Breakdown Protection may be provided in the agricultural output policy or written separately. The coverage is extremely important because of the extensive use of machinery to control temperatures, monitor feed, milking and many more operations.

Utility services direct damage coverage is an important optional coverage that should be considered because the agribusiness risk depends on an uninterrupted source of power for its continuing operations.

Types of Property

Building

Business Personal Property

Personal Property of Others

Improvements and Betterments

Property Coverage Forms

Agricultural Output Policies

Building and Personal Property Coverage Forms

Builders Risk Coverage

Commercial Output Policies

Equipment Breakdown Protection Coverage (AKA Boiler and Machinery Coverage)

Legal Liability Coverage

Tobacco Sales Warehouse Coverage

Perils Insured/Causes of Loss Forms

Basic

Broad

Special

Earthquake

Flood Coverage

Mine Subsidence

Property Coverage Options to Consider

Debris Removal Coverage

Ordinance or Law Coverage

Outdoor Trees, Shrubs and Plants Coverage

Spoilage Coverage

Utility Services–Direct Damage Coverage

Valuation Options

Manufacturers’ Selling Price

Market Value–Stock

Peak Season Limit of Insurance

Replacement Cost

Value Reporting

Time Element Coverages

Business Income with Extra Expense Coverage

Business Income without Extra Expense Coverage

Extra Expense Coverage

Leasehold Interest Coverage

Time Element Coverage Options to Consider

Business Income from Dependent Properties Coverage

Ordinance or Law Increased Period of Restoration Coverage

Utility Services–Time Element Coverage

Inland Marine Coverages

Animal mortality, transportation and electronic data processing are three vital inland marine coverage needs. Livestock operations have significant exposures to all three because of the potential for significant loss when animals are kept in a single building. Transporting live animals can be very hazardous especially on narrow rural roads. Electronic Data Processing coverage is also extremely important because all agribusiness operations are becoming dependent on it for communication and also for efficiently managing all aspects of the processing.

 

Accounts Receivable Coverage

Contractors’ Equipment Coverage

Difference in Conditions (DIC) Coverage

Electronic Data Processing Equipment Coverage

Mobile Equipment Coverage

Transportation Coverage

Valuable Papers and Records Coverage

 

Crop and Livestock Coverages

Loss of crops or livestock can financially ruin an agribusiness operation. Therefore, special coverages are available specifically to cover these unusual loss exposures. The market is limited because of the unique nature of the exposures, and the specialized knowledge necessary to underwrite and price the risk and to adjust any claims.

 

Bloodstock Insurance

Crop Hail Coverage

Livestock Coverage Form

Livestock Mortality Coverage

Multiple Peril Crop Insurance

Revenue Insurance

Crime Coverages

The primary crime exposure for agribusiness operations is employee theft of inventory. Theft of money and securities exposures may be present if retail and wholesale operations are conducted. Extortion and kidnapping may be a concern with valuable livestock and horses. Internet sales may also create exposures.

 

Computer and Funds Transfer Fraud Coverage

Employee Theft Coverage

Forgery or Alteration Coverage

Inside The Premises–Theft of Money and Securities Coverage

Inside The Premises–Robbery or Safe Burglary of Other Property Coverage

Money Orders and Counterfeit Money Coverage

Outside The Premises Coverage

Crime Coverage Options to Consider

Destruction of Electronic Data or Computer Programs Coverage

Employee Theft and Forgery Policy

Extortion Coverage

Inside The Premises–Robbery or Safe Burglary of Money And Securities Coverage

Inside The Premises–Robbery or Burglary of Other Property Coverage

Inside The Premises–Theft of Other Property Coverage

Kidnap and Ransom Coverag

Lessees of Safe Deposit Boxes Coverage

Securities Deposited With Others Coverage

Telephone Toll Fraud

Unauthorized Reproduction of Computer Software by Employees Coverage

Surety Coverages

Agribusiness operations having contracts to supply products to government entities are required to provide a contract-performance of service or supply bond. Other bonds may be required, depending on the actual operations performed or services provided.

 

Contract–Performance of Service or Supply Bonds

License and Permit Bonds

Commercial Liability Coverages

Tainted products are the biggest general liability concern for most agribusiness, but with the surge of agritourism, premises injury concerns are increasing. Some large operations have a railroad spur on their premises, which adds an exposure that can only be covered with a railroad protective policy.

 

Commercial General Liability (CGL) Coverage

Employee Benefits Liability Coverage

Employment-Related Practices Coverage

Product Recall or Product Withdrawal Expense Coverage

Product Tampering Insurance

Products Liability Retroactive Coverage

Railroad Protective Liability Coverage

Special Events Liability Coverage

Commercial Auto Coverages

The agribusiness automobile exposure varies dramatically based on the particular type of operation. Those with livestock will have considerable more exposure than those that are grain. It is important to evaluate the drivers for experience in training in the particular transport because transporting live animals can be extremely difficult especially on rural narrow and winding roads.

 

Auto Medical Payments

Business Auto Coverage

Collision Coverage

Comprehensive Coverage

Hired Cars

Nonownership Automobile Coverage

Uninsured/Underinsured Motorists Coverage

Workers Compensation Coverages

Most employers are required by state statute to provide coverage through a workers compensation policy for on-the-job injuries sustained by their employees. However, some agricultural workers are exempt from coverage so a voluntary compensation coverage endorsement should be attached to the policy in order to avoid coverage gaps. Farm workers have some of the highest rates of work-related injury, so coverage should be as broad as possible.

Workers Compensation and Employers Liability Coverage

Stop-Gap or Employers Liability Coverage

Voluntary Compensation Coverage

Excess and Umbrella Coverages

Tainted food products can injure great numbers of people throughout a city, state, region or nation. Because the dollar impact of the damages can be catastrophic, additional excess or umbrella limits of insurance are needed. If coverage is written on a claims-made underlying policy, retroactive excess liability coverage should be considered.

 

Excess Liability Coverage

Retroactive Excess Liability Coverage

Umbrella Coverage

Ocean Marine Coverages

Ocean marine cargo coverage should be considered for goods shipped overseas. Since the policy has war risk exclusions for certain geographical areas, the status of countries purchasing the goods should be reviewed and war risk coverage considered, if available.

 

Ocean Marine Cargo Coverage

Ocean Cargo War Risk Coverage

Specialty Coverages

Loss exposures to agribusiness operations are different, depending on the types of operations conducted, the nature of the customers and the countries where the products are sold. The coverages provided by the following policies may be particularly helpful to certain customers. Environment impairment and pollution-related items are of particular concern with the increased emphasis of waste disposal and ground water contamination.

 

Property and Casualty Coverages

American Expatriate Coverage

Business Legal Expense Coverage

Commercial Credit Coverage

Cyberliability Coverage

Directors and Officers Liability Coverage

Environmental Impairment Liability Coverage

Export Credit Insurance Coverage

Fiduciaries Liability (Pension, Welfare And Employee Benefit Funds) Coverage

Identity Theft Insurance Coverage

International Insurance Coverage

Patent Infringement Liability Coverage

Risk Retention Group Liability Coverage

Solar Energy System Coverage

Tax Liability Coverage

Tender Offer Defense Expenses Coverage

Underground Storage Tank (UST) Liability Coverage

Weather Coverage

Life and Health Coverages

 

Affordable Care Act Coverage (ACA)

Athletic Team Accident Coverage

Group Health Insurance

Group Life Insurance

Individual Health Insurance

Key Person Life Insurance

Legal Expense Insurance

Partnerships Coverage

Supplemental Medical Expense Insurance

Travel Accident Insurance