Farmowners: Personal Liability Analysis

Principal Coverages

The coverages described below apply, but only if there is a limit for them on the declarations.

Coverage L–Liability

The insurance company pays all sums an insured is legally liability to pay but only up to its limit. The liability must result from bodily injury or property that a covered occurrence causes. If a suit is presented, the insurance company defends but only if it results from covered bodily injury or property. The insurance company has the sole discretion to investigate and settle claims or suits. It is not required to consult with the named insured. The insurance company is not required to defend any insured once it has used up the limit of insurance paying judgments and written settlements.

Coverage M–Medical Payments to Others

The insurance company pays medical expenses when an accident occurs that results in bodily injury but only if all of the following apply:

• They are considered necessary
• They have either been incurred or a medical professional has determined they are needed within three years of the bodily injury accident.
• If the accident occurred on the premises, the person had permission to be on those premises.
• If the accident is off premises, the bodily injury must be due to one or more of the following:
• Conditions at the insured premises
• An insured’s activity
• A domestic employee’s activity
• An animal an insured cares for or owns
• Injury to a domestic employee which performing duties as a domestic employee

Incidental Coverages

Incidental Coverages are subject to all the terms of Coverage L–Liability and Coverage M–Medical Payments to Others.

1. Damage to Property of Others

This coverage applies regardless of an insured’s legal liability. A $500 limit per occurrence applies when an insured damages property of others. The insurance company has the option to pay for the damage, repair it, or replace it with similar property. Coverage does not apply to any property:

• That an insured owns
• That a resident of the household owns, rents, or leases
• That a tenant of an insured owns, rents, or leases
• When an insured intentionally causes the damage but only if the insured is 13 years of age or older
• When any of the following in any way causes the damage:
• An insured’s business activities
• An insured‘s premises that this coverage form does not insure
• Motorized vehicles, aircraft, or watercraft. The only exception is for damage to non-owned unregistered motorized vehicles used to service the premises or used for off-road recreation.