INTRODUCTION

The American Association of Insurance Services (AAIS) Agricultural Output Program is similar to the AAIS Commercial Output Program. However, the specific coverage part and each endorsement are intended to respond to the unique characteristics and coverage requirements of today’s agribusiness operation.

AG 0100–Agribusiness Property and Income Coverage Part is the Agricultural Output Program’s primary coverage form. It covers buildings, buildings under construction, computers, mobile equipment, personal property, specifically scheduled property, and stock.

It also covers earnings and extra expense. It has nine additional coverages, nine extensions of coverage, and 19 supplemental coverages. It also offers four income extensions, two income additional coverages, and five income supplemental coverages.

The AG 0100 also contains the conditions, definitions, and other elements that make it a complete coverage form.

ELIGIBILITY

This Program’s eligibility requirements are both quite specific and quite broad.

Related Article: AAIS Agricultural Output Program Eligibility

DECLARATIONS

The AAIS Agricultural Output Program does not have a specific declarations page. AAIS provides two suggested advisory declarations. Each is extensive and complicated because of the number of coverages offered and the flexibility to assign limits. Each insurance company usually designs and develops its own declarations.

Related Article: AAIS Agribusiness Declarations

POLICY CONSTRUCTION

The AAIS Agribusiness Property and Income Coverage Part can be issued as a separate monoline policy or as part of a package policy. These forms are mandatory in either case:

· Agribusiness Common Policy Declarations

Related Article: AAIS Agribusiness Declarations

· Agribusiness Property Coverage Declarations

Related Article: AAIS Agribusiness Common Policy Declarations

· AG 0100–Agribusiness Property and Income Coverage Part

· CL 100–Common Policy Conditions

· Mandatory state endorsements based on individual state exceptions

AVAILABLE ENDORSEMENTS

The AAIS Agribusiness Property and Income Coverage Part provides extremely broad and comprehensive coverage. As a result, it has only a limited number of endorsements available to use with it.

UNDERWRITING

Underwriting the Agribusiness Property and Income Coverage Part requires a combination of skills. Commercial underwriting skills are needed for manufacturing, processing, and retail operations. Farm underwriting skills are needed for farm-related operations and exposures.

RATING

Rating the Agribusiness Property and Income Coverage Part is similar to rating the Commercial Output Policy. This process relies heavily on the underwriter’s expertise, as well as a thorough and accurately completed application.