AG 0100–AGRIBUSINESS PROPERTY AND INCOME COVERAGE PART AVAILABLE ENDORSEMENTS AND THEIR USES

(February 2025)

INTRODUCTION

This list identifies endorsements available to modify the American Association of Insurance Services (AAIS) Agribusiness Property and Income Coverage Part. It is arranged by form number and title, briefly describing and explaining how each endorsement is used. It does not include state-specific endorsements, changes, or amendments.

FORM NUMBERING

The ten-digit numbering sequence of AAIS forms and endorsements has a very specific meaning:

· The first two entries are alphabetical characters indicating the line of insurance involved, such as AG for Agribusiness Property and Income Coverage Part.

· The next four digits are the form or endorsement number.

· The last four digits are the edition date of the form or endorsement expressed in month and year format. These digits are not used in this analysis.

AAIS AGRIBUSINESS PROPERTY AND INCOME COVERAGE PART ENDORSEMENTS

AG 0124–Computer Virus and Hacking Coverage

This endorsement covers direct physical loss or damage to covered computers and/or loss of income caused by a virus or hacker. For this coverage to be applicable, the policy declarations must specify a limit of insurance for either property and/or income coverage in the space provided. The form states that coverage should list both occurrence and aggregate limits. Additionally, if property is included, a deductible will be shown. If income coverage is desired, a waiting period expressed in hours will be specified.

AG 0128–Crime Coverages–Discovery Basis

This endorsement is optional, and seven crime coverage options are available.

The declarations must specify a limit to indicate the chosen coverage options. A separate limit and rating procedure apply to each coverage option.

Related Article: AG 0128–AAIS Agribusiness Crime Coverages

AG 0130–Equipment Breakdown Coverage

This optional endorsement covers equipment for direct physical loss or damage caused by an accident.

Related Article: AG 0130–Equipment Breakdown Coverage

AG 0131–Equipment Breakdown Declarations

This declaration page is used with AG 0130–Equipment Breakdown Coverage to enter limits, coinsurance, deductibles, and other provisions that apply to the coverage AG 0130 provides. Some carriers may place this information on the coverage declarations instead of utilizing this separate declaration page.

AG 0132–Functional Replacement Cost

This endorsement replaces the actual cash value or replacement cost valuation in the coverage form with functional replacement cost valuation. It permits the insured to replace the property with property functionally the same as the damaged property instead of requiring the replaced property to be of like kind and quality. Some coverage is provided for demolishing the undamaged property.

Related Article: Functional Property Valuations

AG 0135–Exclusion–War and Military Action

This is a broader and more comprehensive mandatory endorsement that replaces the war exclusion in AG 0100 and applies to the entire policy.

AG 0136–Hay, Straw, and Fodder Coverage

AG 0100 excludes hay, straw, and fodder. This endorsement adds coverage for this property. The only covered perils are fire, lightning, windstorm, hail, vehicles, vandalism, and theft. It has an unusual condition that requires at least 100 feet of clear space between structures that contain this property. The same spacing is required between stacks, ricks, piles, and pits of this property.

AG 0140–Livestock Coverage

Since AG 0100 excludes livestock, this endorsement adds coverage on a named perils basis. It must be described on the declarations for coverage to apply.

Related Article: AG 0140–Livestock Coverage

AG 0144–Mortgaged and Stolen Grain Coverage

This unusual coverage reimburses an insured who purchases grain from a source that doesn’t have full rights to the grain. The grain may be stolen or encumbered by a lien or mortgage. The endorsement pays the monetary loss the insured suffers when the rightful owners claim their property and the insured is left with no grain and no money. Of course, coverage applies only if the insured was unaware that the source did not have full rights to the grain.

AG 0148–Optional Exclusions

This endorsement is used to exclude one or more of the following coverages: Collapse, Consequential Water Loss, Sprinkler Leakage, Theft, Vandalism, Water Damage, or Windstorm or Hail. The exclusion is activated by entering the peril excluded on the declarations for the specific type of property. This endorsement explains exactly how the added exclusion applies.

Note: In the Optional Exclusions section of the coverage declarations, there is no option to select Collapse or Consequential Water Loss. We are unsure whether this is an oversight or intentional.

AG 0149–Water Damage Amendments

This mandatory endorsement replaces the Water exclusion in AG 0100. An explanation of this exclusion is part of the AG 0100–Agribusiness Property and Income Coverage Part Analysis.

Note: This exclusion seems to be an attempt to clarify AG 0100’s coverage intent or may be a significant reduction in coverage.

Related Article: CP 10 32–Water Exclusion Endorsement - This Insurance Services Office (ISO) endorsement is similar to this AAIS endorsement, so the article provides background and examples of possible effects.

AG 0152–Poultry Coverage

AG 0100 excludes poultry. This endorsement adds coverage for this property on a named perils basis.

Related Article: AG 0152–Poultry Coverage

AG 0156–Pro Rata Limit

This endorsement is used to prevent intentional underinsurance within a blanket schedule. The value of the property where the loss occurred is divided by the value of all property subject to the pro rata limit. This ratio is then applied to the pro-rata limit. The calculated limit is the most available to pay for the loss.

Example: Mildred’s Mayhem Farms has 20 buildings on a blanket schedule with a $1,500,000 limit. One building is destroyed. At the time of loss, the actual value of all covered property is $2,000,000 and the value of the damaged building is $50,000. $50,000 divided by $2,000,000 = .025. $1,500,000 X .025 = $37,500. Only $37,500 is available to pay for the loss.

AG 0160–Property in Transit–Condemnation or Seizure Coverage

This endorsement extends the coverage provided in Supplemental Coverages 8. Property in Transit to include loss caused by a civil authority seizing condemned beans or grain because of insect infestation, animal or bird excrement or filth, or pesticide/insecticide chemical contamination.

AG 0164–Protective Devices and Services

This endorsement is a warranty that applies to only the location for which an entry on the declaration is made for protective devices and services. Fire and/or theft losses are excluded when the named insured knowingly allows the protective device or service at that location to lapse or does not maintain the device or service in proper working order.

AG 0168–Rebuilding Coverage–Excess Insurance Amendment

This optional endorsement replaces “Insurance Under More Than One Policy” and “Loss Settlement Terms” but only for the items entered under Rebuilding Coverage on the Declarations. Coverage is provided on an ACV basis and only in excess of a primary policy. The property must be rebuilt on the same site, for the same use, and within 18 months.

AG 0172–Scheduled Earthquake Coverage

This endorsement covers loss or damage due to earthquake and volcanic eruption.

Related Article: AG 0172–Scheduled Earthquake Coverage

AG 0173–Earthquake Schedule

This schedule is used with AG 0172–Scheduled Earthquake Coverage. It lists the Covered Locations, Covered Property, if the building is Masonry Veneer, Earthquake Deductibles, and Limits that apply.

AG 0176–Scheduled Flood Coverage

This endorsement covers loss or damage due to flood.

Related Article: AG 0177–Scheduled Flood Coverage

AG 0177–Flood Schedule

This schedule is used with AG 0176–Scheduled Flood Coverage. It lists the Covered Locations, Covered Property, Flood Deductibles, and Limits. Flood deductibles are expressed as either a dollar amount or as a percentage.

AG 0180–Theft Coverage–Amended Limit

This endorsement must be attached if an amended theft limit is listed on the declarations. This allows the named insured to carry a lower theft limit for the property scheduled on the endorsement.

AG 0184–Waiver of Deductible–Commodities

This endorsement is used if a federal or state regulatory authority requires the named insured provide full coverage on commodities it holds under a written storage agreement for the account of others.

An important aspect of this endorsement is that the insured agrees in writing to reimburse the insurance company for the deductible paid to accounts of others. The insured's signature is required. The deductible is waived only for the account of others and not for the named insured.

AG 0188–Warehouse Operators–Legal Liability Coverage

This endorsement covers the named insured’s legal liability for property of others it stores in its warehouse.

AG 0189–Warehouse Operators Schedule

This schedule is used with AG 0188–Warehouse Operators Legal Liability Coverage. It lists the Covered Locations, Covered Warehouse Descriptions, Limits for Dry and Cold Storage, Earned Warehouse Charges Limits, Catastrophe Limits, and Deductible Amounts.

AG 0192–Windstorm or Hail Deductible

This endorsement replaces “How Much We Pay, 2. Deductible”—located in AG 0100.

Related Article: —but only for windstorm and hail.

There are four different types of percentage deductibles. Entries on the declarations identify the affected property and the percentage deductible.

AG 0640–Limited Fungus and Related Perils Coverage

This is actually a fungus and related perils exclusion. A small amount of coverage is granted but even that small amount is on a 12-month aggregate basis.

AG 0645–Underground Pipes, Pilings, Bridges, and Roadways

As listed on AG 0100, —Property Not Covered, item 23 —Underground Pipes, Flues, and Drains is expanded to exclude pilings, piers, wharves, docks, retaining walls, bridges, roadways, walkways, and other paved surfaces.

However, this endorsement also adds a new supplemental coverage that includes all the above not covered property for whatever limit is listed on the declarations.

AG 0650–Virus or Bacteria Exclusion

This mandatory exclusion is added to AG 0100. Because it is mandatory, an analysis of this exclusion is part of the AG 0100–Agribusiness Property and Income Coverage Part Analysis, located under Perils Excluded — 1. Primary Exclusion.

CL 0100–Common Policy Conditions

This endorsement adds the Common Policy Conditions to AG 0100. The conditions are the following:

· Assignment

· Cancellation

· Change, Modification or Waiver of Policy Terms

· Inspections

· Examination of Books and Records

CL 0342–Equipment Breakdown Reinstatement

Under AG 0130, coverage can be immediately suspended if the inspector believes the item is unsafe. This endorsement is used by the company to reinstate the item after it has been repaired.

CL 0345–Joint or Disputed Loss Agreement

When a property is covered by two different insurance policies—one providing coverage for direct physical damage and the other being a separate policy for equipment breakdown or boiler and machinery—disputes often arise regarding which policy applies. This occurs even when both insurance carriers agree that coverage is in effect. This optional endorsement clarifies the payment responsibilities of each carrier, ensuring that the insured is fully compensated. The specifics can be settled later between the parties involved.

CL 0600–Certified Terrorism Loss

This endorsement adds coverage for Certified Acts of Terrorism, as defined by the U.S. Secretary of the Treasury in consultation with the Secretary of Homeland Security and the Attorney General. It specifies what qualifies as an act of terrorism. Adding this endorsement supersedes and modifies any existing terms that exclude terrorism, amending the coverage to include certified terrorism losses.

For coverage to be applicable, the insurer must meet its deductible, and the total amount of terrorism losses must exceed $100 billion within a calendar year. The Secretary of the Treasury determines whether the certified acts of terrorism have surpassed this required limit.

This endorsement does not change the terms of any provided coverage part for any loss that would have been excluded with or without any other terrorism endorsement, including those losses that address war, military action, and nuclear hazard.

CL 0610–Certified Act of Terrorism Exclusion

This endorsement excludes any loss or damage caused directly or indirectly by Certified Acts of Terrorism, regardless of any contributing cause or event.

CL 0620–Certified Act of Terrorism Exclusion (With Limited Exception)

This endorsement is identical to the above CL 0610 but includes damage caused by fire following a loss resulting from a Certified Act of Terrorism. It does not include coverage for loss of earnings, extra expense, or fire legal liability.

CL 1630–Conditional Terrorism Exclusion

This endorsement is used to exclude terrorism losses if the federal Terrorism Risk Insurance Program (TRIP) terminates. If TRIP is terminated before the policy's effective date, the endorsement will take effect on that date.

CL 1650–Conditional Nuclear, Biological, and Chemical Terrorism Exclusion

This endorsement is used to exclude terrorism coverage and adds an exclusion caused by nuclear, biological, and chemical terrorism losses if the federal Terrorism Risk Insurance Program (TRIP) terminates. If TRIP is terminated before the policy's effective date, the endorsement will take effect on that date.

CL 2630–Terrorism Exclusion

This optional endorsement excludes terrorism coverage that is not required to be certified by the US Government.

Note: Section 2.e. specifies a damage threshold in excess of $25,000,000 to assess the severity of an incident and determine whether the terrorism exclusion applies. If the incident is classified as terrorism, then there will be no coverage provided.

CL 2650–Nuclear, Biological, and Chemical Terrorism Exclusion

This endorsement is identical to CL 2630 – Terrorism Exclusion, except for the removal of section part 2.e.