AAIS FARMOWNERS PROGRAM: GL-84–CARE PROVIDED FOR OTHERS

(October 2023)

INTRODUCTION

This endorsement provides coverage for a business operation that cares for others on the insured premises. It can be added to policies that provide personal or farm personal liability coverage. GL-84’s coverage is subject to an Annual Aggregate Limit.

SCHEDULE

The business or activity operated at the applicable insured’s premises must be described along with the number of persons who receive care.

There are two options to enter the Annual Aggregate Limit. It can be a new amount, or it can be the limit for Coverage L entered on the Declarations.

COVERAGE

The endorsement extends liability coverage by adding item d. under Incidental Coverage 7. It states that business activities described in the schedule are covered.

It also extends Medical Expense coverage to apply to business activities but only those described on the schedule.

The exception created by using this endorsement adds coverage to activities that are essentially aligned with the basic purpose of a homeowner's policy. Caring for others involves activities common to most residences. The significant feature in this endorsement is that it allows the policy to respond to losses that involve serving third parties that pay an insured for their use of the insured residence for a number of activities. These include it being a shelter against the elements, a place to eat meals, sleep, engage in light recreation, and as a place of leisure, laundering, preparing meals, sanitation, and similar services. The liability coverage protects an insured against the financial consequences that may arise out of all of the following:

• An injury to a person placed in the insured’s care
• Injuries to relatives or other persons who visit the insured’s clients

Example: Eddie and Rena own and run a farm. However, Rena also cares for her invalid aunt, using a specially furnished bedroom. Rena’s brother pays Rena for the care out of a trust established for the aunt. They tell their insurance agent about the situation, and he immediately suggests they amend their policy and add GL-84. Several months later, they have a claim from a cousin who is injured in a serious fall while visiting her aunt.

· Damage or loss to clients’ personal property or belongings

EXCLUSIONS

In addition to the exclusions in the Personal Liability Coverage, this endorsement adds the following exclusions:

There is no coverage for any bodily injury or property damage that results from or arises out of any of the following:

• Corporal punishment, physical or mental abuse, regardless of who inflicts it or upon whom it is inflicted.
• Draft or saddle animals and any vehicle used with those animals, aircraft, motor vehicles, recreational motor vehicles, or watercraft. This exclusion applies if an insured or employee owns, operates, or hires the animals, vehicles, or watercraft. It also applies if the insured uses any of these for instruction.

Example: Molly cares for a neighbor’s developmentally disabled son. The boy is fascinated by horses, so she decides to help him learn to ride. She carefully chooses her calmest mare and is dismayed when the mare bolts with him on her back. The injuries the boy sustains are not covered.

• It also does not pay for bodily injury to an insured’s employee when the injury is related to the business that this endorsement covers. This exclusion does not apply to domestic employees of the insured or those who perform such duties.

The policy adds an Annual Aggregate Limit and a condition that explains it. The aggregate limit scheduled is the most this endorsement pays in a single policy year for bodily injury, property damage, and medical payments.