Handout: Insurance & Liability Concerns for Your Open Farm
Special Farm Package 1CT
exclusive coverage for the
farm and ranch community
We understand that a standard one-size-fits-all policy simply
doesn't fit. Your business istinique, and your insurance
coverage should be, too.
Farm Family's Special Farm Package® (SFP 10®) goes beyond
traditional farm or ranch coverage, providing a flexible farm
package. It allows you to customize a program more precisely,
to match your individual needs. Depending on the coverages
desired, you can customize a program by choosing among five
divisions, and a variety of options within those divisions. SFP 10®
combines similar perils (causes of loss, such as windstorm, fire,
theft, etc.) into groups, to achieve the combination of coverages
that are right for you.
Tailored protection helps ensure you're getting exactly what
you want — and that you're not paying extra for coverages
you don't want.
We understand that your home and business concerns
are often one and the same. Farm Family's SFP 10® policy
combines personal, farm, business property and liability
coverages all under one policy, to simplify your insurance
protection. Plus, the cost of having one policy may save
We understand that farm and ranch operations of varying size
and scope, from the largest nurseries to the smallest wineries,
have very different needs. We serve the more common types
of farming throughout the Northeast (dairy, horse, beef,
poultry, produce), along with the more unusual (ostriches,
llamas, aquaculture operations).
We understand the farming community — it's the cornerstone
of our company. Farm Family was founded by farmers, for
farmers. We were one of the first insurance companies to
issue a flexible policy specifically for agribusiness, with the
introduction of the SFP 10® policy in 1980.
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Residences and Household Contents
Covers: Dwellings; Mobile homes; Loss of use; Household contents; Debris removal;
Trees, shrubs, plants, lawns; Fences; Refrigerated products; Outdoor radio, satellite and
TV equipment; Motorized vehicles; Computer hardware and software; Credit card theft;
Increased cost of ordinance or law; Fire department service; and more.
Options available: Replacement cost on residence and contents; Inflation guard;
Builders risk; Excess business property contents; Earthquake; and more.
Buildings and Building Contents
Covers; Barns; Silos; Sheds; Potato houses; Poultry houses; Greenhouses; Poultry; Controlled
atmosphere storage; Permanent equipment in buildings; Refrigerated products; and more.
Options available: Replacement cost on buildings and contents; Consequential loss; Tenant
improvements and betterments; Operations records; Extra expense; Builder's risk; Suffocation
or smothering of poultry; Growing crops in greenhouses; Increased loss of refrigerated products;
Ordinance or law; Farming income loss; Dairy income loss; Equipment breakdown; and more.
Farm Personal Property
Covers: Livestock; Farm machinery; Farm products, supplies and tools; Borrowed farm
machinery; Limited pollutant clean-up and removal; Property in the custody of common
or contract carrier; and more.
Options available: Farm machinery used for hire; Rental reimbursement; Property Average
Coverage; Excess property away from premises; Special silo unloader coverage; Borrowed
or rented farm machinery; Periodic increase in limits; and more.
cheduled Personal Property*
overs: All-risk coverage for valuables that you choose to insure.
Options available: Jewelry; Furs; Coins; Stamps; Fine arts; Silverware; Musical instruments;
Cameras; Golf equipment; Bicycles; Signs; Guns; All-terrain vehicles; Watercraft; Snowmobiles.
Covers: Medical expenses; First aid; Cost of defense; Bodily injury and property damage
liability; Farm chemical transportation coverage; and more.
Options available: Harvest-your-own; Personal injury; Limited custom farming; Fire legal
liability; Farm employee coverage; Livestock boarding; Named insured medical expenses;
Watercraft; Care, custody and control of livestock; Home day care coverage; Employment
practices liability; Employee benefits liability; and more.
*Subject to exclusions
Taking a Personal Interest
By and large, farming is a family endeavor,
rich in tradition. But the way you operate
your business can change considerably from
one generation to the next. New techniques,
shifts in the marketplace, and laws and
regulations are but a few of the many
factors that can impact your daily life.
Some things, however, do remain constant.
Whether you raise cows or beef cattle,
grow produce or cash crops, operate a
horse stable, or manage a greenhouse, you
shouldn't have to worry about whether
you have the correct insurance coverage
to fit your ever-changing needs. That's why
you need an insurance agent who knows
your business...and understands the unique
challenges of it. Farm Family is here to serve
farmers and ranchers and their families.
We honor that commitment with pride.
At Farm Family, we share your tradition in
farming, and we're changing right along
with you. We've been there for you from
the beginning, and we'll be there for you
tomorrow. Our name says it all.
As your business changes,
so do we.
Protecting What You Value Most
The Farm Family group of insurance
companies, headquartered in Glenmont,
New York, is part of the American National
Family of Companies. Farm Family has been
providing insurance protection for families
and businesses in rural and suburban areas
since the mid-1950s. Over the years, Farm
Family has earned a solid reputation, with an
established tradition of trust. We continue to
honor that commitment with pride.
Farm Family agents take a personal interest,
protecting what you value most. We recognize
that personal service is the key to meeting
your individual and business needs. Many of
our agents have agricultural backgrounds,
and some of them even began their
relationship with Farm Family as clients.
We're big enough to meet a wide range of
coverage needs, yet small enough to listen
to your concerns and provide the personal
attention you deserve.
Talk to a local Farm Family agent today,
and find out what we can do for you.
Call 1-800-THE FARM (1-800-843-3276) or
visit our Web site at www.farmfamily.com.
Farms / Ranches / Country Estates / Small Business Owners / Contractors
Commercial General Liability / Homeowners / Commercial and Personal Auto / Umbrella Liability
Life Insurance / Disability Income / Annuities / IRAs
Pyle Agency Inc.
651 Route 22A North
Fair Haven, VT 05743
Phone: 802-265-3439 Ext- 22
This brochure contains only a general description of the coverages and is not a statement
of contract. All coverages are subject to the terms and conditions of the policy itself.
Not all coverages are available in all states.
Property/casualty insurance products offered by Farm Family Casualty Insurance Company,
Glenmont, NY, in CT, DE, MA, ME, NH, NJ, NY, Rl, VT and WV, and United Farm Family
Insurance Company, Glenmont, NY, in MD and PA.
FAMILY OF COMPANIES
Page 1 of 7
FF | SPECIAL FARM PACKAGE FORMS | 07/01/09
WE will provide the insurance described in this policy if YOU have paid the premium and have complied with the
policy provisions. This policy is divided into five (5) Divisions, some with several sections. Within each Division
YOU will find specific coverages, additional coverages, optional coverages, limitations, conditions and exclusions
that apply only to that Division. YOU have only those coverages listed on the coverage selection page, for which a
limit of liability is shown and a premium is paid.
The following terms have the special meanings described below, and when used in the defined manner, the terms
appear in the policy as shown here, in all capitalized letters.
1. ADDITIONAL INSURED means only the individuals or other entities specifically listed on the coverage
selection page and then only as their interests appear.
2. ADVERTISING INJURY means injury (other than BODILY INJURY, PROPERTY DAMAGE or PERSONAL
INJURY) arising out of one or more of the following offenses committed in the course of advertising YOUR
PRODUCTS or services:
a. oral or written publication of material:
1) that slanders or libels a person or organization;
2) that disparages a person's or organization's goods, products or services; or
3) that violates a person's right of privacy;
b. misappropriation of another's advertising ideas or style of doing business; or
c. infringement upon another's copyright, title, slogan, trademark or trade name.
3. BODILY INJURY means bodily harm, sickness, disease, or death to a person resulting from any of these. This
also includes required care and loss of services.
4. BUILDING means a private garage or structure used in YOUR covered BUSINESS or FARMING operations for
other than RESIDENCE purposes.
5. BUSINESS means a trade, profession or occupation other than FARMING.
6. BUSINESS EMPLOYEE means any individual employed by an INSURED whose duties are in connection with
the INSURED's BUSINESS pursuits, but only while acting within the scope of their duties related to the conduct
of the INSURED's BUSINESS. BUSINESS EMPLOYEE includes a LEASED EMPLOYEE and a TEMPORARY
EMPLOYEE. BUSINESS EMPLOYEE does not include a FARM EMPLOYEE or DOMESTIC EMPLOYEE.
7. BUSINESS LIABILITY means an obligation of the INSURED for BODILY INJURY, PROPERTY DAMAGE,
MEDICAL EXPENSES, PERSONAL INJURY or ADVERTISING INJURY caused by a BUSINESS
OCCURRENCE or an offense for which the INSURED is legally liable. The term BUSINESS LIABILITY does
not include FARM LIABILITY or PERSONAL LIABILITY.
8. BUSINESS PROPERTY means that part of the property on which a BUSINESS is conducted.
9. COVERAGE TERRITORY means:
a. The United States of America (including its territories and possessions), Puerto Rico and Canada;
b. International waters or airspace, but only if the injury or damage occurs in the course of travel or
transportation between any places included in a. above; or
c. All other parts of the world if the injury or damage arises out of:
1) goods or PRODUCTS made or sold by YOU in the territory described in a. above;
2) the activities of a person whose home is in the territory described in a. above, but is away for a short
time on YOUR BUSINESS or involved in work activities related to YOUR farm; or
3) PERSONAL INJURY and ADVERTISING INJURY offenses that take place through the Internet or
similar electronic means of communication;
provided the INSURED's responsibility to pay damages is determined in a SUIT
on the merits, in the territory described in a. above or in a settlement WE
With respect to coverage provided under PERSONAL LIABILITY, the definition
of COVERAGE TERRITORY does not apply.
10. COVERED CONTRACT means:
a. a lease of a premises. However, a COVERED CONTRACT does not include that part of any contract or
agreement for a lease of a premises that indemnifies any person or organization for damage by fire, smoke
or explosion to premises rented or loaned to an INSURED;
b. a railroad sidetrack agreement;
c. an elevator maintenance agreement;
d. a promise to indemnify a municipality if required by an ordinance (this does not apply in connection with
work done for the municipality);
e. an easement or license agreement (this does not include an agreement in connection with any construction
or demolition operation within fifty (50) feet of a railroad);or
f. that part of any other written contract or agreement pertaining to YOUR covered FARMING or BUSINESS
operations under which YOU assume the tort liability of another party to pay for BODILY INJURY or
PROPERTY DAMAGE to a third person or organization. Tort liability means a liability that would be
imposed by law in the absence of any contract or agreement. This paragraph, f., does not apply to any
contract or agreement:
1) that indemnifies a railroad for BODILY INJURY or PROPERTY DAMAGE arising out of construction or
demolition operations, within fifty (50) feet of any railroad property and affecting any railroad bridge or
trestle, tracks, road-beds, tunnel, underpass or crossing;
2) that indemnifies an architect, engineer or surveyor for injury or damage arising out of:
a) preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions, reports,
surveys, field orders, change orders or drawings and specifications; or
b) giving directions or instructions, or failing to give them, if that is the primary cause of the injury or
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3) under which the INSURED, if an architect, engineer or surveyor, assumes liability for injury or damage
arising out of the INSURED's rendering or failure to render professional services, including those listed
in 2) above and supervisory, inspection, architectural or engineering activities.
11. CROP DAMAGE means the amount of diminished value for plants or animals grown or reared extensively for
profit or subsistence.
12. DOMESTIC EMPLOYEE means a person employed by an INSURED to perform duties that relate to the use,
care and/or maintenance of the INSURED's RESIDENCE PREMISES, but only while acting within the scope of
employment. This includes a person who performs duties of a similar nature elsewhere for an INSURED. This
does not include a FARM EMPLOYEE or a BUSINESS EMPLOYEE.
13. ELECTRONIC DATA means information, facts or programs stored as or on, created or used on, or transmitted
to or from computer software, including systems and application software, hard or floppy discs, CD ROMS,
tapes, drives, cells, data processing devices or any other media which are used with electronically controlled
14. EMPLOYEE includes FARM EMPLOYEE(s), DOMESTIC EMPLOYEE(s) and BUSINESS EMPLOYEE(s).
15. FARM EMPLOYEE means a person employed by the INSURED whose duties are in connection with the
maintenance or use of the farm PREMISES or FARM PERSONAL PROPERTY, while acting within the scope
of employment. The FARM EMPLOYEE may be employed for wages, by barter, by an exchange labor
agreement or in any other way. This does not include a DOMESTIC EMPLOYEE or BUSINESS EMPLOYEE.
A FARM EMPLOYEE includes a LEASED EMPLOYEE and a TEMPORARY EMPLOYEE.
16. FARM LIABILITY means an obligation of the INSURED for BODILY INJURY, PROPERTY DAMAGE,
MEDICAL EXPENSES, PERSONAL INJURY or ADVERTISING INJURY caused by a FARMING
OCCURRENCE or an offense for which the INSURED is legally liable. The term FARM LIABILITY does not
include BUSINESS LIABILITY or PERSONAL LIABILITY.
17. FARM MACHINERY means any motorized land vehicle, including its equipment, implements or farm wagons,
whether attached or not, usual to the operation of YOUR farm, used exclusively for FARMING purposes and
designed for use principally off public roads. FARM MACHINERY also includes spare parts and accessories to
be used with FARM MACHINERY. FARM MACHINERY includes a MOTOR VEHICLE which, under the laws
of the state in which it is principally garaged, does not need to be registered and is not so registered. The term
FARM MACHINERY does not include:
a. snowmobiles or all-terrain vehicles whether or not used for FARMING purposes;
b. irrigation piping, sprinkler heads and fittings;
c. silo unloaders; or
d. FARM PRODUCTS, SUPPLIES AND TOOLS.
18. FARM PERSONAL PROPERTY means LIVESTOCK, FARM MACHINERY or FARM PRODUCTS, SUPPLIES
19. FARM PRODUCTS, SUPPLIES AND TOOLS means the following:
a. FARM PRODUCTS means those items raised or produced in YOUR FARMING operation for sale or
distribution to others;
b. FARM SUPPLIES means those items obtained or produced and subsequently consumed in the normal
operation of YOUR farm such as, but not limited to, pallets, boxes, fertilizer, hay, feed, oil or fuels; and
c. FARM TOOLS means those instruments, utensils and apparatus usual to the operation of YOUR farm such
as, but not limited to, hammers, shovels, saws, wheelbarrows, irrigation piping, irrigation sprinkler heads,
irrigation fittings, and like equipment and their parts and accessories, whether hand or power driven.
The term FARM PRODUCTS, SUPPLIES AND TOOLS does not include FARM MACHINERY or LIVESTOCK,
20. FARMING means:
a. the production and marketing of fruit, vegetable, nut or field crops, flowers, sod, nursery or greenhouse
b. the raising or keeping of:
1) LIVESTOCK owned or leased by YOU. FARMING does not include commercial feed lots or stockyards
or boarding operations. FARMING does include the temporary or incidental keeping or harboring of
LIVESTOCK owned by others, but only if there is no exchange of compensation or barter for same;
3) fur bearing animals; or
21. GROWING SEASON means the start of soil preparation during any one year for the harvesting of one or more
crops through the post-preparation at the end of the year.
22. IMPAIRED PROPERTY means tangible property, other than YOUR PRODUCT or YOUR WORK, that cannot
be used or is less useful because:
a. it incorporates YOUR PRODUCT or YOUR WORK that is known or thought to be defective, deficient,
inadequate or dangerous; or
b. YOU have failed to fulfill the terms of a contract or agreement;
if such property can be restored to use by:
a. the repair, replacement, adjustment or removal of YOUR PRODUCT or YOUR WORK; or
b. YOUR fulfilling the terms of the contract or agreement.
a. If the named INSURED on the coverage selection page is an individual, then INSURED means YOU, the
named individual, EMPLOYEES while acting within the scope of their employment for YOU, and the
following individuals who reside in a RESIDENCE where the named INSURED who is listed on the
coverage selection page resides:
1) YOUR spouse;
2) relatives of YOU or YOUR spouse; and
3) persons under age twenty-one (21) in YOUR care or in the care of YOUR resident relatives.
b. If the named INSURED on the coverage selection page is a partnership or joint venture, then INSURED
1) YOU, the named partnership or joint venture;
2) EMPLOYEES of the partnership or joint venture while acting within the scope of their employment; and
3) any partner or member of that partnership or joint venture, but only with respect to his liability as a
Page 3 of 7
partner or member. He is not an INSURED with respect to his PERSONAL LIABILITY unless PERSONAL
LIABILITY is specifically purchased on an individually named basis.
c. If the named INSURED on the coverage selection page is other than an individual, partnership or joint
venture, then INSURED means:
1) YOU, the named entity; and
2) any executive officer, manager, director, member, stockholder or EMPLOYEE of that entity. However,
he is an INSURED only with respect to the scope of his duties as an executive officer, manager,
director, member, stockholder or EMPLOYEE of that entity. He is not an INSURED with respect to his
PERSONAL LIABILITY unless PERSONAL LIABILITY is specifically purchased on an individually
With respect to 23a., b. and c. above, if PERSONAL LIABILITY has been specifically purchased on an
individually named basis, then INSURED means YOU, the named individual on the Schedule of Liability,
and the following individuals that reside in a RESIDENCE where the named INSURED who is listed on the
Schedule of Liability resides:
1) YOUR spouse;
2) relatives of YOU or YOUR spouse; and
3) persons under age twenty-one (21) in YOUR care or in the care of YOUR resident relatives.
d. If the named INSURED on the coverage selection page is a trust, then INSURED means YOU, the named
trust. YOUR trustees are also INSUREDS, but only with respect to their duties as trustees.
e. If a named INSURED dies while insured under this policy, his protection passes to his legal representative
or other person having proper, temporary custody of covered property. However, his legal representative
or other person is an INSURED only with respect to insurance on covered property and legal liability arising
out of the property. Any person who is an INSURED at the time of a named INSURED's death continues to
bean INSURED while residing on the insured PREMISES.
f. Each of the following is also an INSURED:
1) VOLUNTEER WORKERS are INSUREDS, but only while performing duties related to the conduct of
YOUR covered BUSINESS or FARMING operations and only for acts within their service to YOU.
BUSINESS LIABILITY or FARM LIABILITY coverage must be listed in the Schedule of Liability for this
policy in order for this paragraph, f.1), to apply.
2) Any person or organization, except YOUR EMPLOYEES or VOLUNTEER WORKERS, while acting as
YOUR real estate manager.
3) A newly formed or acquired organization that is not a partnership, joint venture or limited liability
company and over which YOU maintain ownership or a majority interest qualifies as an INSURED if
there is no other similar insurance available to that organization. However:
a) coverage is provided only until:
i) a period ending ninety (90) days after YOU acquire or form the organization; or
ii) the end of the policy period,
whichever is earlier; and
b) coverage does not apply to BODILY INJURY, PROPERTY DAMAGE, PERSONAL INJURY and
ADVERTISING INJURY that occurred before YOU acquired or formed the organization.
No person or organization is an INSURED with respect to the conduct of any current or past
partnership, joint venture, or limited liability company that is not listed as a named INSURED in the
coverage selection page or the Insured Name Schedule of this policy.
LEASED EMPLOYEE means a person leased to YOU by another individual or entity under a written
agreement between YOU and that individual or entity, to perform duties related to the conduct of YOU R
BUSINESS or FARMING operation. LEASED EMPLOYEE does not include a TEMPORARY EMPLOYEE.
LIMITED CUSTOM FARMING means the use by an INSURED of any FARM PERSONAL PROPERTY in any
FARMING activities for others for a fee. This coverage does not apply to activities involving the sale, storage,
distribution and/or application of chemical or organic pesticides, herbicides, fungicides, defoliants or fertilizers.
LIVESTOCK means cattle, sheep, swine, goats, horses, mules and donkeys. The term LIVESTOCK does not
include any animal after it has been slaughtered.
LOADING or UNLOADING means the handling of property:
a. as soon as it is moved from the place where it is accepted for movement into or onto an aircraft, watercraft,
or MOTOR VEHICLE;
b. during the time it is in or on an aircraft, watercraft or MOTOR VEHICLE; or
c. while it is being moved from an aircraft, watercraft or MOTOR VEHICLE to the place where it is finally
but LOADING or UNLOADING does not include the movement of property by means of a mechanical device,
other than a hand truck, that is not attached to the aircraft, watercraft or MOTOR VEHICLE.
MEDICAL EXPENSES means reasonable and necessary expenses for medical, surgical, X-ray, dental,
ambulance, hospital, professional nursing and funeral services, prosthetic devices and eyeglasses including
MOTOR VEHICLE means a motorized land vehicle, motorized bicycle, trailer or semi-trailer designed for travel
on public roads and subject to registration. Farm tractors requiring an automobile policy shall be deemed
MOTOR VEHICLES under this provision. The term MOTOR VEHICLE does not include the following unless
they are towed or carried on a MOTOR VEHICLE:
a. utility, boat, camping or travel trailers;
b. FARM MACHINERY;
c. RECREATIONAL MOTOR VEHICLES; or
d. any other equipment or vehicle designed principally for use off public roads and not licensed for road use.
OCCURRENCE means an accident, including continuous or repeated exposure to conditions, that results in
BODILY INJURY or PROPERTY DAMAGE. All BODILY INJURY and PROPERTY DAMAGE resulting from a
common cause shall be considered the result of one OCCURRENCE.
PERSONAL INJURY means injury (other than BODILY INJURY, PROPERTY DAMAGE or ADVERTISING
INJURY) arising out of one or more of the following offenses:
a. oral or written publication of material:
1) that slanders or libels a person or organization;
2) that disparages a person's or organization's goods, products or services; or
3) that violates a person's right of privacy;
Page 4 of 7
b. false arrest, detention or imprisonment;
c. malicious prosecution; or
d. wrongful entry into, wrongful eviction from, or invasion of the right of private occupancy of a room, dwelling,
or premises that a person occupies. This offense must be committed by or on behalf of the owner, landlord
or lessor of the room, dwelling or premises. The actual, alleged or threatened discharge, seepage,
migration, release or escape of POLLUTANTS into or upon land, water or air does not constitute an
invasion of the right of private occupancy.
PERSONAL LIABILITY means an individual's obligation for BODILY INJURY, PROPERTY DAMAGE,
MEDICAL EXPENSES, PERSONAL INJURY or ADVERTISING INJURY caused by an OCCURRENCE or an
offense for which the INSURED is legally liable. The term PERSONAL LIABILITY does not include BUSINESS
LIABILITY or FARM LIABILITY.
POLLUTANT means any solid, liquid, gaseous, thermal or radioactive irritant or contaminant, including acids,
alkalis, chemicals, fumes, smoke, soot, vapor, excrement of humans, animals or birds and waste. Waste
includes materials to be recycled, reclaimed, reconditioned or disposed of. The term POLLUTANT also means
electrical or magnetic emissions, whether visible or invisible, and sound emissions.
PREMISES means the locations designated on the Schedule, including RESIDENCES, BUILDINGS and their
private approaches, cemetery plots and burial vaults. Under Division V, PREMISES also includes the following
(which do not have to be designated on the Schedule):
a. that part of a premises not owned by YOU if it is temporarily used as a residence by YOU; and
b. all farm locations YOU own, rent, occupy or operate.
PRODUCTS means goods or products manufactured, sold, handled, distributed or disposed of by the
INSURED. PRODUCTS include:
a. warranties or representations made at any time with respect to the fitness, quality, durability or performance
b. containers (other than vehicles), materials, parts or equipment furnished in connection with PRODUCTS;
c. providing or failing to provide warnings or instructions.
PRODUCTS does not include vending machines or other property that is rented to or placed for the use of
others, but not sold, nor real property.
PRODUCTS/COMPLETED OPERATIONS HAZARD
a. PRODUCTS HAZARD means BODILY INJURY or PROPERTY DAMAGE arising out of PRODUCTS after
physical possession has been relinquished to others.
b. COMPLETED OPERATIONS HAZARD means BODILY INJURY or PROPERTY DAMAGE arising out of
YOUR WORK. It does not include work that has not been completed, or that has not been abandoned.
YOUR WORK is deemed completed at the earliest of the following times:
1) when all work specified in YOUR contract has been done;
2) when all work to be done at a jobsite has been completed if YOUR contract includes work at more than
one site; or
3) when YOU R work at a jobsite has been put to its intended use, by someone other than another
contractor or subcontractor, working on the same jobsite.
Work which may require further service, maintenance, correction, repair or replacement because of a
defect or deficiency, but is otherwise complete, shall be deemed completed.
c. Neither PRODUCTS HAZARD nor COMPLETED OPERATIONS HAZARD include BODILY INJURY or
PROPERTY DAMAGE arising out of:
1) transportation of property, unless the injury or damage arises out of a condition in or on a vehicle,
created by LOADING or UNLOADING;
2) the presence of tools, uninstalled equipment, or abandoned or unused materials; or
3) PRODUCTS or work for which the classification on the Schedule of Liability specifies "including
PRODUCTS/COMPLETED OPERATIONS HAZARD".
PROPERTY DAMAGE means physical injury to or destruction of tangible property, including the loss of use of
tangible property whether physically damaged or not. Loss of use will be deemed to have occurred at the time
of the OCCURENCE that caused it.
For the purpose of this insurance, ELECTRONIC DATA will not be considered tangible property.
RECREATIONAL MOTOR VEHICLE means any motorized vehicle designed for recreation, principally used
off public roads, and whether licensed for road use or not.
RESIDENCE means a one- to four-family dwelling or a one-family mobilehome, but does not include any part
used for BUSINESS purposes.
RESIDENCE PREMISES means a one- to four-family dwelling or a one-family mobilehome and its grounds.
SUIT means a civil proceeding, including alternative dispute resolution or arbitration, to which the INSURED
must submit or does submit with OUR consent, alleging damages involving BODILY INJURY, PROPERTY
DAMAGE, PERSONAL INJURY or ADVERTISING INJURY to which this insurance applies.
TEMPORARY EMPLOYEE means a person furnished to YOU as a substitute for a permanent EMPLOYEE on
leave or to meet seasonal or short-term workload conditions. TEMPORARY EMPLOYEE does not include a
DOMESTIC EMPLOYEE or a LEASED EMPLOYEE.
VOLUNTEER WORKER means a person who is not YOUR EMPLOYEE and who donates his or her work,
acts at the direction of and within the scope of duties determined by YOU, and is not paid a fee, salary, or
provided any other compensation or service by YOU or anyone else for the work performed for YOU.
WE, US and OUR refer to the Company providing this insurance.
YOU, YOUR and YOURSELF means the person, partnership, corporation, estate, trust or other organization
named as the INSU RED on the coverage selection page.
YOUR WORK means:
a. work or operations performed by YOU or on YOUR behalf;
b. materials, parts and equipment furnished for such work or operations.
YOUR WORK includes;
a. written warranties or representations made at any time regarding quality, fitness, durability, or performance
or use of YOUR WORK; and
b. providing or failing to provide warnings or instructions.
Page 5 of 7
1. Policy Period. This policy applies only to loss which occurs during the policy period that is stated on the
coverage selection page. Any payment of dividend or other credit will not extend or change the policy period.
2. Concealment, Misrepresentation or Fraud. This entire policy is void as to YOU and any other INSURED if,
whether before or after a loss:
a. YOU or any other INSURED have intentionally concealed or misrepresented any material fact or
circumstance concerning this insurance; or
b. there has been fraud or false swearing by YOU or any other INSURED as to any matter that relates to this
insurance or the subject thereof.
In the event of either a. or b. above, WE will not pay YOU or any other INSURED for any loss.
3. Inspection and Audit. WE are permitted, but not obligated, to inspect YOUR PREMISES, property and
operations and to examine and audit YOUR books and records at anytime during the policy period and within
three (3) years after the termination of this policy. OU R inspection or any resulting report does not certify that
YOUR properties or operations are safe or healthful or are in compliance with any law, rule or regulation.
4. Cancellation. A) By first named INSURED -the first named INSURED may cancel this policy at any time by
returning it to US or OUR agent or by notifying US or OUR agent in writing the date cancellation is to take
effect. B) By US -WE may cancel this policy by notifying the first named INSURED in writing of the effective
date of cancellation. This notice of cancellation must be mailed to the first named INSURED at the first named
INSURED's last known mailing address and proof of mailing is sufficient proof of notice. WE may cancel only
under the following conditions:
a. nonpayment of premium - if the premium has not been paid when due, WE may cancel at any time by
giving the required notice at least ten (10) days before the cancellation is effective.
b. new policy - if this is a new policy that has been in effect less than sixty (60) days, and is not a renewal, WE
may cancel for any reason by giving the required notice at least thirty (30) days before the cancellation is
c. all other situations - if this policy has been in effect sixty (60) days or more or is a renewal of a policy issued
by US, WE may cancel only for the following reasons and then by giving the required notice at least thirty
(30) days before cancellation is effective:
1) if there has been a material misrepresentation or omission of facts which if known to US would have
caused US not to issue the policy; or
2) if there has been a substantial change in the risk since the policy was issued.
Payment of the unearned premium is not a condition of cancellation. If the return premium is not refunded with
the notice of cancellation, it will be sent to the first named INSURED within a reasonable time.
All cancellations are on a pro-rata basis.
The effective date of cancellation is the earliest of the following:
1) the effective date and hour stated in any cancellation notice;
2) when the first named INSURED surrenders the policy; or
3) the effective date of any replacement policy.
5. Nonrenewal. WE may elect not to renew or continue this policy by giving written notice of OUR intent at least
forty-five (45) days before the expiration date or anniversary. This notice of nonrenewal must be mailed to the
first named INSURED at the first named INSURED's last known mailing address and proof of mailing is
sufficient proof of notice. This policy terminates automatically on its expiration or anniversary date if the first
named INSURED has notified US or OUR agent in writing prior to the expiration date of YOUR intent not to
a. If the INSURED has rights to recover all or part of any payment WE have made under this policy, those
rights are transferred to US. At OUR request, the INSURED will bring SUIT or assign those rights to US
and help US enforce them. If any assignment is sought, an INSURED shall sign and deliver all related
papers and cooperate with US in a reasonable manner.
b. WE are not liable for the lessor may seek reimbursement of any payments made if the INSURED does
anything after the loss to impair OUR right of recovery.
c. If WE pay a loss to or on behalf of an INSURED and the INSURED recovers damages from another person
for the same loss, the INSURED must hold the amount recovered in trust for US and reimburse US as
provided under Recoveries.
7. Recoveries. If WE pay an INSURED for loss under this policy and lost or damaged property is recovered, or
payment is made by those responsible for the loss, the following provisions apply:
a. the INSURED must notify US or WE will notify the INSURED promptly if either recovers property or
b. any proper expenses incurred by either party in making the recovery are reimbursed first;
c. the INSURED may keep recovered property by refunding to US the amount of the claim paid or any lesser
amount to which WE agree; or
d. if the claim paid is less than the agreed loss due to a deductible, special limit of liability or other limiting
terms of this policy, any recovery will be pro-rated between the INSURED and US based on OUR
respective interests in the loss.
8. Liberalization. If WE adopt any revision which would broaden the coverage under this policy without additional
premium, within forty-five (45) days prior to or during the policy period, the broadened coverage will
immediately be interpreted to apply to this policy.
9. Transfer. This policy can not be transferred to any person or organization without OUR written consent. If a
named INSURED dies while insured under this policy, his protection passes to his legal representative or other
person having proper, temporary custody of covered property. However, his legal representative or other
person is covered only with respect to insurance on covered property and legal liability arising out of the
10. Policy Changes. This policy contains all the agreements between YOU and US. Any changes must be in
writing to be valid. If YOU request a change that requires a premium adjustment, WE will adjust the premium
as of the date of the change.
Page 6 of 7
11. Non-Concurrency. If more than one coverage under this policy applies to any loss, WE will pay no more than
the actual loss. In the event that a loss to an item is covered by two or more sections of this policy, and those
sections provide both blanket and specific insurance for the item, the limit of liability for specific insurance shall
be exhausted first and any remaining loss to the item shall be paid from the blanket insurance. If deductibles
apply, the lowest amount will be applied once to the entire loss.
12. Conformity with Statute. Terms of this policy, in conflict with the statutes of the state where the PREMISES
described on the Schedule are located, are amended to conform to such statutes.
13. Clarification. Whenever the context so requires, the plural includes the singular, the singular the plural, and
the masculine the feminine.
14. Increase in Hazard. Unless otherwise provided in writing, WE will not be liable for loss occurring while the
hazard is increased by any means within the control or knowledge of the INSURED.
15. Premiums. The first named INSURED is responsible for the payment of premiums and will be the payee for
any return premiums WE pay.
WE do not cover loss resulting directly or indirectly from one or more of the following exclusions, regardless of any
other causes or events contributing concurrently or in any sequence to the loss:
1. Ordinance or Law, meaning loss or increased cost resulting from enforcement of any code, ordinance or law
regulating the use, construction, repairer demolition of a RESIDENCE, BUILDING or other structure. When
breakage of glass is covered, WE will pay to replace damaged glass with safety glazing materials where
required by code, ordinance or law.
2. Civil Authority, meaning loss, including seizure, confiscation or destruction of property, caused by order of civil
authority. WE will pay for loss resulting from acts of destruction by civil authority to prevent the spread of fire
as long as the fire did not originate from a peril excluded by this policy.
3. Nuclear Action, meaning nuclear reaction, radiation or radioactive contamination. Loss caused by nuclear
action shall not be considered loss by fire, explosion or smoke. Direct loss by fire resulting from the nuclear
action is covered.
4. War, meaning:
a. declared or undeclared war, civil war;
b. warlike act by a military force or military personnel, including actions taken to hinder or defend against an
actual or expected attack, by any government, sovereign or other authority, using military personnel or
other agents; or
c. insurrection, rebellion, revolution or usurped power or action taken by governmental authority in hindering
or defending against any of these.
5. Intentional Loss, meaning loss that results from an act committed by or at the direction of any INSURED with
the intent to cause loss.
6. Neglect, meaning neglect by an INSURED to use all reasonable means to save and preserve the property at
the time of and after the loss or when the property is in danger of loss.
7. Earth Movement, meaning earthquake, volcanic eruption, landslide, mudflow, earth sinking, rising or shifting,
and all arising from natural causes. WE will pay for direct loss by fire, explosion, breakage of glass and theft (if
covered) resulting from earth movement- WE will also pay for direct loss to LIVESTOCK resulting from
8. Water Damage, meaning:
a. flood, surface water, waves, tidal water, overflow of a body of water or spray from any of these, wind-driven
b. water which backs up through sewers or drains;
c. water below the surface of the ground, including water which exerts pressure on, or seeps or leaks through
or into a RESIDENCE, BUILDING, sidewalk, driveway, foundation, swimming pool or other structures; and
d. water which discharges or overflows from a sump, a sump pump or related equipment.
WE will pay for direct loss by fire, explosion or theft (if covered) resulting from water damage. WE will also pay
for direct loss to LIVESTOCK resulting from flood.
9. Power Interruption, meaning loss from power, heating or cooling system failure resulting from any cause, if
the interruption takes place away from the insured PREMISES. Direct loss by a peril insured against which
occurs on the insured PREMISES as a result of power interruption is covered.
10. Explosion, Rupture or Bursting of steam boilers, steam pipes, steam turbines or steam engines owned by,
leased by or operated under the control of an INSURED. In addition, WE will not cover loss to rotating parts of
machinery caused by centrifugal force.
11. Depreciation, Decay, Quarantine, Deterioration, Change in Temperature or Humidity, Loss of Market, or
from any other consequential or indirect loss of any kind resulting therefrom.
12. Error, Omissions and Defects, which result from one or more of the following:
a. an act, error or omission (negligent or not) relating to:
1) land use;
2) the design, specification, construction, workmanship or installation of property;
3) planning, zoning, development, surveying, siting, grading, compaction; or
4) maintenance of property (including land, structures or improvements);
whether on or off the PREMISES; or
b. a defect, a weakness, the inadequacy, a fault or unsoundness in materials used in construction or repair
whether on or off the PREMISES.
WE do pay for an ensuing loss unless the ensuing loss itself is excluded.
SF 0001 0709
Copyright 1995 Farm Family Casualty Insurance Company