1. Forms
2. FB
3. FB-10-14

What the form is

The FB 10 14 Fungi Or Bacteria Exclusion is an endorsement used with Farm Umbrella Liability policies. Its primary purpose is to eliminate coverage for liability claims arising from bodily injury or property damage caused by or related to fungi or bacteria. This means that losses stemming from issues like mold, mildew, rot, or other bacterial contaminations are generally not covered under the umbrella policy when this endorsement is attached. Some versions of this exclusion may contain an exception, preserving coverage for liability specifically related to food poisoning caused by fungi or bacteria. The introduction of this type of exclusion often includes the term "fungi or bacteria incident" within the policy language.

Classes of business it applies to

This endorsement is specifically designed for agricultural businesses and farming operations that have a Farm Umbrella Liability Policy. Examples include:

• Commercial farms (crop, dairy, livestock, etc.)
• Agritourism businesses with farm umbrella coverage
• Wineries or orchards with associated farm operations and umbrella policies

Essentially, any agricultural entity seeking or having an umbrella liability policy might encounter this exclusion, particularly as insurers became more concerned about mold and bacteria-related claims.

Special considerations

It is crucial to understand that the FB 10 14 is a restrictive endorsement, meaning it reduces or eliminates coverage that might have otherwise existed.

• Scope of Exclusion: The exclusion is typically broad, applying to most forms of fungi and bacteria. Policyholders should carefully review the exact wording to understand the full extent of the exclusion.
• Food Poisoning Exception: If present, the exception for food poisoning is a significant detail. Farms involved in selling produce or other food products directly to consumers should verify if this exception is included.
• Underlying Policies: While this form applies to the Farm Umbrella Liability Policy, it's important to check if similar exclusions exist on the underlying primary liability policies (e.g., Farm Liability Coverage Form). Gaps in primary coverage will not be picked up by an umbrella policy that also has this exclusion.
• State Variations: While often a multi-state form, specific wording or applicability could potentially vary by state or insurer.

For example, if a farm experiences a significant mold outbreak in a tenant dwelling on their property leading to alleged health issues for the tenant, the FB 10 14 on their Farm Umbrella policy would likely preclude coverage for any liability claims related to this mold, subject to the specific terms of the endorsement.

Key information for agents and underwriters

• Agents: Must clearly explain the impact of this exclusion to their farm clients. It's vital that insureds understand they will likely have no umbrella liability coverage for most fungi or bacteria-related incidents. The potential food poisoning exception should also be discussed if applicable. Agents should document this discussion.
• Underwriters: This endorsement helps manage the insurer's exposure to potentially large and widespread claims related to mold and bacteria. When evaluating a farm risk:
• Confirm the presence of this exclusion on umbrella policies, especially for risks with higher potential for moisture or contamination issues (e.g., dairy operations, farms with extensive irrigation, older buildings).
• Assess the risk management practices of the farm concerning moisture control, sanitation, and food handling (if applicable and the food poisoning exception is a concern).
• Be aware of the definition of a "fungi or bacteria incident" as it may impact how aggregate limits or per-incident limits are applied if any limited buy-back coverage for fungi/bacteria exists (though FB 10 14 is generally a full exclusion for the umbrella).
• Pricing: The presence of this exclusion would typically be factored into the overall rating of the Farm Umbrella policy, reflecting the reduced scope of coverage.
• Coverage Gaps: Highlight to the insured that this exclusion creates a significant coverage gap for mold/bacteria claims. While some limited first-party property coverage for fungi might be available via other endorsements (like FP 05 30 or FP 05 31 for property, not liability), this FB 10 14 addresses the liability exposure under the umbrella.