1. Forms
2. FB
3. FB-DS-01

Farm Umbrella Liability Policy Declarations (FB DS 01)

The Farm Umbrella Liability Policy Declarations (Form FB DS 01) is a crucial document that outlines the specific details of a farm's umbrella liability insurance coverage. It serves as a personalized summary of the policy, providing the "who, what, when, and how much" of the coverage. This form is used in conjunction with the main Farm Umbrella Liability Policy form (FB 00 01) to create the complete insurance contract.

Classes of Business It Applies To

This declarations page is specifically for farm and ranch operations. It applies to various types of agricultural businesses, including, but not limited to:

• Family Farms and Ranches: Individual or family-owned operations engaged in traditional farming like crop cultivation and livestock raising.
• Farm Partnerships and Family Corporations: Farms structured as partnerships or family-held corporations.
• Agritourism Operations: Farms that have diversified to include activities like public U-pick operations, farm tours, or other on-site entertainment, provided these activities are properly disclosed and underwritten.
• Farms with Incidental Business Pursuits: Operations that may have small, related businesses on the premises, such as a small-scale seed sales operation.

Real-world example: A dairy farm that also hosts school tours and sells cheese made on-site would utilize this declarations page to outline the specifics of their umbrella liability coverage, which would sit above their primary farm liability and commercial auto policies.

Special Considerations

Several important factors must be considered when utilizing the FB DS 01:

• Underlying Coverage Requirements: A farm umbrella policy, and therefore its declarations page, requires the insured to maintain specific types and limits of underlying insurance (e.g., farm liability, commercial auto, employer's liability). The declarations page will typically list these required underlying policies and their limits. Failure to maintain the required underlying insurance can jeopardize coverage under the umbrella policy.
• "Follow Form" Basis: In many instances, the farm umbrella policy will "follow form," meaning it adopts the terms and conditions of the underlying policies, unless otherwise stated in the umbrella policy itself. However, it can also provide broader coverage or fill gaps not covered by the primary policies, subject to a self-insured retention (deductible).
• Disclosure of All Operations: It's critical that all farming operations and incidental business activities are fully disclosed to the insurer. Failure to disclose certain activities, such as custom farming for others or specific agritourism events, could lead to coverage gaps. For example, if a farm starts offering hayrides to the public but doesn't inform their insurer, a claim arising from that activity might not be covered under the umbrella policy if it's not listed or endorsed.
• Named Insureds: The declarations page must accurately list all named insureds, as this dictates who is covered under the policy. This is especially important for farms with complex ownership structures like partnerships or corporations.
• Policy Period: The policy period, including the effective and expiration dates, will be clearly stated on the declarations. Coverage only applies to occurrences or offenses that happen during this period.

Key Information for Agents and Underwriters

Agents and underwriters should pay close attention to the following when working with the FB DS 01 and the associated Farm Umbrella Liability Policy:

• Accurate Limits and Premiums: The declarations page will specify the limits of liability for the umbrella coverage (e.g., per occurrence, aggregate limits) and the premium charged. It's vital to ensure these accurately reflect the insured's needs and the insurer's intent.
• Risk Assessment: A thorough risk assessment of the farm operation is essential. This includes evaluating the types of farming activities, any agritourism or incidental businesses, the number of employees, vehicle usage (especially large farm trucks), and any unique exposures like livestock escaping or product liability. For instance, a farm with a large fleet of vehicles or one that frequently hosts public events presents a higher liability risk and may require higher umbrella limits and more stringent underwriting.
• Underlying Policy Review: Underwriters must carefully review the declarations pages of all underlying policies to confirm that they meet the insurer's requirements for the umbrella policy. Any discrepancies or gaps in underlying coverage must be addressed.
• Endorsements: The FB DS 01 will list all endorsements attached to the policy. These endorsements can modify coverage, add exclusions, or include additional insureds. Agents and underwriters need to understand the impact of each endorsement. For example, an endorsement might be needed to cover liability arising from custom farming operations performed for others.
• Pricing Factors: Pricing for farm umbrella policies can be influenced by various factors including the limits of liability, the nature and scale of the farming operation, claims history, the limits of underlying insurance, and any high-risk exposures (e.g., swimming pools, trampolines, agritourism activities with significant public interaction).
• Potential Coverage Gaps: Be aware of potential gaps, such as pollution liability (which often requires specific endorsements or a separate policy), or liability for activities not typically considered part of farming operations unless specifically endorsed. The definition of "agritainment" and how it's covered is a key area to review.

The FB DS 01 is a critical component in ensuring that a farm has the appropriate excess liability protection. It provides a snapshot of the coverage provided by the Farm Umbrella Liability Policy (FB 00 01) and highlights the specific details agreed upon by the insured and the insurer.