1. Forms
2. FL
3. FL-00-20

What the Form Is

The FL 00 20 Farm Liability Coverage Form is a standard insurance policy document developed by ISO (Insurance Services Office) designed to provide liability coverage specifically for farm and ranch operations. It addresses the unique blend of personal and business exposures that farmers face. The form typically includes three core coverages:

• Coverage H – Bodily Injury and Property Damage Liability: Covers sums the insured becomes legally obligated to pay as damages because of bodily injury or property damage to which the insurance applies.
• Coverage I – Personal and Advertising Injury Liability: Covers sums the insured becomes legally obligated to pay as damages because of personal and advertising injury (e.g., libel, slander, invasion of privacy, copyright infringement in advertising).
• Coverage J – Medical Payments: Covers medical expenses for others incurred as a result of bodily injury caused by an accident on the insured's premises or arising from their operations, regardless of fault.

This form can be issued as part of a monoline Farm Liability Policy or combined with other farm coverage forms in a multi-line package policy.

Classes of Business It Applies To

The FL 00 20 is intended for a wide range of agricultural and aquacultural enterprises. Examples include:

• Traditional crop farms (e.g., corn, soybeans, wheat, fruits, vegetables).
• Livestock operations (e.g., cattle, dairy, hogs, sheep, goats).
• Poultry farms (e.g., chickens, turkeys for eggs or meat).
• Aquaculture operations (e.g., fish farms).
• Operations that include incidental roadside stands on the farm premises for selling farm products principally produced by the insured.

However, certain types of farm-related businesses may be ineligible or require significant modification to the policy. These can include farms owned or controlled by food manufacturers primarily to supply their own processing operations, or farms whose main purpose is large-scale processing or manufacturing for sale to others (like commercial creameries, dairies, or food freezing/dehydrating plants directly tied to the farm's output).

Special Considerations

• Definition of "Farming": Coverage is closely tied to the policy's definition of "farming." Activities falling outside this definition (e.g., certain retail activities beyond basic farm stands, mechanized processing not typically part of farming, or other non-farm businesses) may not be covered without specific endorsements.
• Agritainment: Activities such as corn mazes, petting zoos, farm tours, or other entertainment/tourism operations on the farm (often called "agritainment") are generally not covered under the standard FL 00 20 definition of "farming" and typically require specific endorsements or a separate policy.
• Pollution Liability: The base FL 00 20 provides very limited pollution coverage. Endorsements like FL 01 63 (Amendatory Endorsement) or FL 04 30 (Limited Farm Pollution Liability Extension) are often necessary to provide a degree of coverage for pollution incidents common to farming, such as pesticide or herbicide drift, or animal waste runoff. Often, one of these endorsements is mandatory.
• Custom Farming: If the insured performs farming operations for others for a fee (custom farming), the standard form may limit coverage based on the revenue generated from such activities. Endorsements like FL 04 69 (Custom Farming Liability Coverage) are needed if custom farming receipts exceed the policy threshold.
• Relationship to CGL: While comprehensive for many farm risks, the FL 00 20 has limitations. For farms with significant commercial exposures, complex operations, or activities not fitting neatly into the "farming" definition, a Commercial General Liability (CGL) policy might be considered in addition to, or sometimes in place of, the FL 00 20, or specific endorsements will be crucial.
• Exclusions: The form contains various exclusions, including for expected or intended injury, contractual liability (unless specifically assumed under an "insured contract"), use of aircraft, most motor vehicles (though there are exceptions for certain farm mobile equipment), and business pursuits other than "farming" as defined.

Key Information for Agents and Underwriters

• Thoroughly Understand Operations: Accurately assess all of the insured's activities. Distinguish between defined "farming" operations, "custom farming," "agritainment," and any other on-premises or off-premises business pursuits. This is critical for identifying coverage gaps.
• Address Exclusions and Limitations: Clearly explain key exclusions to the insured, particularly those related to pollution, agritainment, and non-farm business activities.
• Utilize Endorsements: Be familiar with available endorsements to tailor coverage. This includes pollution endorsements, custom farming endorsements, and any needed for specific agritainment activities or other business exposures.
• Define "Insured Location": Ensure all premises where farming operations occur or liability could arise are properly identified and covered.
• Risk Assessment: Evaluate exposures related to pesticide/herbicide application, animal handling, farm machinery operation, public access to the farm (if any), and product liability for farm goods sold.
• Compare with CGL: For larger or more diversified operations, an analysis comparing the FL 00 20 (with endorsements) to a CGL policy may be warranted to determine the most appropriate coverage structure.
• Stay Updated: Edition dates of forms and endorsements matter, as definitions and coverages can change over time. Ensure use of current and appropriate versions.