1. Forms
2. FL
3. FL-05-01

What the form is

The FL 05 01 Agritainment – Liability endorsement is an optional addition to a Farm Liability Coverage Form (like the ISO FL 00 20). Its primary purpose is to provide liability coverage for specific "agritainment" activities that are scheduled on the endorsement. Standard farm liability policies often exclude or do not adequately cover exposures arising from such activities. "Agritainment" is generally defined within the form as an agricultural or aquacultural related activity or enterprise that is primarily operated on the "insured location" for the purposes of tourism or entertainment and is engaged in for monetary or other compensation.

Classes of business it applies to

This endorsement is designed for farm or ranch operations that have diversified their activities beyond traditional farming and engage in public-facing entertainment or tourism ventures. Real-world examples include:

• Pumpkin patches and corn mazes
• U-pick fruit or vegetable operations
• On-farm markets selling farm products and other items
• Petting zoos or animal exhibits
• Hayrides or farm tours for visitors
• Hosting events like weddings, festivals, or farm-to-table dinners
• Farm stays or bed & breakfast type accommodations on the farm

Special considerations

• Scheduled Operations: Coverage only applies to the specific agritainment activities listed in the endorsement's schedule. It's crucial to accurately and comprehensively list all such operations.
• Liquor Liability: The endorsement typically adds a liquor liability exclusion. However, the schedule may provide an option to waive this exclusion for specific activities, though this would require careful underwriting.
• Modification of Exclusions: The schedule may allow for the deletion or modification of certain standard exclusions in the base policy as they apply to the agritainment operations. For example, it might allow for the deletion of the mobile equipment exclusion for farm wagons used to transport visitors or the livestock and animals exclusion for rides provided to visitors.
• Products Liability for Consumables: The endorsement may contain specific limitations or exclusions related to bodily injury arising from products intended for bodily consumption (e.g., food sold at a farm stand) particularly after the product has been relinquished. This could necessitate separate products liability coverage.
• Definition Changes: The FL 05 01 often revises certain definitions within the base Farm Liability Coverage Form, such as "advertisement" or "insured location," to ensure they appropriately apply to the covered agritainment activities.
• Policyholder Notice: While the form itself is filed with state insurance departments, related policyholder notices about agritainment may have different state availability.

Key information for agents and underwriters

• Risk Assessment: Underwriters must carefully assess the unique liability exposures presented by each scheduled agritainment activity. This includes considering the nature of the activity, public access, safety measures in place, supervision, and historical loss experience.
• Pricing: This endorsement allows insurers to specifically price the agritainment exposure, which is typically not contemplated in standard farm liability rates.
• Coverage Gaps: Agents should discuss potential coverage gaps with insureds. For instance, the standard ISO Farm Program does not have a corresponding agritainment endorsement for Farm Umbrella policies, which could leave a significant gap for large liability claims. A separate Commercial General Liability (CGL) policy might be considered for more complex or extensive agritainment operations, or if the insurer is unwilling to provide coverage for all activities under the farm policy.
• Interaction with Other Coverage: It's important to understand how this endorsement interacts with other coverages the insured may have, such as a CGL or special events policies.
• Medical Payments: The endorsement typically modifies the Medical Payments coverage to apply to injuries sustained by members of the public arising from the scheduled agritainment activities.
• Clear Communication: Agents should clearly explain to the insured what activities are covered, any specific limitations or exclusions within the endorsement, and the importance of notifying the insurer if new agritainment activities are started.