1. Forms
2. FP
3. FP-04-20

What the Form Is

The FP 04 20 Foreign Objects In Machinery endorsement is designed to provide coverage for loss or damage to insured farm machinery that occurs when a foreign object is taken into the machine. Standard farm property policies, such as the FP 00 30 Mobile Agricultural Machinery and Equipment Coverage Form and those using the FP 10 60 Causes of Loss form, typically exclude this type of damage. This endorsement specifically removes that exclusion for the machinery scheduled and for which this coverage is indicated in the Declarations.

Classes of Business It Applies To

This endorsement is crucial for agricultural businesses that rely heavily on machinery for their operations. Examples include:

• Farms utilizing combines for harvesting grain (e.g., rocks, metal debris, or wood being ingested during harvesting).
• Operations using forage harvesters or balers where foreign materials from the field can be accidentally picked up.
• Any farm or ranch that uses machinery in fields where debris or foreign objects might be present and could be ingested by the equipment.

Special Considerations

• This endorsement typically must be purchased in conjunction with Special Causes of Loss coverage for the machinery.
• The coverage applies only to those specific items of farm machinery that are listed in the policy Declarations as having this coverage.
• It's important to clearly identify which machinery units are to be covered by this endorsement to avoid gaps in coverage.
• The definition of a "foreign object" is key; it generally refers to an object that is not part of the machinery itself and is accidentally ingested.

Key Information for Agents and Underwriters

Agents:

• Should proactively discuss this endorsement with farm clients, especially those with high-value machinery or those operating in conditions where foreign object ingestion is a known risk (e.g., rocky fields, custom harvesting in unfamiliar terrain).
• Explain the limitations, such as the requirement to schedule the covered machinery and potentially the prerequisite of Special Causes of Loss.
• Help clients assess the value of their machinery and the potential cost of damage from foreign objects to determine if the coverage is worthwhile.

Underwriters:

• When evaluating risk, consider the type of farming operation, the specific machinery to be covered, the typical field conditions, and the insured's maintenance and operational practices.
• Pricing should reflect the increased exposure to loss from this specific peril.
• Review loss history for any patterns of foreign object damage.
• Ensure that the schedule of machinery to which this endorsement applies is clear and unambiguous.