1. Forms
2. FP
3. FP-04-56

What the form is

The FP 04 56, Collision Resulting in Death of Livestock endorsement, is an Insurance Services Office (ISO) form used in farm insurance policies. Its primary purpose is to alter the coverage provided under the Farm Property – Farm Personal Property Coverage Form (FP 00 13) for covered livestock. Specifically, this endorsement restricts the covered causes of loss for scheduled livestock to only collision, meaning other perils that might have been covered under the broader FP 00 13 are excluded for livestock when this endorsement is active for that livestock. Coverage applies if livestock die as a result of: (1) collision or overturn of a vehicle on which the livestock are being transported; or (2) livestock running into or being struck by a vehicle while they are crossing, moving along, or standing in a public road.

Classes of business it applies to

This endorsement is specifically designed for agricultural businesses that own livestock and want to insure them against the particular risk of death by collision. This includes:

• Cattle ranches
• Dairy farms
• Hog farms
• Sheep farms
• Farms with horses (not used for racing or show, typically)
• Any farming operation where livestock is transported by vehicle or may be exposed to vehicular traffic on public roads.

Real-world example: A farmer who frequently transports cattle to different pastures or to market via truck and trailer might add this endorsement to cover the risk of livestock dying if the transport vehicle is involved in a collision or overturn. Another example is a farm where livestock have to cross a public road to move between grazing areas, exposing them to the risk of being struck by a vehicle.

Special considerations

• When this endorsement is used, the word "COLLISION" must be entered on the FP DS 11–Advisory Declarations Page B – Schedule of Farm Personal Property – Coverage E for the livestock to which this endorsement applies.
• A specific limit of insurance per animal is typically selected and shown on the endorsement or declarations page.
• This endorsement significantly narrows the scope of coverage for the scheduled livestock to only the defined collision peril. The insured must understand that losses from other causes (e.g., disease, weather, theft, attacks by animals, unless such attack is directly related to a covered collision event) would not be covered for livestock under this endorsement.
• It is crucial that the livestock intended to be covered by this endorsement are clearly scheduled, and the endorsement is properly referenced on the policy declarations.

Key information for agents and underwriters

• Risk Assessment: Underwriters should assess the specific risks related to collision. This includes how frequently livestock are transported, the distances involved, the types of roads used, and the safety measures in place during transport. They should also consider the farm's layout and proximity to public roads if livestock are moved on foot.
• Pricing: Pricing for this endorsement will depend on the limits per animal, the number of animals, the type of livestock, and the assessed risk of collision.
• Coverage Gaps: Agents must clearly explain to the insured that this endorsement provides very specific and limited coverage. If broader perils coverage is desired for livestock, other forms or endorsements would be necessary (e.g., relying on the broader perils of FP 00 13 without this restrictive endorsement, or specific livestock mortality policies).
• Clarity in Declarations: It's vital to ensure the declarations page (FP DS 11) accurately reflects that coverage for the specified livestock is limited to "Collision" when this endorsement is active. This avoids ambiguity at the time of a claim.
• Interaction with FP 00 13: This endorsement modifies FP 00 13. Without this endorsement, livestock covered under FP 00 13 might be subject to broader causes of loss, depending on the policy's terms. FP 04 56 essentially carves out specific livestock and applies only collision coverage to them.