1. Forms
2. FP
3. FP-05-05

What the form is

The FP 05 05 Agritainment – Property Endorsement is designed to be added to a farm insurance policy to provide coverage for direct physical loss or damage to property used in conjunction with 'agritainment' activities. The term 'agritainment' is specifically defined in the endorsement and generally encompasses activities that are agricultural or aquacultural related, operated primarily on the insured location, for the purposes of tourism or entertainment, and engaged in for monetary or other compensation. Standard farm insurance policies often exclude coverage for such commercial activities that go beyond traditional farming operations, making this endorsement necessary for farms diversifying into these areas.

Classes of business it applies to

This endorsement applies to farms or agricultural operations that engage in agritainment activities. Real-world examples include, but are not limited to:

• Pumpkin patches and corn mazes open to the public
• On-farm stores selling farm products and other goods
• Petting zoos or animal exhibit areas
• Hayrides or farm tours for visitors
• Venues for weddings, parties, or corporate events held on the farm
• U-pick operations for fruits, vegetables, or Christmas trees
• Farm-based bed and breakfasts or guest stays (property aspects)

Special considerations

The FP 05 05 is a scheduled endorsement, meaning the specific agritainment property to be covered, the applicable limits of insurance, and the covered causes of loss must be detailed in the endorsement's schedule. This allows for flexibility in tailoring the coverage to the specific agritainment exposures of the insured farm. Key considerations include:

• Definition of 'Agritainment': It's crucial to ensure the insured's activities fall within the endorsement's definition of 'agritainment'.
• Scheduled Property: Only property listed in the schedule is covered. This can include buildings, structures, machinery, equipment, and other personal property used in the agritainment operation. Limits can apply separately to different categories of property like livestock, machinery/vehicles/equipment, and all other property.
• Leased Property: The endorsement may cover leased property if there is a contractual obligation for the insured to provide insurance for it.
• Liability Coverage: This endorsement provides property coverage only. A separate endorsement, typically FL 05 01 Agritainment – Liability, is needed to address the liability exposures associated with agritainment activities.
• Food Contamination: Some versions of the endorsement may offer options regarding coverage for food contamination.
• Theft from Rented Portions: There might be an option to include coverage for theft of agritainment property from parts of an insured location that are rented to others.
• Loss Valuation: The basis of loss settlement (e.g., Actual Cash Value or Replacement Cost) will be specified in the endorsement.

Key information for agents and underwriters

For Agents:

• Thoroughly discuss with farm clients any activities that might be considered 'agritainment' to ensure they are not facing a coverage gap under their standard farm policy.
• Explain the need for both property (FP 05 05) and liability (FL 05 01) endorsements if agritainment activities are present.
• Carefully complete the schedule with accurate descriptions of the property, activities, and desired limits.

• Carefully evaluate the nature and scale of the agritainment operations. This includes understanding the types of activities, number of visitors, seasonality, and specific property used.
• Assess the unique risks associated with the scheduled agritainment property. For example, specialized equipment or structures might have different risk profiles than standard farm property.
• Ensure the premium adequately reflects the increased exposure from public access and commercial activities.
• Verify that appropriate safety measures and risk management practices are in place for the agritainment activities.
• Confirm that the limits of insurance requested are appropriate for the values at risk.