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Ag Liability Programs (AgGL and AgXL)

Agricultural Commercial Umbrella and Excess Liability Program (AgXL)

AAIS’s latest agricultural product innovation is a standardized umbrella/excess liability program designed for farming, agribusiness, or ag-related commercial operations.

Although designed to be used with the AAIS AgGL Program, the AgXL forms are flexible enough to be used with other farm and agricultural insurance programs.

This program provides three base forms :

  • The Agricultural Commercial Excess Liability Form provides excess coverage over underlying policies (including personal liability), plus a separate products/completed work aggregate.
  • The Farm Commercial Umbrella Form provides umbrella coverage over more traditional farm liability-type policy.
  • The Agribusiness Commercial Umbrella Form, provides umbrella coverage over a a broader commercial liability-type policy.

These forms provide structured alternatives for writing umbrella and excess  liability coverage over any underlying auto, farm, agribusiness, commercial, or other policy.

Personal liability coverage and a separate products/completed work aggregate can be added by endorsement to each umbrella form.

The AgXL program includes nearly 100 endorsements for tailoring policies to each risk. These include multiple pollution options, designated vehicle and driver exclusions, and the ability to provide claims-made excess coverage over claims-made employment practices liability or employee benefits liability coverage endorsements.

The program’s sample manual provides a sample rating procedure and instructions on how to construct policies.

Agricultural General Liability Program (AgGL)

The AgGL is the first standardized general liability program designed for agricultural operations, and it is rapidly growing in use.

It features two base forms, each of which can be written on a stand-alone basis or combined in a package policy with any other farm property, inland marine, or commercial property form:

The Farm Commercial Liability Form limits coverage to farming and related operations, but allows coverage for other exposures by endorsement or dec page entry.

The Agribusiness Commercial General Liability Form provides coverage for all operations of an insured except those explicitly excluded.

Along this line, “custom farming” is specifically defined and insured under the farm commercial form, up to an annual threshold of receipts.

Custom farming is a covered activity unless explicitly excluded under the agribusiness CGL form (although care, custody, and control exclusion may need to be removed by endorsement).

Limited coverage for chemical drift is built into each base form, and personal liability coverage can be added by endorsement.

Each base form also includes a comprehensive set of up-to-date exclusions, and come with numerous optional endorsements for tailoring coverage.

The exclusions include many recently standardized for general liability coverage (mold, silica, unsolicited transmissions, and others) plus several addressing exposures specific to agriculture, including certain logging or lumbering operations, requirements under the Migrant and Seasonal Worker Protection Act, and animal diseases.

More than 150 multistate endorsement options are provided. They address, among other things, employee benefits liability, employment practices liability, chemical drift, aircraft crop dusting, and pollution.

The program manual contains more than 300 agricultural classifications, many of them providing sales-based rating information, plus an optional rule for acreage-based rating for farm classifications, subject to a maximum receipts threshold.

The manual includes a six-step “Commodity Price Stabilization Plan” which provides a method to adjust sales-based rating in farming classes to reflect fluctuations in commodity prices.

The manual also provides an IRPM plan that allows underwriters to apply a credit or debit to the calculated premium based on several risk-related characteristics of an operation.

Insurance companies seeking more information on AAIS products and services can contact Raul Socha, Director of Business Development, by completing our contact form or by calling 800.564.AAIS x3238.

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