What it does
FL 04 69 extends bodily injury and property damage liability and medical payments to "custom farming" operations the insured performs. With FL 00 20 it removes the custom farming exclusion and a related exclusion for the coverage it provides. It can also attach to the CGL form. Premium is based on custom farming receipts by type of work.
Who needs it
Farmers who plant, spray, harvest, bale or haul for neighbors for pay. FL 00 20 excludes custom farming once receipts exceed $5,000 in the prior 12 months.
Quoting and selling notes
Ask for annual custom farming receipts by type of work, the equipment used and whether chemicals are applied. Pair with machinery coverage that follows equipment off the farm (FP 00 30). Wording reviewed: 09 03 edition.
How it fits the farm liability policy
A farm liability endorsement changes only the coverages it names (Coverage H bodily injury and property damage, Coverage I personal and advertising injury, Coverage J medical payments, or a coverage it adds). The rest of FL 00 20, including the definitions of "farming", "custom farming" and "insured location", continues to apply. When presenting a quote, list each farm liability endorsement and its schedule entries so the insured sees how the base form was broadened or narrowed.
