What it does
FP 01 60 applies to all property coverage in the Farm Coverage Part, including buildings, personal property, livestock, mobile agricultural machinery, and income, extra expense, fair rental value, additional living expense and civil authority coverage. It excludes loss caused by or resulting from any virus, bacterium or other microorganism that induces or can induce physical distress, illness or disease, and it supersedes the pollutant exclusions for such losses.
Who needs it
Carriers attach it to farm policies to keep disease and contamination losses out of property coverage. For livestock operations the practical effect is that animal disease outbreaks are not a property loss.
Quoting and selling notes
Explain that herd disease, quarantine and contamination losses are not covered; specialty livestock mortality or disease programs may be available. FP 05 30 and FP 05 31 combine this exclusion with limited fungi coverage. Wording reviewed: 03 08 edition.
How it fits the farm policy
A farm program endorsement changes only the coverage forms named in its "this endorsement modifies" list. Everything else in the Farm Coverage Part keeps working as written: the FP 00 90 additional coverages, conditions and definitions, the causes of loss selected from FP 10 60, and the farm liability forms. When presenting a quote, list each farm endorsement with its schedule entries (insured location, building or item, limit, deductible) so the insured can see exactly where the base coverage was broadened or narrowed.
