Claiming insurance losses for the disruption of farm operations

Coverage Q&A: Does a loss to livestock trigger coverage under the disruption of farm operations form?

The insured suffered a loss to their livestock. (Photo: FiledIMAGE/Shutterstock)

Every claim is different, and some insurance policies can be difficult to interpret for unique situations. FC&S Expert Coverage Interpretation, the recognized authority on insurance coverage interpretation and analysis for the P&C industry, makes it simple to find credible answers to your complicated coverage questions. Analysis brought to you by our FC&S experts. 

Editor’s Note: This week, a subscriber asks about the conditions need to claim disruption of farming operations and livestock losses.

Question: Our client has a farm property insurance policy that states if a covered cause of loss causes direct physical loss to the farm buildings, machinery, supplies or equipment described in the schedule and located at or pertaining to an “insured location.” This has led us to believe that the loss must occur to the things listed in the policy. But can a loss to livestock trigger disruption of farming operations loss?

— Ohio Subscriber 

Analysis: The ability to schedule certain property for various causes of loss is common across many lines of business. Individuals can schedule expensive jewelry, business owners can schedule certain buildings or specific operations, and farm owners can schedule equipment and other buildings as well. When scheduling property it’s important to remember what is scheduled and for what causes of loss. Not everything is covered, and if the property that is damaged is not scheduled, then resultant damages due to that damage will not be covered.

Answer: To learn the answer to this week’s coverage Q&A, please log into your FC&S Expert Coverage Interpretation account.

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