August 18, 2011

I have a claim on a Farmowner's policy where the insured was using a tractor to pull a piece of equipment out of a waste area. The insured is a dairy farmer, and the waste is put in an area and pumped out periodically during the year. As the tractor was pulling the piece of equipment out, it went into the waste. The waste got into the motor and damaged the motor. Under Section III of the policy, there is a peril for overturn or collision. The policy states: “Farm machinery or vehicles insured under this Section are also covered for direct loss caused by: A. overturn while in operation, but not while being transported; or B. collision with another object. I have advised the insured that I did not believe this would be a covered loss. He states that the waste is considered an object.“ Any thoughts?

Kentucky Subscriber