This article offers a description of AG 00 01 with its coverages, exclusions, definitions, and conditions.

Topics covered:

Covered Property
Property not covered
Additional Coverages
Additional coverages with Limits
Additional crime coverages

Business income and extra expense/dwelling loss of use

Covered causes of loss
Exclusions

Limitations

Additional coverage – collapse

Limits of insurance

Deductible

Loss conditions
Additional conditions

Agricultural capital assets (output policy) coverage form conditions
Optional coverages
Definitions
Endorsements

Covered Property

AG 00 01 pays for direct physical loss of or damage to covered property at covered locations (a defined term) caused by or resulting from any covered cause of loss. The policy is an open perils policy, with the causes of loss curtailed only by the listed exclusions and limitations.

The covered property resembles that found on the building and personal property coverage form, CP 00 10 and capital assets OP 00 01.

The first item of covered property is the building, meaning buildings and structures that include the following:

1.portable buildings and portable structures

2.dwellings, including private structures

3.silos, whether or not attached to the buildings

4.completed additions;

5.glass that is part of the building or structure;

6.fixtures, including outdoor fixtures

7.permanently installed machinery, equipment, platforms and bins;

8.personal property owned by the named insured and used to maintain or service the building, including fire extinguishing equipment, outdoor furniture, floor coverings, heating, air conditioning and ventilation equipment and appliances used for refrigerating, ventilating, cooking, dishwashing, or laundering;

9.builders risk, if not covered under other insurance; with respect to fixtures, machinery, and equipment subject to parts of the definition of “builders risk”, coverage under this provision also includes the named insured's legal liability for similar property belonging to others;

10.awnings and canopies, if located within 1,000 of a covered building

11.fences (except for pasture and field fences), corrals, pens, chutes and feed racks;

12.television and radio towers, antennas, satellite dishes, guy wires, lead in wiring and masts if the property is located within 1,000 of the named insured's covered building; property permanently attached to these types of property is included;

13.signs;

14.foundations of buildings, structures, machinery or boilers;

15.bulkheads, pilings, piers, wharves, or docks;

16.underground pipes, flues, or drains;

17.retaining walls.

Next is business personal property of the named insured. This is business personal property located in or on the buildings or structures at the covered locations or in the open (or in a vehicle) within 1,000 feet of the covered location.

Business personal property consists of the following:

1.furniture and fixtures;

2.machinery and equipment (including irrigation equipment);

3.stock

4.grain, threshed seeds, beans, ground feed, silage and manufactured and blended livestock feed but only while in buildings or structures or in sacks, wagons or trucks;

5.grain in stacks, shocks, swaths or piles in the open. For this property, fire and lightning, windstorm or hail, vandalism, vehicles and theft are the only covered causes of loss;

6.hay, straw and fodder, but only while in buildings or structures;

7.farm products, materials and supplies other than those listed in 4., 5., or 6. above. This includes farm materials and containers usual to the operations of a farm;

8.all other personal property owned by the named insured and used in the business;

9.labor, materials or services furnished or arraigned by the named insured on personal property of others;

10.the named insured's interest as a tenant in improvements and betterments. Improvements and betterments are defined as fixtures, alterations, installations or additions made a part of a building or structure occupied by not owned and acquired by or made at the named insured's expense that cannot legally be removed;

11.personal property the named insured leases and has contractual responsibility to insure;

12.personal property which will become part of the named insured's installation, erection or fabrication project while at the site or in temporary storage pending installation, erection or fabrication; coverage under this provision is not restricted to buildings or structures at the covered location or within 1,000 feet of a covered location; this provision does not apply to builders risks;

13.personal property of others while in the care, custody or control of the named insured, including property sold under an installation agreement until the buyer has accepted the property. The company's payment for personal property of others will only be for the account of the owner of the property;

14.mobile equipment, including: farm machinery, farm vehicles and related equipment owned by the named insured, except while in the custody of a common or contract carrier, if not covered by other insurance, excluded elsewhere in the policy or scheduled elsewhere in the policy; borrowed, leased or rented by the named insured, except while on the premises of its owner. The leased, borrowed or rented equipment must be usual or incidental to farming operations, in the care custody or control of the named insured and the named insured must have no interest as owner or leinholder. Mobile equipment does not include leased, borrowed, or rented personal property of the following types: automobiles, trucks, motorcycles, motorized bicycles or tricycles, mopeds, dirt bikes, snowmobiles, four wheel all-terrain vehicles; mobile homes, house trailers; vehicles primarily designed and licensed for road use; watercraft or aircraft; or the equipment, tires or parts of any of these or dealer's demonstration machinery vehicles or equipment. Coverage for mobile equipment is provided anywhere in the coverage territory. Cotton pickers and harvester-thresher combines are not mobile equipment unless specifically scheduled and described in the Scheduled Mobile Equipment endorsement.

Finally, household property means property of the named insured located in or on dwellings or their appurtenant structures at covered locations or in the open (or in a vehicle) within 1,000 feet of covered locations and, if an individual, household personal property owned by any family member while at the covered location. This also includes household personal property of others while such property is in a part of the named insured's dwelling or on the grounds appurtenant to that dwelling. Household personal property does not include business personal property.

Property Not Covered

As with other property coverage forms, AG 00 01 has a category of property that, by reason of its nature or particular risk exposure, is termed as property not covered. This property is better suited for other types of insurance policies. Examples of the property not covered by AG 00 01 are:

a.Accounts, bills, currency, food stamps, other evidences of debt, “money”, notes, “securities” or “valuable papers and records”;

b.Aircraft and watercraft (except rowboats or canoes while out of water at the covered location), including their equipment or parts;

c.”Livestock” or “poultry” This does not include “livestock” and “poultry” that have been slaughtered for use in a manufacturing or process operation;

d.Automobiles, motorcycles, motortrucks, motorhomes, tractors, “mobile equipment”, and similar vehicles held for sale, lease, loan or rent;

e.Business Personal Property and Household Personal Property while airborne or waterborne except when regularly scheduled airlines or ferry services are transporting the property;

f.Bridges and roadways;

g.Walks, patios and driveways, except those that are appurtenant to a “dwelling”

h.Contents of chicken fryer or broiler houses, laying houses, “poultry” brooder, duck or turkey houses;

i.Contraband, or property in the course of illegal transportation or trade;

j.The cost of excavations, grading, backfilling or filling unless needed to repair, rebuild or replace covered property; any and all costs associated with land stabilization and land reconstruction are excluded;

k.”Electronic Data”; this does not apply to the named insured's stock of prepackaged software, or to electronic data that is integrated in and operates or controls the building's elevator, lighting, heating, ventilation, air conditioning, or security system;

l.Exported and imported property that is covered under an ocean marine cargo insurance policy or similar policy;

m.”Fine arts”, except as specifically provided elsewhere in the policy;

n.The following harvested crops:

(1)Tobacco, cotton, vegetables, root crops, potatoes, bulbs, fruits and nursery “stock” unless a specific limit of insurance is shown in the declarations for such property;

(2)Hay, straw and fodder in stacks, windrows or bales outside of buildings except as provided in the additional coverage section of the policy;

(3)Any other harvested crops outside of buildings;

o.Grave markers and mausoleums;

p.Land, water, growing crops or lawns;

q.Property in transit;

r.Property covered under another insurance policy in which it is more specifically described, except for the excess of the amount due from that other insurance (whether collectable or not);

s.Property of others for which you have responsibility as a carrier for hire or as a broker, carloader, consolidator, freight forwarder, shipping association or similar arranger or transportation;

t.Property you have sold and delivered, except for property you have sold with an installation agreement;

u.Property you have sold under an installment sales contract or similar agreement, or leased property

v.Trees, shrubs and plants;

w.Vehicles or self propelled machines that are licensed for use on public roads, except:

(1)Vehicles you manufacture, process or warehouse; or

(2)Vehicles or self-propelled machines you hold for sale, lease, loan or rent

x.Eggs; and

y.Nursery stock unless a specific limit is shown in the Declarations

Additional Coverages

The limits of insurance for the additional coverages are within, not in addition to, the limits stated in the declarations or scheduled location endorsement as applicable to the covered property. The additional coverages include: brands and labels expense; debris removal; automatic increase for building, business personal property, and household personal property by two percent annually, unless another limit is shown in the declarations; fire department service charge; ordinance or law; personal effects; reward payment; trees, shrubs, and plants; electronic data; household personal property off covered location; household personal property refrigerated products; water damage; grave markers; limited coverage for fungi, wet rot and dry rot; and hay, straw, and fodder outside.

Under the brands and labels expense coverage, the insurer agrees to pay reasonable expenses that the named insured incurs to stamp salvage on the merchandise that is covered property damaged by a covered cause of loss. Also covered is the cost to remove the brands or labels, if doing so will not physically damage the merchandise. This coverage usually applies when the insurer takes the covered property for salvage after it has been damaged.

The cost to remove debris of covered property is paid by the insurer if the costs are reported to the insurer in writing within 180 days of the date of direct physical loss or damage. Debris removal coverage does not apply to costs to remove pollutants from land or water. Debris removal expense is limited to 25% of the sum of the deductible plus the amount payable as direct physical loss or damage to the covered property. The insurer will also pay up to an additional $50,000, unless another limit is shown in the declarations, for debris removal expense for each location in any one occurrence of physical loss or damage to covered property under certain circumstances.

When the fire department is called to save or protect covered property from a covered cause of loss, the insurer will pay up to $10,000 at each covered location for the named insured's liability for such service. No deductible applies to this additional coverage offered under AG 00 01.

The ordinance or law coverage applies to coverage for loss to the undamaged portion of the building, demolition costs, and the increased cost of construction. The loss to the undamaged portion of the building refers to the loss in value of the undamaged portion when an ordinance or law requires demolition of this part of the covered building. The most paid for demolition costs is $100,000 per occurrence; coinsurance does not apply to this coverage. The same is true of the increased cost of construction coverage.

AG 00 01 allows the insured to extend business personal property coverage to personal effects owned by the named insured and his officers, partners, and employees. This coverage extension does not apply to loss or damage by theft, or to property covered under household personal property. The most paid under this coverage is $10,000 per occurrence, unless a different limit is shown in the declarations.

The insurer will reimburse the named insured for up to $10,000 for rewards paid to persons for information leading to the arrest and conviction of any person committing a crime that results in a loss to covered property. An additional $10,000 is available for the return of stolen covered property. No payments will be made until the persons who committed the crime are convicted, or the covered property is returned.

Coverage under business personal property and household personal property is extended to outdoor trees, shrubs, and plants that are not stock when a loss occurs, except for loss caused by wind, weight of snow, ice, or sleet. The most payable is $25,000 per occurrence, but not more than $1,000 per tree, shrub, or plant.

The insurer also agrees to pay for the cost to replace or restore electronic data (a defined term) that has been destroyed or corrupted by a covered cause of loss. The covered causes of loss are limited to the specified causes of loss—which is a defined term—collapse, and a virus or harmful code designed to damage or destroy any part of the computer system. The most paid under this additional coverage is $100,000 for all loss or damage sustained in any one policy year. However, there is no coverage for intentional damage caused by the insured's employees or other entity retained by the named insured.

Coverage for household personal property is extended to anywhere in the world that the named insured does not own or lease, subject to 10% of the household personal property limit in the declarations or $5,000, whichever is greater.

If the named insured is an individual, AG 00 01 will provide up to $1,000 of additional coverage for loss of property in a freezer or refrigerated unit due to interruption of electrical service or mechanical breakdown. Proof of regular maintenance is required.

The policy will pay the necessary cost of tearing out and replacing any part of the building due to damage caused by water or steam that is not otherwise excluded. However, this coverage will not pay the cost to repair the defect that caused the damage. This coverage does not apply to a sump pump or related equipment.

Grave markers away from covered locations are covered for up to $25,000 per occurrence, or $5,000 per grave marker or mausoleum for specified causes of loss.

There is a $15,000 aggregate limit for loss to covered property caused by fungi, wet or dry rot which results from a specified cause of loss (other than fire or lightning) or flood, if the flood coverage endorsement applies to the affected premises.

Business personal property coverage applies to hay, straw and fodder in stacks, windrows or bales outside of buildings for fire, lightning, windstorm or hail, vandalism, vehicles and theft. Unless another limit of insurance is shown in the declarations, the limit of insurance is $100,000 per occurrence.

Additional Coverages with Limits

The following items are covered up to a $100,000 limit, unless a different limit is shown in the declarations. This limit is separate from and will not reduce the limit of insurance shown in the declarations or scheduled location endorsement as applicable to covered property: accounts receivable; business personal property off covered locations; fine arts; and valuable papers and records. The coverage for property off covered locations applies anywhere in the world that the named insured does not own, lease, or operate; the coverage extension does not apply to property in transit or located in a country or jurisdiction subject to economic sanction or embargo by the United States. Fine arts is a defined term and payment is on a market value basis. Fine arts coverage is limited to $100,000 per occurrence for business personal property fine arts, but only $5,000 per occurrence for household personal property fine arts, unless a different limit is shown in the declarations. Coverage for valuable papers and records does not apply to those records that exist as electronic data and excludes property not specifically declared and described in the declarations if such property cannot be replaced with like kind and quality; property held as samples or for delivery after sale are also not included as covered property.

The following items are covered up to a $50,000 limit, unless a different limit is shown in the declarations, separate from the limit shown on the declarations page: consequential loss; recharging or replacing the fire extinguisher systems; inventory and appraisal expense; pollution cleanup and removal; and property in transit; installment sales property; bulk liquid tank storage; and business personal property temporarily in portable storage units (this coverage applies to a unit located within 1,000 feet of a covered location and the property ends 90 days after the business personal property has been placed in the storage unit). The consequential loss coverage applies to the reduction in value of undamaged business personal property parts of a product that becomes unmarketable as a direct result of a covered cause of loss. Inventory and appraisal expense is available for the purpose of determining a covered loss amount. The pollution cleanup coverage is for costs to extract pollutants from land or water at the named insured's covered location, if the release or escape of the pollutants is caused by a covered cause of loss and reported to the insurer in writing within 180 days of the date of loss occurring during the policy period. The property in transit coverage is for business personal property in transit between points anywhere in the United States, its territories and possessions, Puerto Rico and Canada and property shipped by any type of carrier or vehicle. There is an exclusion for loss or damage due to rough handling or improper stowage or packaging. Additionally, damage caused by a breakdown of refrigeration equipment is excluded. A separate valuation condition is added.

Additional Crime Coverages

The limits of insurance shown on the declarations for these crime coverages are separate from and do not reduce the limits of insurance shown in the declarations or in the scheduled location endorsement. The crime coverages are for employee theft, forgery or alteration, money and securities, credit card and electronic fund transfer cards or other access devices; forgery; counterfeit money, money orders and counterfeit money. The most paid under the employee theft and forgery or alteration coverages is $25,000 for any one occurrence, unless a different limit is shown in the declarations. As for the money and securities coverage, the most paid for any one occurrence is $25,000 for loss inside covered buildings or inside a banking or safe depository building; there is a $10,000 limit for loss outside covered buildings while the money and securities are in the custody of a messenger or an armored motor vehicle company. A loss under the credit card and electronic fund transfer card coverage is only $500, but there is no deductible applied to this additional coverage. The most that the insurer will pay for a money order and counterfeit money loss is $5,000 with no deductible applying.

Employee theft coverage applies to loss of or damage to money, securities, and other property resulting directly from theft committed by an employee. The coverage does not apply to loss, the proof of which as to its existence or amount is dependent upon any inventory computation or a profit and loss computation. The money and securities coverage applies to loss resulting from theft, disappearance, or destruction.

Forgery or alteration committed by the insured or employee is not covered.

Coverage is extended under household personal property for legal obligations of the named insured or family members resulting from the theft or unauthorized use of credit cards, electronic fund transfer devices or other access devices, forgery or alteration of a check or acceptance of counterfeit currency accepted in good faith.

Business Income and Extra Expense/Dwelling Loss of Use

There are three coverage options for the insured to choose in this category. Option one is for business income and extra expense including rental value. Option two is for business income and extra expense other than rental value. Option three is rental value and extra expense. If option one is selected, the term business income will include rental value (a defined term); if option three is selected business income will mean rental value only.

Business income coverage is for the actual loss of business income that the named insured sustains due to the necessary suspension of operations during the period of restoration; the suspension has to be caused by direct physical loss of or damage to property at the covered location or to insured property at scheduled locations, caused by or as the result of a covered cause of loss. (Note that business income coverage does not apply if the suspension of insured operations is due to a loss of or damage to growing crops, livestock or poultry.) With respect to business personal property in the open or business personal property in a vehicle, the covered or scheduled location includes the area within 1,000 feet of the covered or scheduled location.

Extra expense means the necessary expenses the named insured incurs during the period of restoration that would not have been incurred if there had been no direct physical loss or damage to property caused by or resulting from a covered cause of loss.

Dwelling loss of use, including additional living expense, fair rental value, and loss and expense due to emergency prohibition against occupancy are covered. These coverages are limited to a period of the shortest time required for repair or replacement of the damaged property. No deductible applies to this coverage.

If the business is ordered closed due to food contamination, coverage is provided up to $25,000, unless a different limit is shown in the declarations at a covered location, if the business is closed by order of the Board of Health of other governmental authority as a result of discovery or suspicion of food contamination. This coverage pays for five categories of loss: (1) to clean equipment, (2) replace the contaminated food, (3) incurred expenses for medical tests or evaluations of infected employees, not covered by a workers compensation policy, (4) the loss of business income sustained due to the necessary suspension of operations, beginning 24 hours after notice is received from the Board of Health or other governmental authority, and (5)subject to a $10,000 limit, unless another limit is shown in the declarations, for additional advertising expenses to restore the insured's reputation. This coverage will not pay for fines or penalties imposed by the Board of Health or other governmental authority.

Covered Causes of Loss

Covered causes of loss means risk of direct physical loss unless excluded or limited.

Exclusions

The coverage under AG 00 01 is on an open perils basis, but there are some listed exclusions and limitations. For more information on these exclusions, see Causes of Loss.

Under AG 00 01, there are five sets of exclusions. The first provides that there is no coverage for loss or damage caused directly or indirectly by any of the following regardless of any other cause or event that contributes concurrently or in any sequence to the loss or damage: earth movement; governmental action; intentional loss; nuclear hazard; utility services; war and military action; water; certain computer related losses; ordinance or law, fungi or wet or dry rot, and virus or bacteria.

The second set of exclusions excludes causes of loss without reference to other causes or events that contribute to the loss. These exclusions include: electrical apparatus; consequential loss; smoke, vapor, gas; other types of losses (such as wear and tear; rust or other corrosion; smog; settling, cracking, shrinking, bulging or expansion; nesting or infestation, or discharge or release of waste products or secretions by birds, insects, rodents and any other animals; mechanical breakdown; dampness or dryness of atmosphere; changes in extremes of temperatures; marring and scratching; fire, loss or damage sustained by buildings or contents usual to a tobacco barn; explosion; liquid seepage or leakage; frozen plumbing; dishonesty; false pretense; exposed property; pollution; neglect; errors or omissions; installation, testing, repair; collapse; collision, upset or overturn; or foreign objects.

The third set of exclusions excludes loss or damage caused by or resulting from the following: weather conditions; acts or decisions of any person, group, or governmental body; and plan design faults. However, if an excluded cause of loss results in a covered cause of loss, loss or damage caused by that covered cause of loss is covered.

The fourth set of exclusions contains special exclusions that pertain to business income and extra expense coverage, valuable papers and records coverage and accounts receivable coverage.

The final exclusion pertains to loss or damage to products. The insurer will not pay for loss or damage to any merchandise, goods, or other product caused by or resulting from error or omission by any person or entity in any stage of the development, production, or use of the product. This exclusion applies to any effect that compromises the form, substance, or quality of the product.

Limitations

There are four sets of limitations within the limitations section of AG 00 01. The first set will not pay for loss of or damage to the following property that is a consequence of loss or damage to: steam boilers, steam pipes, steam engines or steam turbines, hot water boilers or other water heating equipment resulting from any condition other than explosion, the interior of any building or structure or to business personal property in the building or structure resulting from rain, snow, sleet, ice, sand or dust, or property that is missing where there is no evidence of the loss or damage other than a shortage disclosed on taking an inventory. Also included in this category of limitations is property that has been transferred to a person or to a place outside your covered location on the basis of unauthorized instructions. Loss or damage to lawns, trees, shrubs or plants that are part of a vegetated roof will not be paid if the loss or damage results from certain listed causes.

The second set of limitations precludes coverage for loss or damage unless caused by a specified cause of loss (as defined in the policy) or building glass breakage to fragile articles, such as glassware, statuary, marbles, chinaware, and porcelains; this limitation does not apply to glass that is part of a building or structure, containers of property held for sale, photographic or scientific equipment or fine arts. Also not covered for loss or damage are builders' machinery, tools and equipment owned by or entrusted to the named insured unless such equipment is within 1,000 feet of a covered location; this limitation does not apply to business income and extra expense/dwelling loss of use coverage.

The third set of limitations provides special limits for specified categories: $5,000 for furs, fur garments and garments trimmed in fur; for jewelry, watches, jewels, pearls, precious and semi-precious stones, bullion, gold, silver, platinum, and other precious alloys or metals (this limit does not apply to jewelry or watches worth $100 or less per item); for platinum-ware, platinum-plated ware, goldware, gold-plated ware, silverware, silver-plated ware and pewter ware. This includes flatware, hollowware, tea sets, trays, trophies and other similar property made in whole or in part of platinum, gold, silver or pewter. There is a $10,000 per occurrence limit for loss or damage to firearms or related equipment, with a not more than $2,500 limit per firearm or related equipment.

The fourth set of limitations states the insurer will not pay to repair any defect to a system or appliance from which water or other liquid, powder or molten material escapes. However, the insurer will pay to repair damage resulting in a discharge of any substance from an automatic fire protection system or caused directly by freezing.

Additional Coverage – Collapse

This additional coverage applies only to an abrupt collapse, which is defined in the policy as an abrupt falling down or caving in of a building or any part of a building with the result that the building or part of the building cannot be occupied for its intended purpose. The coverage granted in this part of the policy is limited by listed covered causes of loss, exclusions, and limitations. Moreover, collapse does not apply to personal property that has not abruptly fallen down or caved in; and, it does not increase the limits of insurance.

Limits of Insurance

The most the company will pay for loss or damage in any one occurrence is the applicable limit shown in the declarations. The limit of insurance for newly acquired locations is in addition to the business income and extra expense limit of insurance. Payment under the following will not increase the applicable limit of insurance: alterations and new buildings; business income and extra expense caused by dependent properties; civil authority; contractual penalties; extended business income; food contamination; or interruption of computer operations.

Deductible

This section states how the deductible will be applied to any one loss or damage. When the occurrence involves more than one item of covered property and separate limits of insurance apply, the losses will not be combined in determining the application of the deductible. However, the deductible will be applied only once per occurrence. If a covered building is used for both business and residential purposes, the highest applicable deductible will apply.

Loss Conditions

There are seven loss conditions that apply to AG 00 01: abandonment, appraisal, duties in the event of loss or damage, loss payment, recovered property, vacancy and unoccupancy, and valuation. There are also special loss conditions applicable to the business income and extra expense/dwelling loss of use coverages; these pertain to loss determination and loss payment.

Additional Conditions

AG 00 01 has a set of additional conditions. These conditions track with those found under the commercial property program of ISO, and include such items as mortgageholders; coinsurance and information pertaining to when builders risk coverage ceases.

Agricultural Capital Assets (Output Policy) Coverage Form Conditions

This section lists the following conditions which are standard to most property forms.

Concealment, misrepresentation or fraud: allows the insurer to void the policy in the event of fraud or material misrepresentation of a material fact by the insured.

Control of property: An act of negligence by a person beyond the insured's control will not affect the insurance.

Insurance under two or more coverages: If more than one coverage applies to a loss, no more than the amount of the loss will be paid.

Legal action against us: Requires full compliance with all policy provisions and any action must be brought within two years after date of direct physical loss or damage.

Liberalization: program revisions introduced within the policy period that broaden coverage will be automatically adopted without additional premium charges.

No benefit to bailee: the insured is the only one allowed to benefit from this insurance.

Other Insurance: If other similar insurance exists, losses will be paid on a proportional basis; otherwise, this coverage is excess.

Policy period, coverage territory: Unless otherwise stated, territory is the United States, including its territories and possessions, Puerto Rico and Canada . The policy period is stated on the declarations.

Transfer of Rights of Recovery Against Others: States that payment by the insurer to those with rights to recover damages from another, results in those rights being transferred to the insurer.

These conditions track with those found under the commercial property program of ISO. For more information on these conditions, see Commercial Property Conditions. Also see Building and Personal Property Coverage Form.

Optional Coverages

If the actual cash value option is chosen by the insured, ACV replaces replacement cost in the valuation condition of the policy.

There are also optional coverages that apply only to the business income and extra expense coverages. The insured can choose a maximum period of indemnity, a monthly limit of indemnity, or agreed value. To activate this last option, the insured must submit a business income report/worksheet to the insurer that shows financial data for the insured's operations during the twelve months prior to the date of the worksheet.

Definitions

There are thirty-six definitions in the agricultural capital assets program coverage form. The meanings of the various terms are important since coverages and exclusions sometimes hinge on what a word or phrase means.

Accounts receivable means all amounts due from the named insured's customers that he is unable to collect, interest charges, collection expenses, and other reasonable expenses incurred by the named insured to reestablish the records of the accounts receivable.

Builders risk covers building and structures while being constructed at a covered location and includes building materials and supplies, fixtures and machinery, equipment to service the building, foundations of a building, while in the course of construction, temporary structures, including cribbing, scaffolding and construction forms, and building materials owned by others while in the insured's care custody or control and within 1,000 feet of a covered building.

A computer is programmable electronic equipment that is used to receive, process, store, retrieve, or send data. The definition includes component parts, air conditioning, fire suppression equipment, and electrical equipment used exclusively in the computer operations as well as associated peripheral equipment that provides communication including input and output functions such as printing or auxiliary functions such as data transmission. Data and media are not included in the definition.

Counterfeit money means an imitation of money that is intended to deceive and to be taken as genuine.

A covered location is any premises or location where the named insured has buildings or structures that he owns, leases, or operates.

Dependent property means property, operated by others whom the named insured relies on to: deliver materials or services to the named insured (contributing location)- this does not include water supply services, power supply services, or communication services relating to internet access or any other electronic network; accept the named insured's products or services (recipient location); manufacture products for delivery to the named insured's customers (manufacturing location); or attract customers to the named insured's business (leader location).

Dwelling is any building used principally for family residential purposes and includes mobile homes and modular and prefabricated homes. Dwelling does not include storage of farm produce in connection with insured operations, livestock or poultry operations.

Electronic data means information, facts, or computer programs created, stored on, used on, or transmitted to or from computer software. This definition includes systems and applications software on hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other repositories of computer software. The term computer program includes electronic instructions which direct the operations and functions of the computer or device connected to it which enable the computer to receive, process, store, retrieve or send data.

An employee includes both permanent employees and also temporary workers who substitute for the permanent employees who may be on leave while in the service of the named insured and for thirty days after termination. An employee is not a person leased to the named insured by a labor leasing firm. An employee is not an agent, broker, factor, commission merchant, consignee or independent contractor.

Family member includes resident relatives or students while away at school.

Fine arts are paintings, drawings, lithographs, rugs, tapestries, statuary, bronzes, porcelains, marbles, antique furniture, rare books, and other bona fide items of artistic merit.

Finished stock means stock that the insured manufactures, but does not include stock manufactured and held for sale on the covered location of any retail outlet insured under this policy. Finished stock does not include material held for sale at any retail outlet.

Fungi means any type or form of fungus including mold or mildew, and any mycotoxins, spores, scents or by-products produced or released by fungi.

Leased property is any property leased, rented or sent out for approval by the named insured.

Livestock means cattle, sheep, swine, goats, horses, mules, donkeys, bees, and other insects, fish worms, birds and any other animal except poultry.

A manager is a person serving in a directorial capacity for a limited liability company, and a member is an owner of such a company.

Market value means the price that the property might be expected to realize prior to loss or damage if offered for sale, the cost of reasonable restoration of the property or replacement of the property with substantially the same property, whichever is less.

Member is an owner of a limited liability company represented by its membership interest, who may also serve as a manager.

Messenger is the insured, relative, partner, member or employee while having care and custody of property outside covered buildings.

Mobile equipment means agricultural equipment and similar items of mobile nature; unlicensed vehicles which are not operated on public roadways; and self-propelled vehicles built and utilized for carrying equipment attached to them.

Money means currency, coins, and bank notes in current use and having a face value; and traveler's checks, register checks and money orders held for sale to the public.

Occurrence is defined, but only for certain coverages, including additional crime coverage. Under this coverage, an occurrence is an individual act; or the combined total of all separate acts whether or not related; or a series of acts whether or not related committed by an employee, during the policy period. With regard to money and securities, an occurrence is defined as an act or series of related acts involving one or more persons during the policy period.

Operations are the business activities occurring at the named insured's covered location and the tenantability of the insured's covered location with regard to business income, including rental value.

Other property means tangible property other than money and securities that has intrinsic value. Other property does not include computer programs, electronic data or any property excluded under the policy.

Payroll is the payroll expenses of all the employees of the named insured, and this includes employee benefits, FICA payments, union dues, and workers compensation premiums paid by the named insured.

Period of restoration and rental value are terms associated with the business income and extra expense coverages. For information on these definitions, see Business Income (and Extra Expense) Coverage Form.

Pollutants are any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed.

Poultry means fowl kept by the named insured for use or held for sale.

Rental value means the following: the total anticipated rental income from tenant occupancy of the named insured's covered location as furnished and equipped by the named insured; the amount of all charges that are the legal obligation of the tenants and that would otherwise be the obligations of the named insured; and, the fair rental value of any portion of the covered location that is occupied by the named insured.

Securities are negotiable and non-negotiable instruments or contracts representing either money or other property including: tokens, tickets, revenue and other stamps whether in use or not and evidences of debt issued in connection with credit or charge cards, not belonging to the insured.

Specified causes of loss means the following: fire; lightning; explosion; windstorm or hail; smoke; aircraft or vehicles; riot or civil commotion; vandalism; leakage from fire extinguishing equipment; sinkhole collapse; volcanic action; falling objects; weight of snow, ice, or sleet; and water damage. Coverage for sinkhole collapse does not include the cost of filling the sinkhole or sinking or collapsing the land into manmade underground caves. Falling objects does not include loss or damage to personal property in the open or the interior of a building or structure, or property inside of a building or structure unless the roof or an outside wall is first damaged by a falling object.

Stock means merchandise held in storage or for sale, including raw materials and in-process or finished goods and supplies used in their shipping or packing.

Suspension is the slowdown or cessation of business activities or that part of a covered location which is untenantable if business income or rental value coverages apply.

Tank is a permanently installed structure designed to contain liquid contents, including piping, pumps and other appurtenant apparatus and equipment that are an actual part of the covered tank, equipment that connects covered tanks with one another or that is within 100 feet of a covered tank.

Theft means the unlawful taking of money, securities, or other property to the deprivation of the insured.

Valuable papers and records are inscribed, printed, or written documents, manuscripts, or records including abstracts, books, deeds, drawings, films, maps and mortgages. However, this term does not include money or securities.

Endorsements

There are many optional endorsements that are provided in this program that can modify the coverages and exclude some causes of loss. The following list is not exhaustive, but it does emphasize endorsements that may be frequently utilized in this program.

The below ground water and backup of sewer and drain coverage endorsement provides coverage for direct physical loss or damage to covered property caused by or resulting from water or water-borne material overflowing from sewers, drains, sumps, and from underground surfaces flowing or seeping through foundations, basements, or doors.

Livestock coverage provides blanket coverage with a limit of insurance per animal/ per class.

Poultry coverage does not include poultry that have been slaughtered for use in manufacturing or processing operations. Coverage is included for loss or damage to packed and crated eggs, pending shipment.

Warehouse operators legal liability coverage will provide coverage for damages the named insured is legally obligated to pay as a warehouse operator or bailee because of direct physical loss or damage to covered property from any covered causes of loss.

Identity fraud expense coverage will provide up to $25,000 for listed expenses incurred by the named insured or family member as a direct result of any one identity fraud discovered during the policy period.

Flood coverage may be added on an annual aggregate basis. The limit of insurance under this coverage must be equal to or less than that provided for other causes of loss. Coverage is not available if the property is ineligible for NFIP coverage.

The blanket coverage per schedule on file endorsement provides a schedule to list covered locations on a blanket basis. This endorsement redefines the definition of covered location to mean any premises or location owned, leased or operated by the insured and listed in the schedule.

A scheduled mobile equipment endorsement is available. Foreign object coverage is available as an option.