Under the AAIS FO-6 Ed 1.0 form, our insured has $75,000 of coverage under Schedule of Farm Personal Property - Coverage F for Harvested & Unharvested Farm Products. Our insured has a business of raising, euthanizing, freezing and prepping minks for transport to a separate company where they are converted to pelts. The insured's property was vandalized and several hundred minks were released. He is claiming the minks are covered under the Harvested & Unharvested Farm Products. What is the definition of Farm Products for Coverage F ? Can minks be considered Farm Products? Under Coverage G, it is clear that animals other than "livestock" are not covered. Would there be coverage under the Harvested & Unharvested Farm Products?
Pennsylvania Subscriber
The FO-6 Farm Coverage covers "livestock" and "poultry" as shown on the declarations with a limit. Minks do not meet the definition of either of these farm operations, and as such they are not included within the industry classification for such coverage. Mink farming is included in a specific SIC classification by NAICS as follows: Industry: 0271—Fur-Bearing Animals and Rabbits Establishments primarily engaged in the production of fur and fur-bearing animals and rabbits. Chinchilla farms Game farms (fur-bearing animals) Fox farms Mink farms Fur farms Rabbit farms The Coverage F provision you reference is as follows: 10. Farm Products and Supplies -- When a "limit" is shown on the "declarations" for Farm Products and Supplies, "we" cover dairy and other farm products usually originating on the "insured premises" and related packing materials and containers. This includes supplies which are used in the operation of the farm. This does not include grain, hay, tobacco, or growing crops or plants. Minks are not "other farm products usually originating" on a farm policy covering livestock and/or poultry, since they are a special industry classification. They do not need to be specifically excluded on the policy because they are not included in the same industry classification as livestock or poultry, and as such no premium has been paid for these other animals. Harvested products are not described in the form but reference is made to products that are harvested by a harvester. Unharvested products are described in the form as barley, corn, oats, rye, wheat and other grains, flax, soy beans, and sunflowers - all of which could be harvested by a harvester and none of which include any type of animal. In the insured's farming operations, other farm animals are not the insured's farm products. The pelts are products since they are processed from the minks but the minks themselves are animals, but they are not harvested products. As such, even the pelts would need to be covered by a coverage form that provides coverage for mink farming operations.