General Liability - NAMIC

General Liability

Tuesday, July 23, 2013, 1:50 p.m.

Roger D. Haist, CPCU, CIC

Vice President – Assistant Manager

Farmers Mutual Hail

West Des Moines, Iowa

Roger D. Haist is vice president and assistant manager of Farmers Mutual Hail Insurance Company of

Iowa’s property/casualty division. Roger began his career in February 1976 in Omaha, Neb., with Farmers

Union Co-Operative Insurance Company of Nebraska. He joined FMH in December 1991 when Farmers

Union became part of FMH. The property/casualty division formed in April 2011.

Roger attended the University of Nebraska-Lincoln. He completed his CPCU designation in October 1999

and his CIC designation in August 2004.

Session Description:

As an important piece of the business, hear from our presenter on some of the latest trends in general

liability as it relates to farms.

Top Three Session Ideas

Tools or tips you learned from this session and can apply back at the office.

1. ______________________________________________________________________

2. _______________________________________________________________________

3. ________________________________________________________________________

General Liability Session Outline

Overview Who is an Insured?

• Multi-Family Dwelling? Definitions

• Recreational Motor Vehicle • Slip and Fall by Visitors or Invitees • Swimming Pool • Exclusions – Both Coverage L & M

o Intentional Acts • Exclusions – Coverage M

o Domestic Employee or Hired Professional o Does Your Dog Bite? o Do You Have an Un-Attractive Nuisance?

• Optional Endorsements • What About the Unusual Risks?

Types of Ag Related Business Farm General Liability or Beyond? General Liability

• Coverage • Sources of Liability • Limits

Q & A

NAMIC AGRICULTURAL RISK INSPECTION SCHOOL

Roger Haist, CPCU, CIC – Vice President – P & C Farmers Mutual Hail Insurance Company of Iowa

General LiabilityNAMIC AGRICULTURAL

RISK INSPECTION SCHOOLA Conversation on Agricultural Liability Exposures and Contract Language

Disclaimer: The content of this presentation is intended as a summary for discussion purposes and should not replace reading and application of actual contract language.

2013 Agricultural Risk Inspection School - Haist Page 1 of 13

EXPERT

EX – SPURTA HAS BEENUNDER PRESSURE

Who is an Insured

PERSONal Liability

You & SignificantFamily Residents

Commercial LiabilityYouFamily ResidentsPartnership / LLCTrust / Life EstateJoint VentureOther on

Declaration


Multi-Family Dwelling????

Definitions

Who is an InsuredBusiness Other than Farming

– Additional Source of Income Insured PremisesLimits – General Aggregate


Recreational Motor Vehicle!“…charged with driving while intoxicated & aggravated unlicensed operation of……”

Slip and Fall by Visitors or Invitees


Or a Swimming Pool?

Exclusions – Both Coverage L & M

Activities related to a business of the insured’s not shown on the declarations

Liability from premises owned but not listed Intentional act of an insured or at direction of

insured (Expected or intended) Pollutants, except hostile fire on the insured

premises.


INTENTIONAL ACTS >>>>My Darling – had a small accident in the driveway, the garage door is bent slightly, scratched the Vette – Your loving wife.P. S. YOUR GIRLFRIEND CALLED!!!

Exclusions – Coverage M

Person on Insured Premises because of business or professional services rendered

Is Workers’ Compensation Required


Domestic Employee or Hired Professional

Does Your Dog Bite?


Or does he run up and jump on you because he’s happy to see you.

Do you have an Un-Attractive Nuisance?


Optional Endorsements

Additional Insured

Additional Residences or Farms Rented to Others

Home or Premises Based Business Activities other than Farming

What about the unusual risks?


If you can dream it, they already do it.

Types of Ag Related Business

Home Based Businesses Custom Feeding/Spraying or Farm Services Dairy Operations Fee Hunting & Fishing Storage Units Hauling for others, Hay, Manure Feed & Seed Sales – Delivery


Farm General Liability or Beyond?

Should Commercial Business Owners coverage be secured for a commercial or industrial risk.

Adult Special Needs Care Contract Rodeo or other Equestrian Events or Clubs Agritainment (Corn Maze, Pumpkin Patch) 4 H or FFA Annual Pancake Fest Pottery Kiln Club Processing for sale/Freezing/Dehydrating Off-Premises Farmers Market Stands

General Liability

General Liability Coverage The Duty to Defend Always Outweighs the Duty to

Indemnify Medical Payments to Others – Not an

acknowledgement of fault Are we offering the protection the insured needs Risk Assessment Premium Determination Loss Control/Safety Measures


Sources of Liability

Legally Obligated to Pay

Criminal Wrong – Imposed by State (proof beyond a reasonable doubt / can be found guilty or not, but cannot be found innocent)

Civil Wrong – Breach of Duty against an individual – action brought by state (only requires a preponderance of evidence)

Either Tort (everything other than Contractual) Arise from wrongful invasion of rights Also negligence (duty owed, breached, injury results, insured was proximate cause) Intentional Torts (Libel printed, Slander verbal, wrongful entry or eviction, false arrest or detention,

assault & or battery) Strict Liability (failure to warn, flaw or defective design) defense difficult but not absolute (example:

disable a sensor that automatically shuts off the mower when you stand) Absolute Liability (Res Ipsa Loquitur) The thing speaks for itself

Always responsible for consequences Dangerous Instrumentality Vicious Propensity Doctrine (animals) Explosives, Firearms, Animals

Or Contractual Liability (Common Law – customary, based on past court cases // or Statutory-written by legislative body the will of the people – always supersedes Common Law Examples: Dram Shop, Wrongful Death)

General Liability Coverage

Agreement Exclusions Incidental Coverage Endorsement for Business Other than

Farming Annual Review Re-Inspection


General Liability Limits

Policy Limits General Annual Aggregate Limits Sub-Limits Separate Specialty Policy Umbrella or Excess Coverage

Questions and Discussion

THANK YOU!

Roger Haist, CPCU, CICVP P & C - Famers Mutual Hail Insurance Company of Iowa


General Liability - NAMIC

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