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AAIS was the first advisory organization to develop a standard umbrella program designed for the unique and diverse combinations of personal and commercial risks found on farms.
The AAIS Farm Umbrella Program provides a choice of two base forms designed to fit with an underlying AAIS Farmowners policy:
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A personal farm umbrella, to be written over a Farmowners package that includes a personal liability form; and
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A commercial farm umbrella, to be written over a Farmowners package that includes a commercial liability form. Personal liability coverage for individuals and families residing on the insured premises can be added by endorsement.
Both the personal and commercial umbrella forms can be written over underlying policies from any source that cover liability arising from autos, recreational vehicles, watercraft, employment-related injury, and other causes. Umbrella coverage for these exposures applies strictly on a "follow form" basis, thus protecting an umbrella carrier from exposure to liabilities that have not been underwritten and priced in the underlying layers.
The AAIS Farm Umbrella Program also protects insurers from the risks of trying to write farm umbrella coverage using modified personal and commercial forms. To avoid coverage gaps, unintended exposures, and disputes over what is covered, it is critical that farm umbrellas use the terminology and follow the structure of the underlying farm policy. Also, the AAIS umbrella will be modified as necessary to reflect changes in the underlying Farmowners forms, thus saving the company from being solely responsible for keeping its umbrella up-to-date.
The AAIS Farm Umbrella program has been filed on an advisory basis in all states where the underlying AAIS Farmowners and Commercial Liability Programs are filed and approved. The program includes sample rules and loss cost rating information that can be used as the basis of a company-specific manual. AAIS staff specialists are ready to help companies establish eligibility rules, final loss costs, minimum premiums, minimum underlying limits, and retained limits, and to file the final product.
Materials for staff training are available free of charge with your program affiliation.
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