Chapter 7: Texas Farm & Ranch Policy Copy

The Texas Farm & Ranch (TFR) policy is basically the same as the Texas Homeowners policy.

THE MAJOR DIFFERENCE BETWEEN THE TFR AND THE TEXAS HOMEOWNERS’ POLICY INVOLVES THE AREA OF LIABILITY PROTECTION.

Many farmers and ranchers utilize outside labor on their land, operate large and potentially dangerous equipment, own unpredictable livestock and deal with potentially harmful chemicals.

As you can see there is a need for a more diversified policy to meet the exposure of these types of entities.

Can you name some hazards that would be present on a farming or ranching operation?

COVERAGE E (Chemical Drift Liability).

We will pay those sums that the insured becomes legally obligated to pay as damages for physical injury to crops or animals if:

•  The injury was caused by discharge, dispersal, release or escape into the air, from the insured location, of the chemicals, liquids or gases that the insured has used in normal and usual agricultural operations; and
• The chemicals, liquids, or gases entered into the air by some means other than discharge, dispersal, release, or escape from an aircraft. The term physical injury does not include any indirect or consequential damages such as loss, at any time, of the market for crops or animals or use of soil or animals. This coverage applies only to physical injury that occurs during the policy period. The physical injury must be caused by an occurrence. The occurrence must take place at the insured location.