Coverage Corral

Motorized Bicycles – When Pedaling Alone Just Isn’t Enough.

Motorized bicycles are becoming more and more popular as a transportation alternative. But is a motorized bicycle covered under the General Liability Form? Motorized bicycles are considered mobile equipment and when used on the farm are covered under the GL Form. However, any mobile equipment that enters a roadway becomes subject to any compulsory, financial or motor vehicle law and subsequently is no longer mobile equipment but falls under the definition of an auto and the auto policy terms apply; general liability would not cover any losses.

What does that really mean? It means that as soon as the motorized equipment enters the road, it falls under the requirements of the state laws for motor vehicle operation and any licensing/registration mandates of that state. Any losses or liabilities incurred while on the roadway would then be subject to the terms of an auto policy, not the general liability policy. Bottom line? It is important to know how and where a motorized bicycle is being used. State laws vary in how motorized bicycles are regulated. Understanding how and when the different coverages are triggered will help ensure that your insured is protected.

Home Alone

The definitions of Vacant and Unoccupied Dwellings are different within property coverage, however, the limits of insurance are the same for both. After 120 days of consecutive vacancy or unoccupancy, the limits are reduced by half for the dwelling, building or structure, as well as any contents on a covered claim payment. There are additional limitations in the Basic, Broad or Special Coverage form that can be triggered in the “vacancy” status. Vacancy in the AgriPak® Property Coverage Form means the dwelling, building or structure does not contain sufficient furnishings or other property customary to its intended use or occupancy. For instance, under the Special Form, vacancy for more than 30 days eliminates coverage for vandalism and water damage.

So what about unoccupancy? Unoccupancy can and is applied to any dwelling, building or structure not lived in or being used after 120 days. Even if the dwellings, building or structure are fully furnished and being visited by a caretaker weekly, they can still be considered unoccupied and therefore would have a reduction of limits. It is important to make sure that both of these situations are explained to your insured and the proper endorsements applied so that adequate coverage can be maintained.

Coverage Expanding for Equine Therapeutic Riding Program

Great News – We are expanding our therapeutic riding program to include non-Path certified centers that have at least 5 years of experience and are trained in their field.