Effective July 1, 2020 Grinnell made a significant change to the Farm-Guard program that you might have missed. $2,000,000 limit of liability is now available for all basic coverages and optional liability endorsements.
Agents currently have binding authority up to $2 million under a Personal Umbrella or Farm Umbrella policy. Under the Direct Farm-Guard program, agents will also have binding authority up to $2 million.
NOTE: The $2 million limit will not be available on a policy where the named insured has one or more employees not covered by a workers’ compensation policy.
Per Guideline 105, Binding Authority. A workers’ compensation policy is required in order to bind the $2,000,000 occurrence liability limit if the named insured has one or more employees.
As part of your binding authority, it will be up to agents to ask about employees and to confirm that there is a Workers’ Comp policy in place if there are employees. None of us want problems at claim time, which is when all of this would have to be confirmed.
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