Farm insurance is a packaged personal-and-commercial line covering the farm dwelling, outbuildings, machinery, livestock, and farm liability. Carriers, MGAs, and TPAs writing farm need a platform that handles scheduled property and incidental commercial exposure together.
Farm insurance is a hybrid property-and-liability line that combines elements of homeowners, commercial property, and general liability into one policy designed for working farms and ranches. It typically covers the farm dwelling, household personal property, farm outbuildings (barns, silos, machine sheds), farm machinery and equipment, livestock, stored grain or feed, and farm liability arising from farming operations.
This page is a line-of-business reference for farm and ranch carriers, MGAs, TPAs, and program administrators evaluating a policy administration platform for farm books written on AAIS Farmowners or proprietary farm forms.
A farm policy bundles the farm dwelling and household contents (Coverage A/B/C-style), farm outbuildings on a scheduled basis (Coverage E/F), unscheduled farm personal property (machinery, tools, hay, grain), and farm liability into a single policy.
For the platform, that means the product has to support scheduled buildings with individual values, scheduled machinery with serial numbers, blanket personal property on a coinsurance basis, and a liability section — all on one policy record.
Farm carriers underwrite individual outbuildings, individual pieces of farm machinery (tractors, combines, implements), and named livestock or livestock by class. Each schedule item carries its own value, year, condition, and underwriting notes.
Mercury supports configurable schedules with itemized values and date-driven rating. The rating engine can weight scheduled exposures separately from blanket personal property and from the liability section.
Farm liability covers premises liability on the farm, liability arising from farming operations, and incidental commercial exposures. It is broader than homeowners liability and narrower than a Commercial General Liability policy.
Carriers writing farm need an underwriting workflow that distinguishes hobby farms from working farms, classifies the operations, captures custom-farming or agritourism endorsements, and routes risks above appetite to a senior-underwriter queue.
Most farm carriers write on AAIS Farmowners coverage forms or on proprietary farm forms filed by the carrier. Endorsements address agritourism, custom farming, livestock perils, equipment breakdown, and incidental business.
Mercury's configurable forms library supports AAIS, ISO, and proprietary form sets, with date-driven endorsement applicability and version control through the policy lifecycle.
Does Mercury support scheduled outbuildings and machinery on the same policy?
Yes. Mercury's product configuration supports scheduled buildings, scheduled machinery, blanket farm personal property, livestock schedules, and a liability section on a single farm policy record.
Can Mercury write farm policies on AAIS Farmowners forms?
Mercury's configurable forms library supports AAIS Farmowners, ISO, and proprietary form sets. Specific forms, endorsements, and filings are driven by carrier product configuration.
Does Mercury distinguish hobby farm from working farm risks in underwriting?
Yes. Mercury's configurable underwriting rules can branch on operation type, gross farm receipts, and exposure class to route hobby, working-farm, and incidental-commercial risks to the appropriate workflow.
