Coverage Questions

What is Equipment Breakdown coverage?
Equipment Breakdown coverage includes direct damage to your machinery and equipment resulting from mechanical breakdown, electrical current, arcing or explosion of steam boilers occurring on premises. It will also cover loss of business income resulting from equipment damage. Coverage is automatically included with the purchase of the Premier Package Policy.

What does Installation coverage pay for?
Installation coverage pays for direct physical loss, damage or theft to materials, supplies, equipment, machinery and fixtures that you install at a job site. It applies to property you are about to install or are installing as well as property in transit or in storage at a temporary location. The Primary policy provides $3,000 in coverage, the Premier policy provides an additional $1,000 with optional higher limits available on request.

What does Tools and Equipment coverage pay for?
Tools and Equipment coverage includes direct physical loss, damage or theft to miscellaneous tools and equipment that you own or that are in your care, custody or control. The Primary policy provides maximum $500 per tool with a $3,000 limit. The Premier policy provides maximum $2,000 per tool with an additional $10,000 limit and $5,000 for employee tools. Optional higher limits and coverage for leased or rented tools in your care, custody and control are available upon your request.

What additional coverage is available for work performed by others?

• We offer the following additional insured endorsements for contractors:
• Designated Person or Organization
• State or Political Subdivisions - Permits
• Owner, Lessees or Contractors. Add as additional insured owners or lessees of buildings and contractors, but only for liability for ongoing operations performed for such owners, lessees or contractors by the insured contractor
• Managers or Lessees on Premises
• State or Political Subdivision - Permits Relating to Premises
• Mortgagee, Assignee or Receiver
• Owner/Other Interests from whom land has been leased
• Co-Owners of Insured Premises
• Engineers, Architects, or Surveyors
• Lessor of Leased Equipment

Does my policy cover me for construction defects?
Construction defect claims for residential construction are on the rise and a big concern for contractors. The most common claims involve water intrusion through doors, windows and roofs caused by alleged defective work completed by one or more contractors on the project. The Liability portion of your policy includes coverage for Property Damage or Bodily Injury that may result from your defective work, but the policy does not cover the damage to your product or work.

Questions and answers about Auto Trades coverage

Am I covered for loss of income if my business is shut down due to a loss?
Farmers Premier Package provides business income coverage when a covered loss interrupts your business. There are optional limits depending on the coverage you need.

Is there a way to cover my employee's tools used in the business?
An employee's tools used in connection with your automotive business are covered for direct physical loss, subject to exclusions. This coverage is included as part of our Premier Package with higher limits available for an additional charge.

I own an office building and rent suites to tenants. Are the elevators in my building covered?
Our Farmers Premier Real Estate package provides Equipment Breakdown coverage, which covers elevators and other building systems. You should discuss your specific situation with me.

Is there a policy that would pay for new replacement locks for the entire building should my employee lose the master key?
Our policy includes Lock Replacement, which covers the cost of replacing locks and keys when a key is lost or stolen. No deductible applies to this coverage. You should discuss your specific situation with me.

How does your policy add value for my tenants?
Our Commercial Real Estate policy features coverage typically required by owners of shopping centers or office buildings. While most of the coverage's are designed for the building owner, several add value to the tenants as well. One example is our Tenant Move back coverage, which will help pay the expense of moving a tenant back into your building after a covered loss. This is an added selling point you can offer a prospective tenant.

What should I consider when looking for a new business location?
While "location, location, location" may be the three most important things, you also should consider the overall maintenance of the building, the original building design and surrounding occupancies. Look for occupancies that may present a greater risk to your business. For example, a manufacturing operation located next door may increase the possibility of a fire.

Does Farmers write apartment and condominium insurance?
Farmers is one of the nation's largest insurers of Habitational (apartment and condominium) businesses. We offer a variety of coverage designed to meet your need for property and casualty insurance with products that are specifically designed for your business.

What is included in Condominium Directors and Officers Liability Insurance? This coverage protects condominium board members (past, present and future), employees, committee members, volunteers and others associated with the management of the association against liability claims arising from their decisions and actions made on behalf of the association.

What is Condominium Unit-Owners Insurance?
This optional coverage can be attached to your association's master policy to provide coverage for the individual unit-owners improvements and betterments. Farmers offers a variety of coverage options, which are unique in the industry. They make this coverage very economical and provide the association with added flexibility for managing their claims.

This coverage pays for the expenses you would incur if you had to recall your product because of a dangerous condition within that product. Farmers offers limits of $25,000, $50,000 or $100,000 per occurrence for this coverage.

How can I make sure I have complete coverage for my sophisticated high-tech equipment? The best way to protect your business investment is by insuring your business using the Farmers Insurance Premier Manufacturing Policy. The Premier Policy includes coverage that will pay for damage to your equipment as well as loss of income due to mechanical breakdown of your computer-controlled equipment.

Why does a job shop that doesn't make a product need Products coverage? Even though your liability is limited, we would encourage you to include Products coverage. The reason is that you still could be named in a Products Liability lawsuit. For a small additional cost, adding this coverage provides you with the benefit of having our experienced claims team defend your interests should a claim occur, allowing you to concentrate on managing your business.