Q

Our CGL insured manufactures harrows. A harrow is a non-motorized piece of equipment that consists of rows of spikes or disks held on a frame pulled behind a tractor to break up the ground. Our problem is that the insurer wants to reclassify the risk upon renewal.

The insurer is currently classing the risk as “Tool Manufacturing — hand type, not powered.” However, they want to renew it with a classification for manufacturers of agricultural machinery. This change in class would result in a rate of more than double that now being charged.

How can we convince the insurer not to change the class?

Mississippi Subscriber

A

A harrow is not a “hand tool, not powered.” Rather, it is a sizeable farm implement pulled behind a tractor and used for tilling the soil. It appears that the risk may have been previously mis-classified and that the insurer is now getting around to classifying it correctly.