Like other new farm endorsements, this exclusion, FL 10 15 Raw Milk Exclusion, applies to the Farm Liability Coverage form FL 00 20. It also can be attached to the Personal Liability Endorsement FL 04 12. In recent years, there has been growing interest in the consumption of raw milk. Proponents claim there are several health benefits, while the F.D.A. warns that raw milk contains various disease-causing pathogens. ISO developed this optional endorsement for those wishing to exclude coverage for injury due to raw milk consumption.
A. The following exclusion is added to:
1. Paragraph 2. Exclusions of Coverage H – Bodily Injury And Property Damage Liability, Coverage I – Personal And Advertising Injury Liability and Coverage J – Medical Payments under Section I – Coverages in the Farm Liability Coverage Form; and
2. Paragraph 2. Exclusions of Paragraphs A. and B. in the Personal Liability Endorsement: This insurance does not apply to:
Raw Milk "Bodily injury", "property damage", "personal injury" or "advertising injury" resulting from the production, processing, distribution, bottling, transportation or selling of raw or unpasteurized milk. This includes food products made from "raw milk" with the exception of cheeses aged at least 60 days.
B. The following definition is added to Section IV – Definitions of the Farm Liability Coverage Form and Paragraph I.3. of the Personal Liability Endorsement:
"Raw milk" means milk obtained from livestock such as cows, sheep and goats that is not put through a pasteurization process prior to consumption.
Analysis
The exclusion is added under specific sections of both the farm liability form and the personal liability form. Under the farm liability form, the exclusion is added to Coverage H Bodily Injury and Property Damage, Coverage I Personal and Advertising Injury, and Coverage J Medical Payments. In the Personal Liability Endorsement, an exclusion is added to Paragraphs A and B under the exclusions section.
Coverage does not apply to any injury, damage, personal injury, or advertising injury, from the production, processing, distribution, bottling, transportation or selling of raw or unpasteurized milk. Any product made from raw milk is excluded, with an exception for cheeses that have been aged over 60 days.
“Raw milk” is defined as milk obtained from livestock, such as cows, sheep, or goats, that has not been pasteurized prior to consumption. Milk that has been pasteurized is no longer considered raw milk.
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Christine G. Barlow, CPCU
Christine G. Barlow, CPCU, is Executive Editor of FC&S Expert Coverage Interpretation, a division of National Underwriter Company and ALM. Christine has over thirty years’ experience in the insurance industry, beginning as a claims adjuster then working as an underwriter and underwriting supervisor handling personal lines. Christine regularly presents and moderates webinars on a variety of topics and is an experienced presenter.