Combine Damage: Is a Claim Reported If Only the Agent Is Notified?

• By: The Big "I" Virtual University
• March 13, 2026

An insured had a foreign object go through his combine when harvesting. He called and reported the damage to the agent, but didn’t know whether the damage would be over his $5,000 deductible. The agent told him that the agency would enter the loss into their system and asked the insured to let the agency know if it was over $5,000 so they could submit a claim to the company.

The insured finished the year’s harvest and found that the object had caused much more damage than he had realized and wanted to file a claim. The agency submitted the claim around 50 days after the original date of loss, and we provided the company with time-stamped documentation showing that the agency was notified at the time of loss.

The company says they are only paying $2,500 of the damage, as stated in the loss settlement conditions, which state that if the loss is reported to “us” after 30 days, “we” will pay a limit of $2,500 for any loss.

However, the agent contends that due to the language in the your duties section, it refers to giving prompt notice of claims to “us” or “our ” agent, which the insured did when he originally told the agent.

 Q: Is the company correct in limiting the claim to $2,500?

Response 1: The definitions of the policy define “us ” and “our ” as the association or company providing the insurance, not the agent who sold or placed the business. This is how insurance language can be confusing. Yes, you are an agent, but you are not an agent of the association or company providing the insurance as defined in the policy since you are not employed by the company.  The company is correct in limiting payment to $2,500.   

Response 2: Giving notice to the agent is considered giving notice to the insurance company, thus fulfilling the insured’s requirements. However, it must be assumed that the agent passes on notice to the insurer, whether or not original assessments of damage exceed any applicable deductible. An agent’s practice should always be to inform their insurance company principal upon hearing of an occurrence that might give rise to a claim.

Response 3: The agency made a serious mistake and did not follow best practices. The agent should have turned in a claim to the carrier. Then, the claims adjuster and the insured should have worked it out. All claims must be reported in a timely manner. The agency is not a “we” and is not a party to the policy contract.

Your duty is to give prompt claim notice to our agent or us. But if you read your agency-carrier contract, it will likely show the agency is in violation of the carrier’s contract, which requires prompt claim reporting. If the carrier is forced to pay the claim, the carrier might seek reimbursement from the agency for breach of contract.

Response 4: By reporting the damage to the agent of the company, coverage is triggered. However, the failure of the agency or insured to report it to the carrier within 30 days limits coverage to $2,500.   

This sounds like an errors & omissions claim. It is almost always a good idea to report a claim promptly.  

Response 5: Does your agency have an agency agreement with the insurer that appoints the agency as an agent of the company?  If yes, you are the company’s agent to receive notice of loss.

With hindsight, you could have filed a first report informing the insured that they did not know if the damage would exceed the deductible, and you await word.  Then the insurer could have opened a discussion with the insured and decided whether or not to physically investigate or give other direction to the insured, or to your agency for next steps to preserve coverage.

I suggest the agency owner contact the claim manager to request an accommodation to pay the claim.

This question was originally submitted by an agent through the Big “I” Virtual University’s (VU) Ask an Expert service, with responses curated from multiple VU faculty members. Answers to other coverage questions are available on the VU website. If you need help accessing the website, request login information.

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