If you’re in the business of agriculture, then there’s probably nothing more important to you than your crop yield. After all, if you cannot raise your products appropriately, then you won’t be able to sell them, turn a profit and ultimately, earn a living. That’s why it is so imperative to protect your crops with tailored crop insurance, as part of your overall agribusiness insurance portfolio. 

Crop liabilities are unique to individual farmers, but any problem that does arise is likely to cause a significant setback for the impacted operations. Customized crop insurance will be there to protect them from the ramifications of these issues. Here’s how it works. 

What is Crop Insurance? 
Simply put, crop insurance provides compensation to the farm if crops are lost or destroyed due to unexpected incidents. Covered incidents often include: 

• Fire 
  
  
• Wind 
  
  
• Hail 
  
  
• Lightning 
  
  
• Smoke 
  
  
• Theft 
  
  
• Vandalism 
  
  
• Drought 

Additionally, policies are designed to prevent a loss of income just because the farmer could not turn the profit they would otherwise have received. Furthermore, some plans also allow for compensation when declines in prices or government mandates lead to a halt in production. 

Getting the Right Crop Insurance 
No two farm insurance policies are the same, and there are different types of crop insurance available on the market. Two of the primary plans include: 

• Crop-Hail Policies: May be purchased through a private insurer at any point in the season and protect your crops against hail. 
  
  
• Multi-Peril Crop Insurance Policies: These plans are only available at select insurers through the Federal Crop Insurance Program. They cover your crops against a wide range of threats, such as excessive moisture and freezes.  

If you have to file a claim for crop damage, your insurance provider will send an underwriter to investigate the validity of the claim. Upon approval of the claim, you will receive the necessary settlement for your losses, based on the terms of your plan. 

The Cost Of Crop Insurance 
Like with all insurance policies, crop insurance premiums vary considerably. Factors that might influence your policy costs include: 

• The location and size of the farm 
  
  
• The type and number of crops being grown 
  
  
• The season 

Always double check that you have provided the right acreage to your insurance provider, as false information or underinsured acreage may lead to a lack of coverage. 

What’s important to remember is that you should work with your insurance agent to compare the policies and prices of numerous carriers. Only when you get a comprehensive level of coverage can you be assured that you will have protection against worst-case scenarios. No matter what you grow or where you grow, crop insurance can protect your agricultural business from heavy financial loss.