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People who own a farm or operate an agribusiness understand that weather and chance play a considerable role in their financial fortunes. To reduce their vulnerability to the whims of fate, many farmers purchase crop insurance as a financial safeguard. If you are not familiar with crop insurance but feel you might benefit from this type of coverage, Nebraska Crop Insurance Agency in Beatrice, NE, explains below what it is, describes the various types of crop damage insurance, and discusses why you might need protection.

4 Facts About Crop Insurance

What Is Crop Insurance?

Crop insuranceCrop insurance is a specialized type of business insurance that protects growers against the loss of their crops or the loss of income due to low yields or declining prices. It covers numerous perils, and several types of policies are available, including multi-peril crop insurance, hail insurance, and crop revenue insurance.

What Multiperil Crop Insurance?

Multiperil crop insurance — MPCI — is the most common type of crop coverage. It protects against crop damage due to hail, frost, wind, disease, drought, flood, fire, and insects. The cost and benefit payouts are tied to the type of crops insured, and growers can purchase MPCI for 120 different crops, depending on the region.

What Is Hail Insurance?

Hail insurance is a supplemental coverage some farmers purchase to protect high-value crops against destruction by hail. It is usually purchased alongside MPCI — even though MPCI also covers hail — because hail damage can destroy only part of a grower's crop while other areas are left unaffected. The resulting damage is often less than the deductible for an MPCI policy, so unless they purchase separate hail insurance, growers receive no benefit from filing a claim.

What Is Crop Revenue Insurance?

Crop revenue insurance protects agribusinesses from loss of income due to low crop yields and declining crop prices. It offers peace of mind against extreme changes in fortune, and the benefit paid is in relation to the difference in yearly earnings.

The team at Nebraska Crop Insurance Agency in Beatrice, NE, can help you design a crop damage insurance policy that protects you against relevant perils and lets you sleep more easily at night. Visit their website to request a quote, or call (402) 223-2694 to discuss your options with a friendly expert.

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