Insurance against specific risks of the agricultural industry, in particular crop insurance, is essential for any company active in that industry.
What is the object of insurance?
The expenditures invested for growing agricultural crops (for winter crops) as well as the value of the future crops (for both winter and spring crops) can be insured to protect agricultural companies against the loss of its crops.
What is the insurance coverage?
Two types of coverage are available: winterkill insurance (cost of production insurance) and crop yield insurance.
In case of crop yield insurance, the indemnity occurs when the actual yield is below the planned yield because of the occurrence of one of the weather-related risks listed in the insurance contract (after deduction of the deductible).
In case of winterkill insurance (cost of production insurance), the indemnity takes place when crops die during the autumn and winter seasons, due to the occurrence of weather-related risks listed in the insurance contract.
- Storm, hurricane and tornado
- Mudslides, avalanche
- Drought (including winter drought) or dehydration of land subject to irrigation
- Damping off
- Dry wind
- Epidemics of plant diseases
- Wrongful acts of third parties, aimed at the destruction of or damage to property (theft, vandalism)
You can find more information about crop insurance in Ukraine on Grainsurance.com, our specialized agricultural insurance service.