Agricultural insurance is an insurance product that focuses on agricultural businesses, tools, buildings and produce. The insurance protects farms, machinery and produce. To protect your crops, you can take crop insurance and if you want to protect an agricultural vehicle, farmers' car insurance UK is a good choice. Most successful farmers have an agricultural insurance UK to protect crops against price fluctuations and natural disasters like pest invasion. With crop insurance, you are sure you will continue farming in the subsequent season even in case of a calamity.
Types of Agricultural Insurance
The following are the different types of agricultural insurance that every farmer in the UK should have:
- Farm structures insurance. Significant money goes into building silos, buildings and fencing. You can protect your structures against disasters such as floods and storms.
- Livestock insurance. This type of agricultural insurance is for livestock farmers to protect their livestock against death resulting from various causes.
- Farm crop insurance. There are two types of farm crop insurance UK; crop-yield insurance and crop revenue insurance.
- Farm equipment insurance. This agricultural insurance protects a farmer's assets like tractors and farming tools.
- Worker's compensation liability. This insurance covers the medical expenses of the farm workers who may get injuries in the course of their work on the farm.
- Commercial vehicle liability insurance. The insurance protects the farmer against liability of repairing the other vehicle that is involved in an accident with his car.
Crop Insurance UK
Crop insurance UK is of two types; crop-yield insurance and crop revenue insurance.
Crop yield insurance is available in tow classes; the crop hail insurance that is offered by private insurance companies and multi-peril crop insurance (MPCI) that protects farmers against floods, drought, insects and diseases.
Crop revenue insurance incorporates the features of crop yield insurance ad price insurance. This crop insurance covers a decline in crop prices in the market during the growing season. It protects farmers against losses resulting from different yielding patterns and risks.
Crop insurance can be used as collateral by farmers when seeking loans to increases their crop production capacity. Crop insurance policies are designed to meet the needs of farmers since the farmer must take responsibility for risk management measures. This helps the farmer to meet the farming standards sine they must meet this requirement for compensation in case of a loss.
Crop Insurance Subsidies
Crop insurance provides farmers with financial backup whenever they are farming and marketing their produce. For instance, when there is a drop in the yields, crop revenue insurance helps the farmer deal with upcoming contracts and the future. Crop insurance indemnities are available when there is a loss. For instance, compensation can come after harvesting if there is a reduction in either the yield or revenue.
Crop insurance protects farmers against price fluctuations in the market or natural disasters. Crop insurance premium subsidies and indemnities are not limited, nor are there income caps to purchase crop insurance. To receive agricultural crop insurance, agricultural producers must share the program cost. Agriculture insurance UK is subsidized by the government to reduce the cost to the taxpayers.
In some countries like the US, most of the crop insurance policies are tailored to meet the needs of the farmers. Other countries have private crop insurance.
Crop Insurance Companies
Many companies are offering agricultural insurance. Every agricultural insurance company has different agricultural policies at different prices. To get the best deal, it is best that you compare quotes from different crop insurance providers and then compare them. Alternatively, you can make use of online price comparison sites or shop around to get the best deal. Ask them for their crop insurance prices. Then from the offers, list the top crop insurance companies. Make sure to go for those crop insurance providers that are subsidized by the government. You are likely to find that private crop insurance may be more expensive.