Agricultural insurance provides insurance coverage for an agricultural business, vehicle and general farm equipment. Agricultural insurance is also known as farm or crop insurance and useful to farmers by providing coverage against price fluctuations in the market and natural disasters like pest invasion and drought. Farm insurance provides farm, machinery and produce coverage against farm-related risks. You can cover your crops from risks by buying crop insurance. You can also buy farm vehicle insurance UK to cover your farm vehicles.
The agricultural insurance industry has many insurance products and services. Agricultural insurance products in the market include:
- Farm motor insurance
- Livestock insurance
- Farm combined insurance
- Agricultural Motor Insurance
Crop insurance is of two types; crop-yield insurance ad crop revenue insurance.
Crop yield insurance is available in two classes; 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 and 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. Farmers can use crop insurance as collateral when seeking loans to boost their crop production.
Crop insurance prices vary from crop insurance provider to the other. It is because different t insurance companies have varying agricultural policies. To get the best crop insurance quote, you can compare prices from various agricultural insurance companies. Alternatively, you can compare crop insurance rates online by using price comparison sites. You can also shop around to get the best deal.
Private crop insurance may be expensive and therefore, you should go for crop insurance providers subsidized by the government. Farmer crop insurance providers in the UK include:
- National Farmers Union
- Mutual Insurance Society
- Direct Line Insurance Group
- Rural Insurance Group
You can get coverage for up to 10 farm vehicles. They may include tractors, combined harvester, diggers, telehandlers, quadbikes and UTVs. You can combine farm motor insurance into one to cover all your agricultural vehicles and save you time and money. The farm vehicle insurance UK covers your motor when they are at work and in the store. You can get fully comprehensive coverage for agricultural vehicles or machines that are used on your farm.
With farm motor insurance UK, you can add young drivers below 25 years to most vehicles, depending on their insurance group. You can also add a new attachment to the policy without having to inform the insurance provider.
You can get a quote and insurance coverage for farms and smallholders of up to 100 acres. This insurance provides coverage, especially to livestock, property, public liabilities and machinery.
You can get farm combined insurance in a single policy to save time and money. The combined insurance can be broken down into major sections like farm buildings, farm vehicles, and domestic buildings. It can cover livestock, property, business interruption, business money, goods in transit, environmental liability, employer’s liability.
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 farmworkers who may get injuries in their work on the farm.
- Commercial vehicle liability insurance. The insurance protects the farmer against the liability of repairing the other vehicle involved in an accident with his car.
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 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. The government subsidizes agricultural insurance UK to reduce the cost to the taxpayers.