The availability of E&O insurance for crop agents is limited to a handful of carriers. This is because crop insurance is considered as being one of the more complex types of P&C coverage and lawsuits are more frequent.
Crop insurance is purchased by agricultural producers to protect their crop against a host of natural and financial perils. There are various insurance plans available, including the following:
Multiple peril crop insurance: Is a federal program which provides comprehensive protection against various natural perils, such as drought, hail, excessive rain, flood, plant disease, insect infestation, fire, freeze/frost, and tornadoes. It does not provide coverage against low crop prices, theft, poor farming practices, and some other perils. The insurance pricing is primarily based on the type of crops, and the selected yield and price coverage. If the actual yield is affected by a covered cause of loss, then the insurance will pay the difference between the actual yield and the yield coverage based on the selected price coverage.
Crop-hail insurance: Is offered by private carriers and some perils in addition to hail may also be included, such as lightning, fire, vandalism, and transportation. The coverage can be purchased on a stand alone basis or in conjunction with the federal crop insurance coverage.
Crop revenue insurance: Is offered by private carriers and provides coverage against an unexpected shortfall in revenue due to a decline in yield and/or a decline in prices.