The agricultural sector is vulnerable to uncontrollable and unpredictable factors, such as the climate. Any businessman in the industry is aware of the risks he takes, but does not want to be left without the money he invested. Therefore, agricultural insurance was created for legal entities and individuals, which provides compensation in the event of natural disasters or other unpleasant consequences.
According to the terms of the insurance service, the object of insurance can be one of the following:
- Plantations. This includes young fruit and wine plantations (not yet bearing fruit) and multi-annual plantations, except for those that are not maintained in accordance with agricultural requirements or have a high degree of rarefaction. The insurance contract is concluded depending on the periods of exposure to possible risks, for a year or several months. The consequences produced in the event of: hail, frost, floods, locust invasion, etc. will be reimbursed. The insured amount for young plantations depends on the planting and maintenance costs up to the time of insurance, and for those in fruit, according to the remaining balance sheet cost.
- Insured objects are: spring crops (sugar beet, sunflower, corn, soybeans, vegetables, tobacco and potatoes), summer crops (wheat, barley, rapeseed) and autumn crops (fruits, grapes, wine and fruit nurseries). The insurance contract is concluded for the possible period of occurrence of risks, such as: excessive drought, hail, frost, crop rotation, floods, torrential rains, locust invasions, fires, etc. The insured amount is equal to that of production, which is established by a calculation made with the agreement of both parties and which depends on the total area, productivity per hectare and market price.
- The following may be subject to insurance: sheep, cattle, pigs, working animals, poultry and others. The policy contract will not be drawn up if there are suspicions about the health of the animals or if the agricultural rules for their maintenance are not respected. The insurance contract is drawn up for a maximum period of 12 months, and the insured risks include: diseases, natural disasters, accidents, thefts and others. The insurance amount, in the case of breeding animals, is established according to market prices, and for fattening animals and poultry, according to the cost of meat and the average mass of an animal.
- Agricultural machinery. The following can be insured: wheeled tractors, crawler tractors, combines, self-propelled excavators with buckets, forklifts, mowers, etc. Agricultural machinery that has not been used for a long time or that has not been maintained according to the requirements will not be subject to protection. The insurance contract is drawn up for a maximum period of 12 months and covers risks such as: road accidents, accidents during operation, accidents caused by uncontrollable factors, natural disasters, illegal actions caused by third parties, theft, robbery, burglary. The insurance amount is determined based on the remaining cost and the amount requested by the beneficiary.
