Crop and sowing Insurance: protecting your investments in agribusiness

Agricultural production is one of the riskiest areas of economic activity. The unpredictability of natural conditions, such as frosts, droughts, floods, or other natural disasters, as well as the variability of harvest volumes, are the main factors directly affecting the income level of agricultural producers. Sowing and growing agricultural crops entail significant financial costs for your enterprise, which need to be protected.

That is why PRESTIGE Company offers to help you select the optimal conditions and conclude an agricultural risk insurance contract that will provide reliable financial protection for your investments in future harvests.

What Is insured?

The crop insurance contract covers:

• Future (expected) harvest of agricultural crops from open and/or protected ground and/or perennial fruit-bearing plantations.
• Actual costs of the Policyholder for sowing (planting) and growing agricultural crops from open and/or protected ground.
• Perennial plantations: trees, bushes, fruit and berry plantations, vineyards.
• Future (expected) harvest of agricultural crops from open and/or protected ground and/or perennial fruit-bearing plantations based on the Weather Index. 

Who can be the policyholder?

Policyholders can be individuals and legal entities, regardless of forms of ownership, residents and non-residents of Ukraine.

What insured risks are covered by the Contract?

When insuring future crops and perennial plantations, the insured risks include:

• Weather risks: freezing of winter crops and perennial sown grasses (sowing of previous years, whose useful life according to agricultural standards has not expired); frost; black ice; strong wind (storm, hurricane); excessive moisture; lightning strike; mudflow or mudflow-water flow; earthquake; rockfalls and avalanches; landslide; dehydration on lands subject to forced irrigation or flooding; drought; fire, except forest fires.
• Biological risks: epiphytotic development of plant diseases; epiphytotic reproduction of plant pests.
• Other risks: unlawful actions of third parties; other probable and accidental events. 

What Is the amount of the insurance sum?

• When insuring future (expected) harvest of agricultural crops and/or perennial plantations – within the value of the future harvest. It is determined based on the average yield per 1 hectare in the district or region, or according to the Policyholder's farm records (for the last 5 years or another period stipulated by the contract), by multiplying the average yield by the price of the metric unit of the future harvest and by the insured area.
• When insuring actual costs of the Policyholder for sowing (planting) and growing agricultural crops – in the amount of planned or average costs for the last 3-5 years of the farm for sowing (planting) and growing agricultural crops, based on the data of the farm's economic and social development plan (business plan) and relevant accounting documents.
• When insuring perennial plantations – by agreement of the parties, based on the Policyholder's accounting data, inventory cards for these plantations, or the average cost of similar plantations per hectare in the given district or region. 

Deductible and contract cost

• Is a deductible provided for in the contract? The amount of the unconditional deductible is set by agreement of the parties.
• How much does the insurance contract cost? The insurance tariff ranges from 2.0% to 7.0% or more of the insurance sum.

Term and territory of the Contract

• For what term can the insurance contract be concluded? The insurance contract is concluded for one year or another period agreed upon by the parties, but not more than one season (cycle) of growing one crop (group of crops).
• Territory of the contract? The contract is valid on the territory of Ukraine (the specific location of crop cultivation). 

How Is the amount of insurance indemnity determined?

The amount of insurance indemnity is determined based on the actual damage incurred.

Ensure reliable protection for your agribusiness from unforeseen risks. Contact PRESTIGE Company today to learn more and find the optimal crop and sowing insurance contract for you.