What agricultural insurance protects

Agribusiness depends on weather and natural phenomena more than other industries: a single drought, hailstorm or late frost can wipe out a farm's results for an entire season. Agricultural insurance helps preserve financial stability: it compensates losses of harvest, death of animals, damage to machinery, buildings and stocks, and protects liability to third parties.

Insurance is needed by crop and livestock farms, greenhouse complexes, poultry farms, fish farming enterprises, grain elevators and processors, as well as lenders and leasing companies financing farmers. In Kazakhstan, agricultural insurance can be combined with state support programs — their terms and availability should be checked separately before the season begins.

Main risks and coverage options

  • Crop harvest — loss or shortfall due to drought, frost, hail, downpours, strong wind, waterlogging, fire; programs with cover against a single peril or comprehensive ones are possible.
  • Perennial plantings — orchards and vineyards.
  • Farm animals and poultry — death or forced slaughter from disease, accidents, natural disasters.
  • Aquaculture — death of fish from changes in water quality, disease, equipment failures.
  • Farm property — buildings, greenhouses, warehouses, grain and feed in storage; see also property insurance.
  • Agricultural machinery — damage and theft, and liability in operation; for more on vehicles see the fleet insurance page.
  • Liability to neighbouring farms and third parties, for example when treating fields.

What is usually not covered

  • losses due to breaches of agrotechnology and veterinary requirements;
  • yield shortfall due to diseases and pests, if these risks are not included;
  • sowing carried out in breach of recommended dates or on unsuitable land;
  • falling market prices and failure to receive expected revenue;
  • losses of which the insurer was not notified in time and could not inspect;
  • events occurring before the contract came into force or after the end of the season.

What determines the price

The cost of insurance is calculated individually and depends on the crop or type of animals, the region and its climatic features, the farm's historical yield, the technology and irrigation used, the set of risks, the level of deductible, the insurance period, the condition of farms and veterinary control, and the value of property and machinery.

How to choose a program and what to look for in the contract

  • Subject matter and territory — the exact location of fields, farms and warehouses, cadastral data.
  • Sum insured — how it is determined: by planned yield and price, by production costs, by the value of the livestock.
  • Deductible — usually expressed as a percentage of the harvest or the sum insured; check whether it applies per field or to the farm as a whole.
  • Insurance period — from sowing or from a certain growth stage until harvest; deadlines for applying before the season starts.
  • Assessment of loss — the method for calculating shortfall, use of average yield, and the role of independent expert examination.
  • Supporting documents — weather service certificates, inspection reports, veterinary reports, accounting data.

What to do if an insured event occurs

  1. Take measures to save the harvest, animals and property.
  2. Notify the insurer within the period set by the contract, before harvesting or disposal.
  3. Obtain confirmation of the event from the weather service, veterinary service or other competent bodies.
  4. Arrange for the insurer's representative to inspect the crops or animals, and keep photos and videos.
  5. Provide documents on yields, costs and the composition of the livestock.

How Polis Re helps

We help identify the risks that are key for the farm, collect data on crops, livestock and property, compare the programs of several insurers and choose clear terms for calculating the loss. We advise how to combine agricultural insurance with protection of property and machinery, and support the farm during settlement. Partners are listed in the insurance companies section. To select a program for the season, leave a request to the broker.