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 Crop Hail Insurance: What You Need to Know

Crop Hail Insurance: What You Need To Know

Hail is a natural occurrence that can destroy a crop if it is severe enough. Hail storms are more likely to happen in environments that are prone to thunderstorms. It is therefore a risk that should be planned for when farming in such areas. In this article, we will explore how crop hail insurance can help you prepare for these risks and safeguard your agricultural farm against bankruptcy.


The Necessity of Agricultural Hail Insurance

The effects of a hailstorm on a crop can be brutal and can even cause an entire crop to be lost. This will often result in a farmer facing potential bankruptcy and having to close down their farming operation. This drastic and sad outcome can be prevented by investing in crop hail insurance. There are a number of reasons that crop hail insurance is an absolute necessity for farmers and the agricultural industry. Some of the most notable positive effects it can have include:

  • Financial Protection: The main concern with crop loss due to hail, is a farmer losing their entire investment and potential profit for a season. Depending on the intensity of a hail storm a crop could undergo minor damage or loss; however, it could also result in a crop not being marketable at all. Crop hail insurance provides financial protection to farmers, as all of the damages caused will be covered and paid out to the farmer by the insurer. This will allow the farmer to once again have enough capital to recover.
  • Reliable Payment: An insurer will pay out reliably and fairly quickly. Therefore a farmer will not have to suffer for months on end before being able to finance a new crop. This will also provide the farmer with peace of mind allowing them to focus on growing a successful crop.
  • Increased Agricultural Investment: Agriculture can be a risky investment as it depends heavily on the environment and the weather, which cannot be controlled. In the past, this has made individuals hesitant to invest in the agricultural sector. Crop hail insurance allows for agricultural investment to be a stable one, which in turn, assists in the growth of the agricultural industry. It is important to continually grow the agricultural sector to ensure there are enough resources to support the world’s growing population.
  • Economic Stabilisation: When a large hailstorm occurs, it does not just affect one farm or crop. It will often cause a great many crops to be lost. This will, in turn, increase the market price of the crop in question. This can negatively impact prices and the affordability of food sources. Luckily hail crop insurance minimises this risk and the chances of retail prices increasing which will ultimately help with public food availability and affordability.

How Does Crop Hail Insurance Work?

Even though agricultural crop insurance is often referred to as crop hail insurance, it does not only provide protection against hail. Depending on the insurer, crop hail insurance could also cover fire, frost, and transport damage. However, the amount, type, and cost of coverage provided will depend on the type of crop. For example, as eucalyptus is very susceptible to fire damage, the cost of coverage on this crop will be higher. These costs and the chance of risk involved will also depend on the location and environment in which the crop is grown.

In order to have your crop securely insured, you will have to provide your location, the type of crop you will be growing and other vital information. In some cases, an inspection will also be necessary. However, once the required data has been collected, the insurer will be able to work out the risk and recommend a premium and the type of coverage required to ensure safety.


iMPAC Cropsure is an insurance company that specialises in crop hail insurance. They cover farms in most areas of South Africa and will be able to advise you on how you can best protect your investment.

Visit the AgrifoodSA directory to find out more about how iMPAC Cropsure can protect your crops and farming business.

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Crop Hail Insurance: What You Need to Know