A New Program For Insuring Agribusinesses

Overview: Although the majority of American farms are still owned by individuals or families, the corporate farm has assumed a greater role in the agricultural landscape. Advances in the industrial and manufacturing sectors have greatly affected farming practices. Labor productivity has increased dramatically with highly sophisticated machinery and equipment. More and more farms have consolidated to become larger operations, and production has been transformed to resemble a factory-like system. A large and growing segment of agricultural activity has become big business or “agribusiness.” Put simply, it is the business of processing agricultural products. The AgOP is intended to meet the property insurance needs of suppliers, cultivators and processors of American agriculture. Typical coverages required by these businesses include fire, additional or extended coverages, crime, inland marine, and Aside from the broad protection provided by combining property and inland marine coverages in a single form, several other favorable features are found in the AgOP. Coverage is provided on an open peril or risks not excluded basis. The policy covers risks of direct physical loss unless the loss is limited or caused by a peril that is excluded. It tells about other types of coverages also.

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Format: PDF | Size: 1,198KB | Date: Jan 2003 | Pages: 5