By Tahir Abbas, Editor · Last updated 1 November 2026
Agricultural insurance protects farms against the risks that threaten a season’s income: bad weather, disease, fire and machinery breakdown. Farming income depends on things no farmer controls, so the right cover can be the difference between a bad year and a lost business.
This guide explains what agricultural insurance typically covers, what it leaves out, who it suits, and how to compare policies before you buy.
What agricultural insurance typically covers
- Crops: loss from hail, flood, drought, frost and storm, where covered
- Livestock: disease, accident and theft, where covered
- Farm buildings, machinery and stored produce
- Public liability for visitors and neighbouring property
- Business interruption after an insured event
What agricultural insurance typically does not cover
- Poor yields from bad management rather than an insured event
- Gradual damage and wear and tear
- Losses outside the policy period or the insured area
- Market price falls — that is a business risk, not an insured loss
Who agricultural insurance is for
Arable and livestock farmers, smallholders, contractors and farm businesses of any size. Lenders and landlords often require evidence of cover before agreeing finance or tenancies.
How to choose and compare agricultural insurance
- Match crop and livestock sums to realistic values at the time of loss
- Check which weather perils are covered and how claims are measured
- Confirm machinery cover includes hire costs while equipment is repaired
- Review liability limits against the risks your farm presents to visitors
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Sources and Disclosure
This guide is general information, not financial advice. Plan features described here are general and vary by insurer and state; always read the sample policy before you buy. For the rules governing insurance in your state, see the consumer resources of the National Association of Insurance Commissioners (NAIC). Disclosure: Being Insurance is an independent comparison site. We may earn a commission when you buy through links on this page. That never changes which companies we list or the order we present them in.