What coverage is designed to protect against financial loss in agriculture?

• A. Crop Insurance
• B. Liability Insurance
• C. Property Insurance
• D. Health Insurance

Answer: (A)

Crop insurance is specifically designed to protect farmers against financial loss in agriculture due to various risk factors such as adverse weather conditions, diseases, pests, and market fluctuations. This type of insurance provides a safety net, ensuring that farmers can recover some of their lost income from crop failures or reduced yields.

Crop insurance policies may cover specific events leading to losses, such as drought or flood, and they can be tailored to the particular needs of different agricultural operations. By mitigating financial risks associated with farming, crop insurance plays a critical role in stabilizing farm incomes and supporting the agricultural sector as a whole.

In contrast, liability insurance primarily protects individuals and businesses from claims of negligence or harm to others, property insurance covers loss or damage to physical property, and health insurance focuses on medical expenses and health-related costs. None of these options addresses the unique financial risks faced in agriculture like crop insurance does.