November 2, 2017

Insurance Products Available to Protect Against Wildfire Damage

Wildfires recently raged throughout California, causing damage to crops and agriculture-related industries. While there are many types of risk protection available, there are two coverages not commonly referenced during a wildfire crisis: Crop Insurance and Weather Risk options. 

Crop Insurance has the ability to protect the remaining crop as long as the fire (or fires) is not determined to be manmade. Beyond the physical loss of the crop due to the fire, the remainder of the crop could be compromised by smoke damage or smoke taint. Smoke taint will affect the quality of the crop and could present problems at delivery. 

In addition to crop insurance, Western Growers Insurance Services offers Weather Risk to provide compensation to a business if it is affected by some defined weather event. This type of coverage can mitigate risks for growing operations and business entities from the effects of wildfires, adverse weather and price decline. If certain defined conditions occur— such as price decline, wind, excessive rain, lack of rain, freeze, excessive heat or other events— the buyer will get paid even if they do not incur a loss or suffer no financial loss. This coverage is available to any business including growers, wineries, cooling facilities, fertilizer companies, transportation companies, etc.

If you would like to learn more about Crop Insurance and Weather Risk, please contact Crop Insurance Specialist Gretchen Rooney-Adan at (530) 305-7800.