Named Peril Insurance

Agricultural operations can be exposed to specific events that may not be addressed in the same way under every crop insurance policy. Named Peril Insurance may provide protection against one or more causes of loss expressly identified in a private insurance contract.

Unlike coverage written on a broader multiple-peril basis, Named Peril Insurance applies only to the perils specifically listed as covered in the policy or an applicable endorsement. A cause of loss that is not named is generally not insured.

Named Peril Insurance is offered by private insurance companies. Product availability, terminology, eligibility requirements and policy provisions vary by carrier, crop, location and policy period.

Coverage for Specifically Identified Risks

Named Peril Insurance may be structured to address particular physical risks affecting eligible agricultural production or property.

Depending on the product offered, the policy may identify one or more covered perils and establish specific requirements for:

• Eligible crops or agricultural property
• Insured acreage, units or locations
• Coverage amounts or limits
• Deductibles or producer-retained risk
• Policy effective and termination dates
• Inspections or underwriting approval
• Notice-of-loss requirements
• Appraisal and loss-adjustment procedures

The policy may also contain exclusions, limitations, waiting periods, special conditions or endorsements that affect whether and how coverage applies.

The name or general description of a product should not be used as a substitute for reviewing the complete insurance contract.

How Named Peril Coverage Differs from MPCI

Named Peril Insurance is separate from federally reinsured Multi-Peril Crop Insurance.

Depending on the plan selected, MPCI may protect against a broader group of insured causes of loss and may base protection on production, revenue, crop value or an area-based measure. Named Peril Insurance generally focuses on direct loss resulting from the specific peril or perils stated in the private policy.

The two forms of coverage may respond differently to the same event. A loss that is covered under one policy is not necessarily covered under another, and the existence of damage does not by itself establish that an indemnity is payable.

Each policy is evaluated independently under its own terms, conditions and loss-adjustment provisions.

Coverage Is Determined by the Policy

Named Peril policies are not interchangeable. Two products with similar names may contain different definitions, exclusions, deductibles, limits and claim procedures.

Before purchasing coverage, producers should review:

• The precise definition of each insured peril
• The crop, property, acreage or interest being insured
• The applicable coverage amount and deductible
• Any exclusions or limitations
• The beginning and ending dates of insurance
• Conditions that must be satisfied before coverage becomes effective
• The method used to determine the amount of loss
• The producer’s duties following possible damage
• Cancellation, premium and payment provisions

Producers should not assume that related or contributing conditions are covered merely because a named peril occurred. The insurance company determines whether the reported cause of loss and resulting damage satisfy the policy requirements.

Applying for Coverage

Named Peril Insurance may be subject to an application process, underwriting review and carrier approval.

Submitting an application, requesting a quotation or discussing coverage with an agent does not necessarily place insurance in effect. The insurance company may require additional information, an inspection or other underwriting steps before accepting the risk.

Coverage is not retroactive and does not apply to damage or conditions that occurred before the effective date established by the issuing insurance company.

Producers should obtain confirmation that coverage has been accepted and verify the applicable effective date, insured property, coverage amount and policy terms.

Reporting Possible Damage

A producer who believes an insured loss may have occurred should promptly review the policy’s notice requirements and contact Boman & Associates.

Notice deadlines and claim procedures vary by policy and insurance company. Delayed notice or actions that prevent the carrier from inspecting or evaluating the damage may affect a claim.

Before destroying, removing, abandoning, replanting, repairing, harvesting differently or otherwise altering damaged crops or insured property, producers should obtain instructions from the insurance company or its authorized representative.

Photographs, maps, acreage records, production records, receipts and other documentation may be useful. However, the issuing insurance company determines what records, inspections or appraisals are required.

Coordinating Coverage

Named Peril Insurance may be considered alongside MPCI, Crop-Hail insurance or other agricultural risk-management products.

Because different policies may insure different interests, perils and measurements of loss, producers should evaluate how the policies work together. Overlapping policies do not necessarily provide duplicate recovery, and the existence of one policy may affect how another policy applies.

Any interaction among policies is governed by their respective terms, including other-insurance, coordination-of-benefits or similar provisions when applicable.

Named Peril Guidance from Boman & Associates

Boman & Associates assists California and Arizona agricultural producers in reviewing Named Peril Insurance products that may be available for their operations.

We can help producers consider the risks they wish to address, compare available coverage structures and review how a private policy may fit within a broader risk-management program.

Boman & Associates does not determine whether a particular event is covered, establish the amount of a loss or authorize payment of a claim. Underwriting decisions, coverage determinations, inspections, appraisals and claim calculations are made by the issuing insurance company under the applicable policy.

Product availability, covered perils, eligibility requirements, rates, deductibles, limits, exclusions and claim procedures vary by insurance company, crop, location and policy period.

The application, declarations, policy, endorsements and other documents issued by the insurance company control in the event of any difference between those documents and the general information presented on this website.

Contact Boman & Associates to discuss Named Peril Insurance products that may be available for your operation.