Crop insurance is a very broad area of cover for field, horticultural and plantation
crops against losses due to a number of causes. The following are the common
forms of coverage but bespoke cover is available even for crops or farming
operations not listed below:
a. Multi Peril Cover
This policy covers crop losses from all natural, biological and weather
perils. The policy can compensate based on input cost or yield shortfall or
another agreed parameter.
b. Named Peril Cover
This policy covers losses due to specified perils such as hail, fire,
windstorm, frost, or a combination of these. Hail insurance is the most
common named-peril product currently in Zimbabwe.
c. Weather Index Cover
This policy provides cover for crop yield losses due to adverse weather
deviations from historic patterns for indices such as rainfall or
temperature. Usually, this type of cover is common for small scale
farmers.
d. Revenue Crop Covers
Usually an extension of the multi-peril crop insurance, it covers the loss in
revenue where actual revenue is below expected/guaranteed revenue
due to lower yield and/or crop prices.