Traditional farm insurance offers cover for fire and hail and can be used to rebuild in the aftermath of a major natural disaster. But what happens if something else damages your crop? That is where multi-peril crop insurance comes in.
Multi-peril crop insurance, or MPCI, covers for a variety of different perils and different crops. While perils differ from policy to policy they can include the traditional fire and hail as well as things like frost, drought, wind and damage caused by wildlife.
“There are two types of MPCI policies,” Kylie Hull, Gallagher Area Director – Dubbo, explained. "One is revenue based and the other is yield based. Within those two policy types, there are different crops and different perils that can be covered.
"The policies can be quite different but MPCI is something that farmers should consider over the long-term.”
MPCI is a relatively new product in Australia but has been offered around the world for some time. With its wider coverage than traditional crop insurance policies, it can help farmers meet a wider range of risks. However, it is more expensive than traditional policies so may not be right for every farmer.
“Anyone can look to take out MPCI,” Hull continued. “It can be expensive but it can give more support through challenging times.
"With 2018 a particularly bad year for drought across large parts of the country, MPCI could have helped farmers bounce back from a challenging year."