For more on this part of the insurance industry:
1. visit our farm insurance page for a look at all products in this sector
2. or focus in on all of the agricultural support services insurance products available on IB Markets!
Agricultural support services insurance secures people and organizations that provide essential services to farmers from financial risks. Examples of these services include:
Since these services operate in remote regions and support cold-climate farming innovations, insurance helps them manage threats and continue serving Canada’s agriculture industry.
A seed supplier provides mislabeled seeds to farmers which leads to crop failure and financial losses. The farmers file legal claims and blame the supplier for lost income.
The firm uses errors & omissions coverage to cover legal costs and settlements. Without this agricultural support services insurance, they could have faced millions in damages and possible bankruptcy.
Service providers are using precision farming tools, data analytics, and automation to improve efficiency. Insurance now covers more hazards, including wildfire damage for hay and timothy hay.
The government is also investing in infrastructure and market expansion. These trends introduce new challenges in the agricultural support services insurance sector, such as:
changing regulations: insurers and service providers must adjust to evolving industry rules
ESG expectations: companies must adopt sustainable practices and show social responsibility
rising insurance claims: claims increased in 2024 and are expected to keep growing
Outdated data and poor risk assessments can lead to financial losses for service providers. Brokers should advise clients to update data systems and improve risk management strategies.
Crop insurance in Canada is available through government programs and private insurers. Coverage depends on crop type, location, and insurance level chosen.
Below are some government initiatives that provide this coverage:
Yes, private insurers offer customized policies beyond government plans. Companies like BFL CANADA provide tailored crop insurance for different farm operations.
Many farmers choose coverage levels of around 70 to 80 percent of their average yield or revenue. Coverage varies but typically pays a percentage of a farm’s average yield or revenue.
This insurance covers financial losses from property damage, lawsuits, and service disruptions. Businesses that need this coverage:
Agricultural support services insurance helps keep service providers in business if unexpected events cause damage or legal claims.
In Canada, oilseed and grain farming make the most money. High export demand and good crop prices drive profits. Favorable weather also helps farms grow high-yield crops.
Agricultural support firms often cater to these profitable sectors. Make sure that their services are protected by insurance against financial threats.
AgriStability's program fee is $315 for every $100,000 of reference margin, plus a $55 administrative fee. The annual fee is based on a percentage of a farm’s reference margin, plus an administrative fee.
In recent years, the program covered up to 80 percent of shortfalls when income fell below 70 percent of historical margins.
Program details are subject to change. It is important to check for the most current information.
Coverage options vary, but most policies include:
property insurance: covers damage to offices, warehouses, and farm equipment suppliers from hazards
general liability insurance: safeguards against legal claims if a service causes injury or property damage
professional liability insurance: covers mistakes made by agricultural consultants, farm advisors, or research labs that lead to financial loss
commercial auto insurance: protects vehicles used for equipment delivery, crop consulting, or field services
business interruption insurance: covers lost income if operations stop due to fire, extreme weather, or equipment failure
Due to Canada’s climate and geography, agricultural support services insurance must be personalized to each client’s specific risks and operations.
