No matter how well we plan or prepare, financial losses will sometimes impact our lives. Sometimes losses are a direct result of our own decisions or mistakes, and other times losses are caused by factors outside of our control.
Losses can take many forms, including physical injury, property damage, or even emotional distress. In many cases, losses can be assessed and valued in financial terms. Insurance is a mechanism for protecting yourself from financial losses resulting from specific causes. Insurance can pay for car repairs, medical bills, and home restorations. In the area of agriculture, crop insurance can pay for losses from crop failures and/or market downturns.
In this lesson, we will explore fundamental insurance concepts and introduce some common insurance terms and principles. We will also learn how crop insurance can help farmers and ranchers to better survive the financial losses that sometimes occur in agriculture.