Maximizing the Advantage of Insurance Firms for Agro/Livestock Farming in Nigeria: Practical Insights for Agricultural Security and Growth.

Agricultural is a huge business in Nigeria. As Agro/food or livestock farmer, you control, and manage the business. However, you only become the risk bearer. This is where Insurance comes into play. Insurance companies can help bear the risk of business activities, coordinates and reorganize - in short, the success and failure of the business depends on how your ability to put things in the right perspective.

An insurance company is a financial establishment which in return for the payment of premium agrees to compensate the insured in the event of his/her suffering a specified loss. Just as easy as possible. Get into the agreement sheet, and you are covered. There are number of risk that can be covered by insurance. These includes:

i. Destruction of property or stock by fire.

ii. Losses arising from burglary or other causes.

iii. Goods in transit.

iv. Motor vechicles.

v. "Third party" claims arising from accidents.

vi. Life assurance.

It is worthy of note that life assurance is in a different category altogether from other types of insurance since the risk is sure or certain to occur. While on the other hand, in other cases, the contingency insured against may not occur. On the strength of this, we have to distinguish between insurance where there is no certainty and assurance where certainty is sure; the only uncertainty in this case being the time it will take place.

Terminologies Used In Insurance Industry.

1. Insurance Bond: This may be described as a personal investment including a measure of life assurance obtained by a single lump sum payment. Bonds are usually for fixed periods of five, 10 or 15 years. However, in some cases the investor can make regular withdrawals, and such bonds are describe as in- come bonds.

2. Insurance Broker: An insurance broker is an independent agent who puts clients seeking insurance in touch with insurers who undertake that type of business. It also acts as an adviser by leading his clients to where they can get favourable services.

3. Insurance Policy: It may be defined as a document setting out the exact terms and conditions of an insurance transaction, the precise risk covered, the period of cover and any exceptions there may be.

There are so many insurance companies in Nigeria, but the best for Agro/food, livestock farmers are:

1. Nigeria Agriculture Occupation

2. Leadway

3. ASAA MASA

You can insure against flood, fire, predator and motality.