Insurable Causes of Loss
SCIC covers you for losses resulting from uncontrollable natural hazards including:
- excessive rain
- accidental fire
- damage caused by wildlife
- plant disease
Losses that are controllable or could have been prevented with sound farm management practices are not covered. If an insured cause of loss cannot be identified, coverage may be reduced or denied; therefore, it is important to notify SCIC immediately when damage occurs.
Organic Uninsured Causes of Loss
SCIC policies are designed to ensure that those producers who use recommended management techniques are not at a financial disadvantage to the few who do not. SCIC expects that organic producers make an effort to prevent or control weed, insect and disease-induced damage using available organic management techniques.
Any “controllable” loss is considered an uninsured cause of loss. Examples include:
- Poor quality seed
- Improper seed placement or seeding depth
- Weed-induced and/or insect-induced yield losses where insufficient
management practices were implemented
Losses that could have been prevented or managed through available organic management techniques are not covered. If there is an insufficient or no attempt to control the damage or the control measure is untimely, SCIC may declare the damage as an uninsured cause of loss and withhold a portion of the claim due to this cause.
How the uninsured cause of loss is applied to your claim depends on the magnitude and the circumstances. The claim will be reduced equal to the yield-loss that can be attributed to the controllable factor, up to the full claim amount. In some circumstances where it is very difficult to measure yield‑loss due to a factor, claim reductions may be made based on the range of yields in the area.
If you elect to insure a certified organic crop as commercial, SCIC considers that all conventional management practices (fertilizers, seed treatments, pesticides) are available to you. SCIC will consider losses deemed to be controllable using conventional methods as uninsured causes of loss.