At its core, BAND Coverage is a risk management tool that protects against shallow losses and provides reliable input cost recovery. A lower deductible translates to a higher trigger for the producer’s indemnity, providing support exactly when it is needed.
Loss Trigger: Upper-level percentage of APH where coverage begins. Establishes the deductible.
Coverage Range: Percentage range from Loss Trigger down
to exhaustion point.
Protection Factor: Percentage of applicable Price Election.
How it works: The policyholder may elect a Loss Trigger from 95% to 50%. The policyholder may choose a Coverage Range, available in 1% increments with a minimum of 5% and a maximum of 95%, to establish the “Coverage BAND.”
The Price Protection Factor defaults to 100%, available in 1% increments with a minimum of 5%. Protection Factors are lower for higher Coverage Ranges.
A multitude of combinations can be generated to address shallow loss, price protection, input cost recovery, and liability enhancement for lending.
The bottom line: With BAND, we’re giving you the freedom to design your coverage any way you like. We have thousands of options to target the unique risk management needs of each individual grower.
Or maybe you just need some really great price protection—BAND Coverage can do that too!
Rather than forcing you to gamble with products that use multiple-month discovery periods in the year leading up to planting or during the growing season, BAND Coverage can give you additional Price Protection that you elect. Determine the additional price you are targeting and we can create a custom policy to provide that coverage. You have the choice of having the Price Protection trigger with your MPCI Coverage, or even earlier.