Hail Insurance Law and Legal Definition

Hail insurance is an insurance coverage against hail damage to crops. As per the conditions of hail insurance, one party promises to compensate another for the financial loss incurred by the destruction of agricultural products from the forces of nature, such as rain, hail, frost, or insect infestation. However, the coverage will be on a proportionate basis. For example, if loss occurs, a farmer will recover an amount based on the ratio of the damaged part of a crop to the entire crop.