Definition - What does Cotton Insurance mean?
Cotton insurance is a type of crop insurance that provides protection for farmers or business people who grow cotton for sale. Cotton insurance can provide coverage for many different perils related to growing cotton for business purposes. Cotton insurance policies can provide protection for the entire cotton growing process.
Insuranceopedia explains Cotton Insurance
A cotton crop can be subjected to a number of different perils that can result in major losses for the grower. The crop could, for example, be destroyed by fire or pests, could be stolen after harvest, or could be affected by inclement weather.
Because the cotton inventory is so vital for cotton producers, many cannot afford to shoulder the losses that would result from the destruction of their crops. Cotton insurance provides protection and assistance for such events.