Agricultural insurance is a type of insurance designed to protect farmers and agricultural producers from financial losses due to unexpected events. These events can include natural disasters like droughts, floods, or storms, as well as crop diseases and pest infestations. By providing coverage for these risks, agricultural insurance helps ensure that farmers can recover and continue their operations. Farmers typically pay a premium for this insurance, which can cover various aspects of their business, including crops, livestock, and equipment. This financial safety net encourages investment in agriculture and promotes food security by stabilizing farmers' incomes during challenging times.