New! Enhanced Coverage Option (ECO)

Insure up to
95% of expected value.

ECO is an exciting new crop insurance product - an enhanced version of SCO with no level requirements and coverage for more than 30 different crops!

The Enhanced Coverage Option (ECO) provides area-based coverage for a portion of the deductible of your underlying policy, up to 95%. ECO is an optional endorsement to supplement your underlying policy including RP, RP-HPE, YP, YDO, and APH.

How Does It Work?

Coverage is available for 31 spring-planted crops with a contract change date of November 30, 2020 or later.

  • ECO provides area-based coverage for a portion of the deductible of your underlying policy, similar to the Supplemental Coverage Option (SCO).
  • ECO is based on your underlying policy plan of insurance. For example, with Yield Protection, ECO covers yield loss.
  • The amount of ECO coverage depends on the liability, coverage level, and approved yield for your underlying policy.
  • Coverage must be elected by the sales closing date for your underlying policy.

Get a Custom ECO Quote from an FMH Agent

What Are the Benefits?

ECO Icons 95 Percent

Coverage up to 95%
of expected crop value

ECO Icons Added Coverage

Can be added to an individual
or area underlying plan

ECO Icons ARC or PLC

ARC or PLC participation
has no impact on eligibility

Why Choose ECO?

Listen to the FMH InsureCast ECO episode to learn more about how ECO works and who it is right for.

Coverage Options

Choose a coverage band option:
86% to 95% (9% coverage band)
86% to 90% (4% coverage band)

Choose a Coverage Percentage
of 50% - 100%,
in 1% increments

Calculate amount of ECO coverage
Liability of underlying policy/Coverage level of underlying policy x ECO coverage band x Selected coverage percentage


Sample Calculation

COVERAGE and PREMIUM CALCULATIONS

Area Expected Yield: 200 bu/acCorn Projected Price: $4.00/bu
Elected ECO Coverage: 95%Producer's Approved APH: 210 bu/ac
Coverage Range: 9% (95%-86%)Premium rate: 45%
 
$4.00 x 210 bu/ac x 9% = $75.60/ac ECO Amount of Insurance
 
$75.60/ac x 0.45 = ~$34.00/ac Total Premium
$34.00/ac x 0.44 = ~$15.00/ac Premium Subsidy
$34.00/ac - $15.00/ac = $19.00/ac Producer Premium

 

INDEMNITY CALCULATION

Harvest Price: $3.80/buFinal Area Yield: 190 bu/ac
Final Area Revenue: $722/acProducer's Approved APH: 210 bu/ac
 
95%-[$722 / $800] = 4.75% Loss Percentage
4.75%/9% = 52.78% Payment Factor
$75.60/ac x 52.78% = $39.90/ac ECO indemnity


* This sample is for example purposes only. Contact an FMH agent for full details.