Conversations are underway about how crop insurance programs could provide risk management tools better tailored to the wine industry, starting with a wildfire smoke endorsement that will be available to California growers in 2025.
The California Association of Winegrape Growers (CAWG) hosted a webinar this week about the new Fire Insurance Protection-Smoke Index, which has an enrollment deadline of Jan. 31.
The big wildfire years in 2020 and 2022 spurred interest in a more efficient way for growers to make claims and for more coverage for these catastrophic events, said Kristine Fox, vice president at Relation Insurance.
To that end, the new endorsement does not require individual vineyards to do lab testing, she said during the webinar. A county-level determination of loss will trigger the coverage. This will be based on the number of consecutive days the county experiences heavy smoke, according to federal weather data. If the 13-day threshold is met, indemnities will be automatically paid, with no claims adjustment process necessary, she said. The more days of smoke exposure, the higher the policy will pay out.
“This is unique,” she said of the approach. “The source of the smoke does not matter on this policy. They are tracking the particles in the air.”
The new endorsement must be purchased with an underlying multiperil policy, which also offers coverage for losses due to wildfire smoke, but, as in years past, growers will need to go through the claims process, including providing lab testing data to receive payment. Combining that coverage with the new endorsement will move growers closer to full liability insurance, Fox said.
The webinar was recorded and will be available from CAWG.
Later this month, CAWG will also host virtual listening sessions to collect feedback from growers on a proposed new Cost Protection Policy, according to a news release from the association. The aim of the policy development is to create a tool to protect growers from sudden rises in input costs for essentials such as fuel and fertilizer. It would lock in input costs at the beginning of the growing season and provide indemnity payments if growers face unexpected increases during the season.
“These listening sessions offer an invaluable opportunity for California wine grape growers to shape a policy tailored to their needs, providing a proactive tool through the Cost Protection Policy to manage unpredictable input costs and enhance financial stability,” CAWG President Natalie Collins said in a statement.
The virtual listening session will be held Nov. 25 at 11 a.m. To register, head to: https://us02web.zoom.us/meeting/register/tZ0pduGppjsiE9Rhj-kT1fgr7vpBTTrHQ_Zl#/registration.
In-person events in Lodi and Napa/Sonoma will be scheduled soon, according to the news release.
—by Kate Prengaman
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