What is the Supplemental Coverage Option?
The Supplemental Coverage Option (SCO) is a county-level revenue-based or yield-based optional crop insurance endorsement that provides additional coverage for a portion of your underlying crop insurance policy deductible.
SCO can be elected only when a producer has purchased one of the following underlying plans of crop insurance:
The Federal Government pays 65 percent of the premium cost for SCO.
How Do I Buy SCO?
Producers can choose SCO as an endorsement to the underlying policy. This choice must be made by the sales closing date for your underlying policy, and it needs to be with the same insurance company. Any crop on a farm that has been elected to participate in the Agriculture Risk Coverage (ARC) program at Farm Service Agency (FSA) is not eligible for SCO coverage.
Contact your trusted ProAg agent today to discuss policy details and availability.
How Does SCO Work?
SCO follows the coverage of the underlying policy. If Yield Protection is chosen, then SCO covers yield loss. If Revenue Protection is chosen, then SCO covers revenue loss.
The amount of SCO coverage depends on the liability, coverage level and approved yield for the underlying policy. However, SCO differs from the underlying policy in how a loss payment is triggered. The underlying policy pays a loss on an individual basis and an indemnity is triggered when there is an individual loss in yield or revenue. SCO pays a loss on an area basis, and an indemnity is triggered when there is a county-level loss in yield or revenue.
Interested in covering your MPCI deductible? Check out ECO + AIM
Not all coverage or products may be available in all jurisdictions. The description of coverage in these pages is for informational purposes only. Actual coverage will vary based on the terms and conditions of the policy issued. The information described herein does not amend, or otherwise affect, the terms and conditions of any insurance policy issued by any of ProAg’s affiliated insurance companies.