A single storm, equipment breakdown, or liability claim can threaten the financial stability of an agri-business. Commercial insurance provides a critical safety net against these risks, but farmers and agricultural entrepreneurs are increasingly struggling to access coverage that meets their needs at a price they can afford.
Based on results from CFIB’s 2024 Special Survey on Insurance, most small- and medium-sized agri-businesses purchase several commercial insurance policies, the most common forms being general liability (93%), property (90%), auto (85%) and business interruption (51%).[1]
This range of protection is necessary for agribusinesses’ multi-faceted operations. However, growing risk factors in agriculture have increased the cost of insurance premiums and reduced the number of providers willing to cover the industry. The rising value of agricultural equipment, prevalence of extreme weather events, and frequency of claims have increased insurer caution—leaving agri-businesses to wrestle with declining coverage availability and skyrocketing cost. [2],[3],[4]
According to many agricultural producers, there is too little choice of insurance plans and providers. In 2024, more than half of agri-business owners (54%) reported dissatisfaction with the insurance policies available to them.[5]
A contributing factor is the business’s source of insurance coverage. Although most agri-businesses (71%) purchase from an insurance broker, a significant portion (29%) purchases from an agent. These figures deviate significantly from the national averages: 80% of all small- and medium-sized enterprises purchase insurance from a broker, and only 19% purchase from an agent.[6] This may place agri-businesses at a disadvantage, as agents only sell the products of one insurance company, while brokers sell the products of multiple companies. Without the ability to compare plans and find the best coverage, they may purchase coverage that is too costly or provides inadequate protection.
Even when working with a broker, others note that there are limited plans covering agricultural operations. Just two companies act as the primary insurer for more than half of small agri-businesses: Intact (33%) and Co-operators (20%) (Figure 1). Other major providers, such as Promutuel or Saskatchewan Government Insurance (SGI), are not available in all provinces and territories—further limiting businesses’ choices.
Figure 1: Top insurance providers for agri-businesses
Source: CFIB, Special Survey on Insurance, March 18 – May 9, 2024, n=82.
Question: Which of the following is your business’s primary insurance provider? (Select as many as apply)
Note: Respondents who selected “Don’t know/Unsure” or selected multiple choices were excluded from the analysis.
Although the federal government’s Department of Agriculture and Agri-Food provides a public insurance program, AgriInsurance, multiple businesses say it offers insufficient coverage for the high costs and complexity of modern farming. Results from CFIB’s 2026 Agriculture Survey show that a majority (57%) of respondents had not used AgriInsurance in the previous three years.[7]
A business owner from Manitoba described the frustration of finding coverage:
“I own and operate a garden centre with greenhouses for production. I have difficulty finding companies who will underwrite greenhouses. I currently have a company covering me but cannot find any competitive options.”
This lack of availability can dissuade businesses from entering the agricultural industry or expanding into new sub-sectors. Another CFIB member from Quebec noted that a lack of insurance options caused them to scrap plans to expand their agri-business:
“I cannot find insurance for some of the activities I would like to do, limiting my business and its profitability.”
Without access to comprehensive coverage, many entrepreneurs will decline to enter high-risk industries. Others will go without insurance, leaving them at heightened risk of legal liability and financial collapse. Yet for those able to secure coverage, affordability remains a major concern, as rising premiums increasingly strain already tight business margins.
The complexity of modern agricultural operations, coupled with access issues, is leading to increased insurance premiums for agri-businesses.
In early 2026, nearly three-in-four agri-businesses reported that their insurance premiums rose over the previous twelve months: 37% experienced a 3-9% cost increase, and an equal portion saw an increase of 10% or more.[8] If an agri-business secured the average 2024 rates for commercial liability, auto, and property insurance, this would represent an increase of $1,339 to $4,464 per year.[9]
CFIB members report that rising premiums have caused them to significantly modify their operations, impacting both long-term planning and day-to-day productivity (Figure 2). Agri-businesses routinely identify insurance as a key cost constraint on CFIB’s monthly Business Barometer®, underscoring the impact of these increased fees on business profitability and optimism.
Figure 2: Most common impacts of increased insurance costs for agri-businesses
Source: CFIB, Agriculture Survey, February 19 - April 17, 2026, n = 191.
Question: What impact have increases in insurance premium costs had on your business? (Select all that apply)
One CFIB member in British Columbia described how rising insurance costs impacted their business’s profitability:
“Our business required two policies for two types of operations, and the high cost was the deciding reason to shut down one of those operations.”
For many agri-businesses, insurance is a risk-management tool that imposes significant cost pressures. As premiums rise, businesses may be forced to make difficult operational decisions to scale back activities, delay investments, or absorb higher costs. Insurance shouldn’t be the bottleneck that hampers agri-business productivity.
As agriculture is a high-risk industry, insurance providers will likely continue to exercise caution in relation to agri-businesses. The following recommendations outline how governments can ensure that small- and medium-sized businesses obtain sufficient and affordable coverage, while recognizing the risk taken on by private insurers: