Starting in 2010-2011, the government of Nigeria after years of being neglect began to reform the agricultural sector to focus the sector, the government implemented a new strategy called “The Agricultural Transformation Agenda ATA” this policy is aim at helping Nigeria’s refocus attention on agriculture. Growth and development in any economy, especially the agricultural sector is an activity that cannot be effectively carried out without involving insurance, thus insurance plays a vital role in the development of the agricultural sector Nigeria. Agricultural insurance is normally undertaken as a market based activity by private or state sector insurance companies, often with the support measures from government .the government through various policies and intervention has been very active in the promotion of agricultural insurance in Nigeria. This is buttressed by the fact that agriculture has been a predominant occupation which has over the years provided economic development, it accounts for about 40-50% of the GDP.As far as agricultural insurance is concern the place of agricultural insurance cannot be over emphasized .one cannot discuss agricultural insurance before first identifying what insurance means.
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