Supplemental Coverage Option (SCO)
SCO is an area-based policy endorsement that can be purchased to supplement an underlying crop insurance policy. It covers a portion of losses not covered by the same crop’s underlying policy and provides additional coverage for a portion of the underlying crop insurance policy deductible. The Federal Government subsidizes 65 percent of the premium for SCO. There are separate premium and administrative fees for SCO by crop/county.
The SCO Endorsement begins to pay when county average revenue falls below 86% of its expected level. SCO pays a loss on an area basis, and an indemnity is triggered when there is a county level loss in yield or revenue. Prevented planting and replanting provisions do not apply to SCO and will not impact the SCO coverage.
Producers who elect to participate in Agricultural Risk Coverage (ARC), offered by the Farm Service Agency (FSA), are not eligible for SCO for any FSA farm serial number participating in ARC.
This information is intended for informational purposes only. Nothing contained herein can or should be interpreted to take precedence over policy language, Federal Crop Insurance Corporation/Risk Management Agency regulation, and Underwriting or Loss Adjustment rules.