Price risk (caused by potential volatility in prices) and production risk (resulting from uncertainty about the levels of production primary producers can achieve from activities) are two major risks for the agricultural sector. This primer is concerned exclusively with the use of agricultural insurance by firms in the agribusiness value chain to manage their risks. The primer defines what is meant by agricultural insurance, gives an overview of the market and explains the challenges of this type of insurance. Further, it discusses the range of agricultural insurance products and their practical application in the sector. It concludes with a description of the reinsurance market for agricultural insurance and an overview of public sector participation.