Farmers are exposed year round to a variety of risks, both market-related, such as price variations, and non-market-related, such as unfavorable weather, pests, and diseases. Such risks make agricultural production unstable from year to year, affecting the income and welfare of agricultural producers. If agricultural commodities are important food or export crops, the risks eventually reduce foreign exchange earnings and further lead to a lower national income and to reduced long-term productive investments in agriculture. Agricultural insurance, a financial tool to minimize the adverse effects of agricultural risks, has been devised to address the agricultural production or yield risks that are mainly due to adverse climate. However, as agriculture became more sophisticated, producers, marketing companies and bankers are demanding insurance to cover a greater number of risks. This paper aims at identifying the recently developed innovative products and schemes of agricultural insurance, followed by some alternatives to insurance. It is an introductory guide for policymakers, farmers, and insurance planners.