20 BULLETIN 1043, U. S. DEPARTMENT OF AGRICULTURE. 
that he himself has fully performed his part, he will be indemnified 
for the loss that he has sustained. 
It is hardly necessary to point out that in no ease should the in- 
surance safeguard a man against his own negligence or carelessness. 
Any insurance which does this tends to create a form of moral hazard 
that no company can afford to assume and also to diminish the effi- 
ciency and productivity of agriculture as a source of national wealth. 
While the crop insurance policy to meet requirements fully must 
cover all unavoidable hazards, it would no doubt be going to ex- 
tremes to assert that, in the absence of an offer of such a policy on 
favorable terms, no insurance should be purchased. In certain parts 
of the country the hail hazard' is relatively severe. The average loss 
for a State by reason of hail is rarely if ever as large or as wide- 
spread as the loss from certain other climatic hazards, but the loss 
to those who do suffer from it is often very severe. Not infrequently 
the crops of individual farmers are totally ruined. Because of this 
peculiarity of the hail hazard, losses therefrom being concentrated on 
a relatively few and the damage therefrom being readily distinguish- 
able from that brought about by other causes, it is practicable from 
the point of view of the insurance organization to give protection 
against this hazard alone and to hold down its expenses to a reason- 
able percentage of the premiums. The protection offered by hail 
insurance may be well worth what it costs. Where so-called crop 
insurance covering a variety of hazards is offered, however, the hail 
hazard should certainly be included. It should not be necessary for 
the farmer to secure two insurance contracts in order to be pro- 
tected against serious or total loss. Economy in insurance operations 
and convenience to the insured argue for complete coverage in a- 
single policy. 
It has already been pointed out that the farmer can not wisely shift 
to an insurance company the risks which he can carry himself without 
undue danger to his safety and prosperity. It may also be empha- 
sized that the farmer can not afford to buy insurance protection 
against any of his risks if the expense item involved in the insurance 
operation is unduly large. The insurance machine must operate with 
reasonable efficiency if the seeker of insurance protection is to find 
it profitable for his needs. Assume, for instance, that 50 per cent or 
more of the premiums collected were absorbed in expense of opera- 
tion, thereby making the total cost to all the insured equal or 
exceed the amount received by them in indemnities to cover losses 
incurred. It is obvious that it would be wiser for each one to take 
a chance on a serious loss and thereby have also a chance of retaining 
a liberal income in prosperous years. Under the conditions assumed, 
the purchaser of even a reasonable amount of protection would pay 
out in premiums a large part of his income in good years and possibly 
