Insuring agricultural products is a mechanism of participating in risk taking which is practically a costly means for transferring risk from farmers and producers to national and private insurers. Today insurance is one of the significant issues in the social economic development program. As one of the new guidelines to cope with the threats agricultural activities impose and as a result reducing the fluctuation in their income, insuring agricultural products has been receiving attention. In 1363 insuring agricultural products ، s regulation was approved and agricultural products insurance fund in agriculture bank was launched, aiming at insuring variety of agricultural products. The goal in this study is it assess agricultural products insurance functioning and it's impact on motivating farmers in Hamadan province. Four out of nine counties of this province were selected through a two-stage cluster sampling. Sampling population included 381 beneficiaries and 37 experts of agricultural products fund calculated through random sampling and Cochran formula, phi, cramer's v, kendall's tau, kruskal-wallis, mann-whitney u, factor analysis, regression and NPV project analysis method were used to analyses the data. The result demonstrated that according to study indexes, statistically, there is a significant difference between the insured group and the uninsured. It was also learned that the beneficiariesknowledge, some of their personality traits, their financial situation, and the position agricultural products insurance has in farmer's view develops a tendency in beneficiaries to insure their products. In the uninsured group also, the farmer's ignorance, and a bad image of insurance in their mind, has a significant influence on their not wanting to insure their products. The result also showed the functioning of agricultural product insurance in different counties and for different products has been different with insurance fund functioning more successfully in water farm than dry farm. The results from variable 's regression equation showed that the positive attitude in the society, high value products, the possibility of insurance payment, no indemnity delay, colza land under cultivation, media, and the beneficiaries who had previously insured their products where the most influential variables in motivating the insured farmers. And the most influential in farmers not being motivated to insure their products were visits to insurance fund activities and the dominant attitude in society. According to experts, the most important variables influencing the success of insurance visits to insurance fund activities, advertising training to inform the farmers, scientific methods of assessing damage, units optimal functioning, and the appropriate man power. Keywords agricultural products insurance, function assessment, motivation, Hamadan province