You love to grow flowers, trees, and plants for your customers. Many of your clients count on you for their gardening needs, and you need them to keep your business profitable. However, there are unexpected situations like vandalism, damage to equipment, and employees getting injured that can damage your nursery. If a catastrophe happens, you need insurance to help protect your business. Insurance will help you to reopen faster and with minimal losses. Here is a brief look at some necessary insurance coverage for your nursery business.
What You Should Know About Nursery Insurance
All plant nurseries need a small business insurance policy. However, there is no standard policy that can meet all your needs. In most cases, you will need to build a policy with the right coverage to protect your business. Depending on the stage of your business, you can work with a local agent to evaluate your needs and find the right recommendations for insurance coverage.
The Four Major Types of Insurance
For the most part, plant nurseries are considered a small business. All small businesses need to have commercial property insurance, business liability insurance, commercial auto insurance, and workers’ compensation insurance. If you don’t have these policies, it could spell the end of your business. At the very minimum, you want to add these types of coverage to your insurance policy.
The four most important insurance policies for your nursery include:
Commercial property insurance: This policy will cover your equipment, buildings, and inventory from vandalism, fire, theft, or other issues. If you have property that is destroyed, the commercial property insurance will replace your items.
Business liability insurance: This plan will cover the costs of your legal representation and damages from a lawsuit. For many businesses, lawsuits are a significant threat, and they can ruin your business. You need business liability insurance to help you fight a legal case.
Commercial auto insurance: This type of insurance will cover those accidents that happen when you are using a vehicle for your business. For example, if you make any deliveries, then you should think about commercial auto insurance. It will keep your vehicles protected in the unfortunate event of an accident.
Workers’ compensation: This coverage will pay for medical and related expenses for your employees who are injured on the job. In many cases, workers must lift heavy items or work with chemicals. If that is the case with your nursery, then you must have workers’ compensation insurance.
Boost Your Coverage
With some insurance policies, there are gaps in your coverage. You can fill in those gaps with extra coverage boosters. These boosters will ensure that you have the most comprehensive coverage in the industry. Some of these coverage boosters include:
Umbrella insurance: Umbrella insurance will cover those extra costs if you happen to exceed the limits of your business policy. This insurance will fill in those coverage gaps to keep your business and assets protected from loss.
Business income insurance: This insurance is often called “business interruption insurance,” and it will reimburse you for lost income after a disaster. For those who have a plant nursery as your primary source of income, then you need this policy to avoid significant financial losses.
Specialized Coverage for Nurseries
If you are looking for more coverage for your business, you might want to consider other policies such as:
Processor’s floater or bailee’s policy: These policies are almost identical, but they are different types of insurance. They will both cover customers’ items if you happen to store them at your business. This can include pre-order plants or gardening equipment. If a disaster damages them, then the insurance will refund your clients.
Environmental liability coverage: This policy will cover all legal damage from hazardous materials used at your business. If the material caused ecological damage, you may be liable for the cleanup.
Peak season endorsement: Since nurseries are a seasonal business, this policy will allow you to increase your premiums in the peak season, such as spring and summer. You can add a peak season endorsement to your existing commercial property insurance.
Cyber Insurance Is an Option
Retail stores should always think about adding a policy to protect their customers. If you have a website or sell online, then you must add cyber insurance to your coverage. When your system is hacked, your clients’ credit card information can be exposed. In most cases, you will be responsible for those damages. Cyber insurance will pay to replace your customers’ credit cards and pay for costs as a result of the hacking incident. If you handle any credit card information, then you will need cyber insurance for your nursery.
How Much Does Insurance Cost?
The cost will vary depending on your insurance needs and the unique risks of your business. For most companies, there are several factors to consider, such as:
- The value of your inventory and equipment
- Your location
- Operation of special delivery trucks
- Additional landscaping services
- Number of employees
For a small business, you can expect to spend several thousand dollars per year. However, you can spread out those costs in monthly, quarterly, or yearly payments. If you own a larger nursery, then you can expect to pay more in insurance costs.
You Need Insurance for Your Business
If you want to operate your business in confidence, then you need to have insurance coverage for your nursery. You can add coverage to keep your business protected as you continue to grow. At the Lyman Agency, we can help you find the right policies for your business. Our team will help you through the entire process to ensure the best coverage for your nursery.
If you would like to learn more about our insurance coverage, please take a few minutes to fill out the contact form.