Running an agribusiness can feel like running across a minefield at times. Not only do you have to avoid a misstep when growing the plants and trees, but you also have to outmaneuver other risks, such as equipment breakdowns, traffic accidents with commercial vehicles, and even customer or worker injuries. You probably know that having insurance can help mitigate the costs of any one of these risks, but if you don’t select the right policy, you will end up with ineffective armor.
Knowing the common pitfalls to avoid when selecting nursery insurance will help you navigate the options out there with more confidence. That way, you will be able to discuss your needs more clearly and know what to look for in proffered policies.
So, without further ado, let’s have a look at mistakes to avoid when buying nursery insurance.
About Nursery Insurance
This kind of coverage is available to businesses that sell field-grown or container-grown plants and make most of their income off such practices. Any business owner who runs a nursery should have nursery insurance, however. There are simply too many risks—like fires, accidents, and injuries—to go without protection.
Pitfalls To Avoid When Buying Nursery Insurance
But how do you choose the best insurance for your business? The first thing is to know the most common mistakes people make when choosing insurance.
Here are the pitfalls we see made most often:
Choosing a Cheap Policy
Yes, saving money is great! Unfortunately, most business make the mistake of seeking to save money by skimping on insurance coverage, which is only going to cost you more in the end. If you decide to choose a policy base solely on a cheap monthly premium, then you are selling yourself short on protection. In the event you have to use that insurance, you won’t receive much relief. In fact, the entire process might be a much more time- and money-consuming burden.
Be sure to ask your agent plenty of questions about the best policies according to your budget. They will be able to outline the benefits of paying a little more into a policy while helping keep the costs from getting too high.
Not Reading The Policy
Every nursery insurance policy is going to have eligibility requirements, coverage limits, reimbursement policies, and deductibles to look over. Because of this, the policy itself is likely to be lengthy and full of jargon. You might not want to read over it—but you should. Doing so helps you avoid any surprises when you go to file claims later on.
After reading the policy thoroughly, don’t be afraid to talk to your insurance agent about things you don’t understand. Gaining a clearer understanding of the policy will help you make better use of it in the future.
Low Liability Limits
Any kind of business can be hit with a lawsuit—even your nursery. Since you can’t predict who might sue your business, or how much money they could be seeking, you need to be prepared for the worst case scenario.
When you choose a general liability policy, for example, you shouldn’t skimp on the limits. One reason is that vendors and even government entities may refuse to work with you if you don’t have enough liability coverage. If you are unsure of the minimum and maximum liability limit for your nursery, be sure to speak with your insurance agent for advice.
Not Adjusting Your Coverage
Your business is not the same as it was a few months or even a few years ago. You have undoubtedly expanded in ways you probably didn’t foresee. You may have acquired new grounds, hired more employees, or even branched out to other areas. When this happens, your nursery insurance policy should evolve as well. Otherwise, your growth is going to move beyond the limits of your current policy.
Always consider reevaluating your insurance policies a few months before the current policy ends. That way, you can make the correct adjustments and keep your business safe from financial harm, no matter what changes occur.
Ignoring Optional Coverage
So, you decided to save money by ignoring the optional coverages. What happens when your commercial vehicle gets into an accident or your electronic files of customer data are ransacked? Didn’t think about that, did you?
Although certain coverages, like auto liability, umbrella liability, and Worker’s Compensation, might not always seem like something you are going to need, it could leave you wide open for some exorbitant and unexpected fees.
For a small increase in the overall premium, you can protect every fact of your business—not just the most important pieces. That not only prepares you for whatever misfortune comes your way but also will keep you afloat.
Forgetting Commercial Auto Insurance
If you run a nursery where you are transporting goods to and from your property, then you would do well to consider commercial auto coverage. This is another pitfall: overlooking the risks of operating vehicles and inland transport. For example, if you don’t have the right kind of insurance for your trucks, you may have only a specific level of coverage the instant they are off your property. Make sure all your equipment, including your commercial vehicles, are classified correctly.
If you are having trouble deciding what level of commercial auto or equipment coverage you need, don’t hesitate to ask your insurance agent. They will be able to work with you and your business to make the best recommendations.
There are a number of pitfalls that many trip over when choosing nursery insurance, such as opting for the cheapest policy, ignoring additional coverages, or setting their liability limits too low. Keep in mind that cheaper isn’t always better, especially in terms of insurance. Make sure you are covering all potential risks and minimizing the chances of financial loss in the future.
If you need help selecting a policy that protects your entire nursery, the works, customers, equipment, and vehicles, then give us a call or fill out the contact form. We will be in touch.
Have more questions about nursery insurance in the meantime? Check out more of our blogs.