Running a greenhouse or plant nursery takes more than good luck or a green thumb. The industry is continuously influenced by the weather, seasonal changes, and even prices on the market. At any time, there could be an accident or a strike of inclement weather that destroys the plants you have been raising. Further, supply and demand could either drive the costs of plants up or down, making it difficult to maintain a stream of income when faced with unforeseen circumstances.
Fortunately, there is a special kind coverage—nursery insurance—that can provide peace of mind during the worst of times while protecting your business and investment.
What Is Nursery Insurance?
Nursery insurance is a type insurance that can be divided into two categories: Property and liability.
Property coverage typically will include coverage on your buildings, machinery, supplies, and tools. Liability coverage will protect the land that you are growing on, where you use your machinery, and if you invite the public to your location to purchase stock.
In short, nursery insurance plans can be tailored to suit the needs of your business. Before it can be tailored, though, you need to decide the level of coverage you want. Coverage levels include:
- General Liability: The basic level that can be customized to meet your needs. This covers property damage, vehicles, as well as accidents that happen on your premises.
- Commercial Property: This is a more fleshed-out version of basic liability, covering products, plants, and machinery that may not be in the nursery or greenhouse but elsewhere.
- Commercial Auto: Many nurseries and greenhouses have company vehicles. This will protect you and your business in the event that one of your vehicles gets damaged in an accident.
- Worker’s Compensation: If you hire others to work on your business property, then you will need to have this. Worker’s compensation will save your business a lot of money should an employee get hurt while on the job.
In order to receive nursery insurance, your business will have to qualify as a nursery. This means that your enterprise will need to have the majority of your sales come from nursery stock.
All eligibility coverage on your buildings and equipment will need to be determined by the agent that you choose to work with.
What Plants Are Insurable?
Growing plants may receive limited coverage if they are housed in a covered greenhouse. It is best practices to work with a local insurance agent that can help you determine under what circumstances nursery stock is covered under your specific insurance plan.
What Is Covered By Nursery Insurance?
Depending on the level of coverage you select, nursery insurance can also cover the following things:
- The buildings on your business property and the contents
- Farm contents, such as residences and personal property
- Farm products, tools, and supplies
- Pollution cleanup (limited)
- Liabilities – farm and business; bodily injury; property damage; personal injury; medical coverage; farm chemical transportation; employment practices
Nursery Risks and Exposures
You may be wondering why you need insurance for things like buildings or worker injury. Without insurance, your business is constantly at risk of having damage to buildings that you need to operate your business, or employees who get hurt while working for you, will need doctor visits and follow up. No one wants to see their business fail, especially after committing time and money to the enterprise.
Nursery insurance mitigates the risks from the following:
- Premises and Property: Whether your business has public access or not, there is the risk of uneven ground, slippery spots from water, and so on. Exits must be marked and backup lighting has to be in place. Parking lots and sidewalks have to be in decent condition to prevent slips and falls. There is also a chance of fires from fuel, heaters, illumination, and lightning. Decaying materials can combust; winds can get out of control; and greenhouses can get damaged from severe weather.
- Crime: Dishonest employees and theft of money are common crimes at nurseries that can be covered with insurance.
- Business Auto: Nursery transport vehicles can be heavy and difficult to drive, heightening the risk of accidents.
There are other risks involved, of course, but the above listed are what can be decreased or covered with the proper level of nursery insurance.
Your nursery is full of budding value. Don’t lose it to unpredictable circumstances or a poor market. With the right policy, you will have more security and peace of mind, because you will be protected.
Want to learn more about nursery insurance and how it can work for you? Fill out the contact form. We will be in touch.