You know the importance of insurance for your nursery business. With all the options, it can be overwhelming to choose the right plan for you. Whether you have purchased insurance in the past or you are just starting up your business, you need to know a few pointers for buying insurance. With these tips, the insurance purchasing process will go a little smoother for you.
You Have Legal Obligations
Depending on your state, you might be legally required to purchase insurance. If not, it is always a smart idea to keep your business protected. In many cases, you need to add general liability insurance to your policy. With this insurance, your business will be protected from costs associated with third-party injuries or damages. If you hire employees, you will have to purchase workers’ compensation insurance as well. There are many factors that you need to consider for your nursery business. You want to make sure that the right insurance plan will cover all your legal responsibilities.
Understand What You Need to Insure
As a nursery owner, there are specific risks for your business. Storms, fires, or power outages can destroy your inventory. You also have customers that enter your property to choose plants, flowers, or trees for their homes. Workers will perform duties that require them to use heavy machinery or chemicals. If you make deliveries, then your fleet of vehicles need protection from accidents. For those that deal with vendors, you might even need specific coverage to do business with them.
In addition to that, you probably have expensive equipment that is needed to grow and maintain your business. With all these risks, you need to understand what parts of your business should be insured. At the very least, you should add business liability insurance, commercial property insurance, commercial auto insurance, and workers’ compensation insurance to your policy. There are a variety of options that you can add to your insurance plan to make sure you have the right coverage for your business.
Choose Coverage Over Cost
As a business owner, you probably worry about the cost of insurance. You might want to cut costs on some aspects of your business. However, insurance is not a place where you will want to skimp. You need to realize that business insurance is an added expense, and it is vital to protecting your business from financial problems. When choosing a policy, you might want to stay away from the cheapest options. These plans can leave you exposed to higher financial risks as they only offer limited coverage. You want to choose an insurance plan based on the amount of coverage for your business. When you need to file a claim, you can count on the policy to cover your business without any unexpected financial surprises.
Always Check Your Policy
Your insurance policy will vary from carrier to carrier. Every company sets their own premiums, deductibles, exclusions, and limits. Before you buy a plan, you will want to understand what is included and excluded from the coverage. You never want to have a policy with significant gaps in coverage as it can leave your business vulnerable to financial losses.
Work with Highly-Rated Carriers
Almost all insurance carriers will have a rating. Ideally, you want to choose a company with an “A” or better rating. These companies are known for reliable coverage, consistent terms, and speedy payouts. Along with that, higher rated companies are known for the quality of their insurance plans. In addition to that, you want to purchase insurance from licensed agents. You can save some money by bundling your insurance policies. A business owner’s policy (BOP) combines commercial liability insurance and general liability. In most cases, this bundle is cheaper than buying those two plans on your own. These agents can help you find the right coverage for your business needs and make sure you are fully protected from any mishaps on your property.
Know Your Deductible
Before you purchase your policy, you need to understand your deductible. This cost is the amount that you will have to pay before the insurance company issues you a check. After the deductible is paid, the insurance carrier will cover the rest of the claimant’s costs. Many people will choose a high deductible in favor of lower premiums. In some cases, your deductible might be so expensive that you cannot afford to pay for it when you need to make a claim. If you have a higher premium, it does add to a higher cost for your business. However, when you do have a claim, you will have a smaller amount to pay than those with lower premiums.
Always Overestimate Your Insurance Needs
If you own a business, there is always a chance of a lawsuit against you. For most owners, litigation can financially destroy your business. You should think about adding more than the required minimum coverage for your business. Hopefully, you will never need that extra coverage, but you can have peace of mind with your business.
For nursery businesses, you have many risks to consider. Customers walk on your property, workers handle dangerous equipment, and vehicles are used for deliveries. All those factors can lead to injuries or damages. If you are sued, and the settlement exceeds your limits, then you are responsible for all those extra costs. You can always protect yourself with commercial umbrella insurance. With this policy, you will have additional liability coverage for the chance that a legal situation will exceed your policy limits.
Peace of Mind with Lyman Insure
Business insurance is vital for your nursery business. You want to choose a policy that will keep you and your assets protected from legal actions or damages. At the Lyman Agency, we can help you choose the best coverage for your needs. You don’t want to select a plan that will leave you with less than adequate coverage. Let us keep you covered from the unexpected.
If you want to learn about all our insurance options, make sure to fill out the contact form.