Nursery And Greenhouse Insurance Policy Information
Nursery And Greenhouse Insurance. Nurseries propagate plants from seeds, cuttings, or grafts, and grow them to a size usable by customers. Products grown include flowers, garden fruits and vegetables, groundcovers, herbs, shrubs, and trees. The business is highly seasonal, with most products sold during the spring and summer. Plants can be grown in the open in either fields or containers. They may also be grown in protected structures such as greenhouses designed to provide light and ventilation while protecting the plants from the elements.
Trees and larger shrubs can be sold bare-root or balled and burlapped. Products may be sold directly to consumers, or to retailers and wholesalers. Some sell by mail. The nursery may install purchased items on customers' premises or offer landscape design services. nurseries depend on natural substances such as compost and manure to be successful, plus a number of chemical applications such as fertilizers, fungicides, herbicides, and pesticides. Mowers, pickers, tillers, tractors, and other types of farming machinery are required to support production.
Nursery and greenhouse insurance protects retail and wholesale nurseries from legal liability with rates as low as $67/mo. Get a fast quote and protect your business now.
Below are some answers to commonly asked greenhouses and nurseries insurance questions:
- What Is Nursery And Greenhouse Insurance?
- How Much Does Nursery And Greenhouse Insurance Cost?
- Why Do Nurseries And Greenhouses Need Insurance?
- What Type Of Insurance Nurseries And Greenhouses Need?
- What Does Nursery And Greenhouse Insurance Cover & Pay For?
What Is Nursery And Greenhouse Insurance?
Nursery and Greenhouse insurance is a type of insurance coverage specifically designed for businesses involved in the growing, harvesting, and sale of plants, flowers, and other horticultural products.
This type of insurance provides protection for the business against various risks such as crop damage, theft, and liability for property damage or injury to customers or employees. Some policies may also cover the cost of equipment or materials used in the nursery or greenhouse operation.
This type of insurance is essential for nurseries and greenhouses as it helps ensure that they can continue to operate in the face of unexpected events and losses.
How Much Does Nursery And Greenhouse Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small nurseries and greenhouses ranges from $67 to $89 per month based on location, size, payroll, sales and experience.
Why Do Nurseries And Greenhouses Need Insurance?
Nurseries and greenhouses are businesses that grow and sell plants, flowers, shrubs, and other landscaping materials. These businesses are susceptible to a number of risks and liabilities, which is why they need insurance. Some of the reasons why nurseries and greenhouses need insurance include:
Property damage: Greenhouses are often filled with delicate and expensive plants that can be damaged by natural disasters such as storms, floods, and fires. Insurance can help cover the cost of replacing damaged plants and equipment.
Liability: Nurseries and greenhouses may be held liable if a customer is injured on their property, or if their plants or other products cause damage to a customer's property. Liability insurance can help cover the costs of these types of claims.
Business interruption: If a natural disaster or other event damages a nursery or greenhouse, it may have to close temporarily, leading to a loss of income. Business interruption insurance can help cover the costs of lost income during this time.
Equipment failure: Nurseries and greenhouses rely on a variety of equipment, such as irrigation systems and greenhouses, to grow and maintain their plants. Equipment failure can be costly, and insurance can help cover the cost of repairs or replacement.
Employee injuries: Nurseries and greenhouses often require manual labor, and employees can be injured on the job. Workers' compensation insurance can help cover the cost of medical expenses and lost wages for employees who are injured on the job.
Overall, insurance can provide financial protection for nurseries and greenhouses, allowing them to continue operations and grow their business even in the face of unexpected events and liabilities.
What Type Of Insurance Nurseries And Greenhouses Need?
Running this type of business can be a challenge and you need to have the right nursery and greenhouse insurance to cover your operation. There are a number of different commercial insurance policies that you can look at and you need to know what they are.
You should also know what each policy will do for your business to better understand their importance. Following is some information on the main types of insurance for greenhouses and nurseries:
General Liability Insurance
The first type of insurance that you need to consider is general liability insurance. This insurance cover will protect your business from many liability issues. This type of insurance will generally be flexible and can be customized to meet the needs of your business.
This nursery and greenhouse insurance will generally cover any damage to property that you rent as well as customer slip and falls on your premises. It is recommended that you speak to an insurance provider about the exact cover that you can get with these policies.
It is important to note that different insurance providers will offer different cover with general liability. You will need to read through the cover before you agree to anything and fully understand what you are covered for. This will also help you determine the other types of insurance that you have to get.
Commercial Property Insurance
When you are running any business, you will have to get commercial property insurance. Property insurance will not only cover the building that your nursery or greenhouse is located in, it will also protect your products, plants and the machinery you have.
All property which is connected to the business will be covered by this insurance policy.
Of course, when you are getting this nursery and greenhouse insurance, you will need to verify what is being covered. There are business specific items that you will want to have covered which might not be part of a standard property insurance policy. It is also important to note that there are certain events which cause damage to property that will not be covered by the standard insurance policy.
These events will generally include natural disasters such as floods and earthquakes. To get insurance coverage for these events, you will have to take out additional property insurance policies. Fire, theft, vandalism etc. will generally be covered by the standard insurance policy that you can get.
Business Income Insurance
There are a lot of businesses that forget about business income insurance. This is a serious mistake and you should avoid making this mistake at all costs. As the name suggests, business income insurance will provide cover for the income which is made by the company.
This insurance will replace a loss of income when your business is not able to operate correctly. If there has been damage to the building and your business has to close while repairs are done, this insurance will cover your income.
Not having this nursery and greenhouse insurance will result in your business having to pay the expenses while closed without any income to cover this. There are many businesses which have closed for repairs and never reopened because they did not have the cash flow they needed to stay afloat.
Commercial Auto Insurance
Nurseries and greenhouses typically have business vehicles and you need to have commercial auto insurance for them. This is a requirement for them to legally be on the road and you should never neglect this. You never know when an accident could occur and you need to have the proper insurance to cover this.
The commercial vehicle insurance that you have should cover all of the vehicles that your business owns. If your vehicle is in an accident which was caused by the driver of your business vehicle, you will be liable for the expenses related to this.
If you do not have the right insurance, your business will have to pay out of pocket for all these expenses. This could cripple your business as the costs can add up depending on the severity of the accident.
If you have an employee who is using their personal vehicle for business reasons, you should have a hired and non-owned policy (HNOA) to protect your business.
Crime insurance is a policy that most people do not think to take out separately and believe that it is part of other insurance policies. While some theft will be covered by property insurance, you should also look at crime insurance. This will protect your business more fully from theft and will include employee dishonesty.
Employee dishonesty is generally not covered in property or general liability insurance. Crime insurance will ensure that you are protected from embezzlement or any other problems caused by your employees. Computer-based fraud will also be covered by this insurance and you have to consider this.
Workers Compensation Insurance
If you are going to hire any other employees in your nursery or greenhouse, you need to have worker's comp. Most states require all employers to have this insurance, but you should get this regardless of the legal requirements.
Worker's compensation insurance can save your company a lot of money if an employee is injured - even if you feel that your workers have low-risk jobs.
Regardless of the risk level of the job, an employee does have the chance of injury in any job. Even office workers can be injured and their employers will need to use their worker's compensation insurance to pay out for this.
This insurance policy will cover the costs of any medical treatment employees need for injuries which have been sustained at work. It will also cover the costs of lost wages and any recovery therapy the employee will need to overcome the injury they sustained.
Greenhouse's And Nurseries' Risks & Exposures
Premises liability exposures are moderate due to public access to the premises. Water on the walking surfaces due to watering of plants is common and must be attended to quickly to avoid slips and falls. Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure. Parking lots and sidewalks need to be in good repair and generally level and free of exposure to slips and falls.
If the business is open after dark, there should be adequate lighting and appropriate security for the area. If plants are installed at the premises of others, workers may damage customers' property or disrupt power sources. All utility lines must be identified prior to installation.
Products/completed operations liability exposures are moderate due to the possibility of contaminated plants from the use of chemical applications. Only FDA approved pest control chemicals should be used.
Environmental impairment liability exposures can be high due to the potential for air, land, or water pollution from the use of horticultural chemicals such as insecticides, fungicides, pesticides, and herbicides, fuels for machinery and motor vehicles, and solvents. Use and disposal of all chemicals must be documented and meet all FDA and EPA standards. If there are underground storage tanks, a UST policy will be required.
Workers compensation exposures are high as nurseries are very labor-intensive. Work may be required for long hours and in all kinds of weather conditions. Work may be done at heights, increasing the risk of falls. Training, supervision, and communication are important in maintaining a safe work environment, especially during harvest time when significant numbers of seasonal and/or day laborers may be hired. Working around machinery, tools and equipment can result in a variety of injuries ranging from minor to severe.
Slips, trips, falls, back injuries from lifting, broken bones, foreign objects in the eye, hearing impairment from noise, and muscle strains are common. Exposure to chemicals and organic dust can lead to respiratory issues. Injuries can result from falls from heights and from loading and unloading vehicles.
Property exposures depend on the size of the operation, type of plants grown, and the number and types of buildings. Ignition sources include electrical wiring, fuel, heaters, and smoking. Lightning may strike buildings unprotected by rods and Ground Fault Interrupters (GFIs). Mechanical equipment can overheat or become jammed. Decaying organic material may spontaneously combust. Planned burning operations may become out of control and spread.
Severe winds and tornados may destroy property in certain geographical areas. Many nurseries are located in rural areas where fire response time may be slow and a water supply undependable. Stock in a greenhouse or stored outside of buildings has a high loss potential from wind, rain, and other natural elements. Greenhouses need to be carefully evaluated because they may not be designed to withstand the forces of nature. Older greenhouses made of glass may be subject to frequent breakage losses. Newer greenhouses are simply frames with plastic coverings, which need frequent replacement as they tend to yellow or cloud in the weather and block out necessary sunlight.
Special programs and coverages are available to protect the structures and the growing plants or crops. If live or growing plants are sold, power outages of refrigeration equipment can result in high spoilage losses. Equipment should be maintained on a regular basis, with backup generators available. Greenhouses and plants in the open may be targeted by vandals. Business income exposure is high due to the seasonality of operations.
Crop insurance exposures are high because unprotected plants grown in the open are susceptible to damage by animals, bacteria, drought, flooding, frost, fungi, hail, insects, lightning, snow, viruses, weeds, wildfire, wind, and winterkill. While some of these can be mitigated by proper farming practices or chemical applications, others are considered fortuitous acts that can be covered by either crop/hail or multi-peril insurance.
Crime exposure comes from employee dishonesty and theft of money and securities. Pre-employment background checks should be done on all employees having access to cash. There should be a separation of duties between persons handling money and reconciling bank statements. Money should be regularly collected from cash drawers and moved away from the collection area, preferably to a safe. Bank drops should be made throughout the day to prevent a buildup of cash on the premises.
Inland marine exposures include accounts receivable if customers are billed, computers, goods in transit, mobile equipment, and valuable papers and records for seed source information and product information that may be needed in case of a recall. Equipment stored in buildings can be damaged by fire, explosion, or collapse. Items stored in the open can be damaged by hail or winds. Plants transported to customers can be damaged by overturn or collision.
Business auto exposures are moderate. Plant transport vehicles can be heavy and awkward, especially on narrow rural roads. Drivers should have a valid license and acceptable MVR. Vehicles must be regularly maintained with full documentation kept.
What Does Nursery And Greenhouse Insurance Cover & Pay For?
Nursery and greenhouse operations face a variety of potential legal issues that could lead to lawsuits. These may include but are not limited to product liability issues, workers' compensation claims, property damage, environmental impact concerns, and contractual disputes. Insurance can help mitigate these risks by providing financial protection against potential losses. Here are a few examples:
1. Product Liability: A customer may sue if a plant bought from a nursery or greenhouse dies prematurely, or if it causes an allergic reaction. This is where product liability insurance comes in. It can cover the legal fees and any court-ordered compensation if the nursery is found to be at fault.
2. Workers' Compensation Claims: Employees working in nurseries and greenhouses are exposed to various risks such as injuries from handling heavy equipment or exposure to harmful pesticides. If an employee gets injured and sues the business, workers' compensation insurance can help cover their medical expenses, lost wages, and any legal costs associated with the claim.
3. Property Damage: A greenhouse may experience significant property damage due to a natural disaster, fire, or vandalism. In this case, property insurance would cover the cost of repairing or replacing the damaged property, saving the business from bearing these costs out-of-pocket.
4. Environmental Impact Concerns: Nurseries and greenhouses could potentially face lawsuits related to environmental issues, for instance, if chemical runoff from the business pollutes local water sources. Environmental liability insurance can help cover the costs of legal defense and any damages awarded in such cases.
5. Contractual Disputes: If a nursery or greenhouse fails to fulfill a contract, perhaps by not delivering plants on time or providing substandard products, they could be sued for breach of contract. Professional liability insurance (also known as errors and omissions insurance) can help cover the legal costs and any damages if the nursery or greenhouse is found to be at fault.
In all these examples, the key advantage of having insurance is that it can provide financial protection against potential legal costs and damages, which could otherwise be devastating for the business.
Commercial Insurance And Business Industry Classification
- SIC CODE: 0181 Ornamental Floriculture and Nursery Products, 5261 Retail Nurseries, Lawn and Garden Supply Stores
- NAICS CODE: 111421 Nursery and Tree Production, 111422 Floriculture Production
- Suggested Workers Compensation Code(s): 0005 Farm - Nursery Employees & Drivers, 0035 Farm - Florist & Drivers
0181: Ornamental Floriculture and Nursery Products
Division A: Agriculture, Forestry, And Fishing | Major Group 01: Agricultural Production Crops | Industry Group 018: Horticultural Specialties
0181 Ornamental Floriculture and Nursery Products: Establishments primarily engaged in the production of ornamental plants and other nursery products, such as bulbs, florists'greens, flowers, shrubbery, flower and vegetable seeds and plants, and sod. These products may be grown under cover greenhouse, frame, cloth house, lath house) or outdoors.
- Bedding plants, growing of
- Bulbs, growing of
- Field nurseries: growing of flowers and shrubbery, except forest
- Florists'greens, cultivated growing of
- Flowers, growing of
- Foliage, growing of
- Fruit stocks, growing of
- Greenhouses for floral products
- Mats, preseeded: soil erosion-growing of
- Nursery stock, growing of
- Plants, ornamental: growing of
- Plants, potted: growing of
- Rose growers
- Seeds, flower and vegetable: growing of
- Shrubberies, except forest shrubbery: growing of
- Sod farms
- Vegetable bedding plants, growing of
5261: Retail Nurseries, Lawn and Garden Supply Stores
Division G: Retail Trade | Major Group 52: Building Materials, Hardware, Garden Supply, And Mobile Home Dealers | Industry Group 526: Retail Nurseries, Lawn And Garden Supply Stores
5261 Retail Nurseries, Lawn and Garden Supply Stores: Establishments primarily engaged in selling trees, shrubs, other plants, seeds, bulbs, mulches, soil conditioners, fertilizers, pesticides, garden tools, and other garden supplies to the general public. These establishments primarily sell products purchased from others, but may sell some plants which they grow themselves. Establishments primarily engaged in growing trees (except Christmas trees), shrubs, other plants, seeds, and bulbs are classified in Agriculture, Major Group 01 and those growing Christmas trees are classified in Industry 0811.
- Christmas trees (natural)-retail
- Garden supplies and tools-retail
- Nursery stock, seeds and bulbs-retail
- Power mowers-retail
- Soil, top-retail
Nursery And Greenhouse Insurance - The Bottom Line
You should also consider a business policy or BOP (business owner's insurance policy) for your retail or wholesale nursery or greenhouse. This policy bundles general liability and certain commercial property coverages.
Additional Resources For Agribusiness Insurance
Learn about small business agribusiness insurance - a type of commercial insurance protects farmers against loss of, or damage to crops or livestock.
- Insurance Farming Terms Glossary
- Aquaculture Fish Farm
- Commercial Fishermen
- Dairy Farm
- Equine & Horse Farm
- Farm And Ranch
- Farm Equipment Dealers
- Farm Labor Contractors
- Livestock & Cattle
- Mushroom Farms
- Nursery And Greenhouse
- Nut Farm
- Orchards & Groves
- Poultry Farm
- Sheep & Goat Farm
- Swine, Hog & Pig Farm
- Tobacco Farm
- Specialty Farm Risks
The agribusiness industry is a vital sector of the global economy, providing food, fiber, and other essential products to people around the world. However, it is also a complex and risky industry, with many potential sources of loss and damage. This is why the agribusiness industry needs commercial insurance.
One major risk in the agribusiness industry is natural disasters, such as floods, droughts, and hurricanes. These events can devastate crops and livestock, leading to significant financial losses for farmers and other agribusiness owners. Business insurance can help protect against these losses, providing a financial cushion to help businesses recover and continue operating.
Another risk in the agribusiness industry is the potential for accidents or injuries on the farm. Farming can be a dangerous occupation, and accidents can occur while working with heavy machinery or handling animals. Insurance can help cover the costs of medical treatment, lost wages, and other expenses related to these accidents.
In addition to these risks, the agribusiness industry is subject to various legal and regulatory requirements, such as food safety standards and environmental regulations. Noncompliance with these requirements can result in costly fines and legal action. Insurance can help cover the costs of legal fees and settlements, protecting businesses from financial ruin.
Overall, the agribusiness industry needs insurance to protect against the various risks and challenges it faces. Without commercial insurance, businesses in this industry would be vulnerable to financial losses that could threaten their survival. By investing in insurance, agribusiness owners can safeguard their businesses and ensure their continued success.
Minimum recommended small business insurance coverage: Buildings, Business Personal Property, Crop Insurance, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Mobile Equipment, Valuable Papers and Records, General Liability, Environmental Impairment, Umbrella, Business Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Business Income and Extra Expense, Earthquake, Equipment Breakdown, Farm Owners, Flood, Computer Fraud, Employee Dishonesty, Forgery, Money and Securities, Cyber Liability, Employee Benefits, Employment-related Practices Liability, Product Recall, Underground Storage Tank, Stop Gap Liability and Unmanned Aerial Vehicles (UAV) (Drones).