Operating a horticultural business comes with distinctive challenges and risks, such as weather-related crop damage or potential harm arising from plants or products. To mitigate these industry-specific risks, many horticultural business owners opt for specialized insurance tailored to their business needs. However, some owners may still have reservations.
Regrettably, concerns regarding specialized insurance have given rise to myths, misconceptions, and misinformation, particularly related to:
Pricing
Policy complexity
Provider credibility
We’ll debunk the myths surrounding these topics and unveil the genuine advantages of customized horticultural insurance for your business.
Myth 1: Horticultural insurance is more expensive than standard business insurance
Debunked:
This is a common misconception. Opting for a standard insurance company over a horticultural-specific one can seem like a cost-effective choice, but the standard provider may lack the specialized protection needed for the horticultural industry—potentially impacting your bottom line.
There are numerous provider options, from local agencies to global conglomerates. Evaluate the cost of coverage against the protection offered. Sometimes, specialized insurers can offer competitive rates while providing more comprehensive coverage. Specialized insurers may also offer discounts and packages specific to the industry, making them a cost-effective option.
Myth 2: Horticultural insurance only covers plants and crops
Debunked:
While crop insurance is a significant component, horticultural insurance can encompass a broader range of aspects in the industry. This may include coverage for property and equipment, liability protection for potential injuries or harm caused by products, business interruption, pollution liability (if chemicals are used), and more.
Horticultural insurance is designed to address the diverse risks associated with horticultural businesses, making it a comprehensive choice for safeguarding your entire operation. An experienced insurance professional can assess your specific risks and ensure you have the right coverages in place, including:
Commercial property
You can customize your commercial property insurance coverage based on your buildings, equipment, inventory, income, and other exposures.
Commercial auto
Commercial auto insurance can help cover losses related to accidents that happen when you're using a vehicle for your business.
General liability
Liability insurance can help you protect your business if someone is injured at your location, or if you sell a product that is defective and causes injury or property damage.
Professional liability
Protect your business from executive risks, errors and omissions claims, and guarantee bonds.
Workers' compensation
Workers’ compensation coverage can help cover medical and related expenses for your employees who are injured while working.
Umbrella coverage
It provides an extra layer of coverage that can help protect your business in the event of a catastrophic liability loss or a major judgment against you or your company.
Myth 3: Horticultural insurance is too complex and hard to understand
Debunked:
Like any insurance, the complexity of horticultural insurance can vary depending on your specific operation and the insurer you choose. While horticultural insurance may seem specialized, it doesn't have to be overly complicated. With a qualified insurance advisor or agent specializing in the horticultural industry, you can navigate the process effectively. They will help you understand your unique risks and tailor a policy that suits your specific needs, making it as straightforward as possible.
Keep in mind, the goal of insurance is to provide you with confidence and financial protection. No matter what insurance company you choose, carefully read through your policy. Ask questions if you don’t understand something. The answers you receive and the manner in which you receive them will also help you decide which company to trust your business with in the future.
Secure your crops and assets with our full range of horticultural insurance services—including safety checks for your business.
Myth 4: Standard business insurance covers all horticultural risks
Debunked:
Standard business insurance policies typically don’t provide coverage for all the distinctive risks associated with horticultural businesses. Standard insurance is designed to offer basic coverage for general business operations. Horticultural operations face specific vulnerabilities, including:
Crop losses
Property damage due to weather conditions
Liability related to chemical usage
Potential harm arising from plants or products
To help ensure adequate protection for your horticultural business, it’s important to explore specialized horticultural insurance options to effectively manage industry-specific risks. Seek guidance from experienced insurance professionals who are knowledgeable about the intricacies of the horticultural field. They can help you identify and secure applicable coverages for your business.
Myth 5: Horticultural insurance companies are less reliable than standard insurers
Debunked:
The reliability of an insurer, whether standard or specialized, depends on various factors, and there’s no one-size-fits-all answer. Reliability in insurance can be assessed based on several criteria:
Industry knowledge
Specialized insurers, like those focused on horticulture, often have a deeper understanding of the unique risks and needs of your specific business. This can make them more reliable in providing tailored coverage.
Coverage specificity
Specialized insurers tend to offer policies that are designed explicitly for your industry, potentially reducing coverage gaps and ensuring your protection aligns with your business's unique requirements and goals.
Claims handling
The reliability of an insurer can also be judged by their track record in handling claims promptly and fairly. Research customer reviews and industry ratings to gauge this aspect.
Financial strength
Assess the financial stability of the insurer by reviewing their credit ratings and financial reports. This will give you an idea of their ability to fulfill claims, especially in challenging situations.
Customer service
Consider the quality of customer service offered by the insurer. Reliable insurers should be responsive to your inquiries and concerns.
Benefit of a specialized insurance provider
Horticulture is unique field within a flourishing industry, and not everyone knows what it takes for your business to grow and thrive. But your business insurance provider absolutely should.
A specialized insurer understands the ins and outs of the industry they serve. This focus creates advantages for the insured including a depth of industry-specific expertise, customized coverages for your specific business, access to a network of professionals across the country, and superior claims support.
Hortica® is a brand of the Sentry Insurance Group. Since 1887, we've helped protect horticultural businesses like yours across the United States. Our agents are dedicated solely to supporting and protecting horticultural businesses. We'll help protect you, your business, and your employees.
Learn more about our customized coverages and why specialized insurance makes the most sense for your business.
Request a quote, email us, or give us a call at 800-541-5082 to speak with one of our knowledgeable representatives.
Make safety a top priority at your garden center
Five claim scenarios that’ll make you hug your liability policy
Your greenhouse maintenance checklist
The information in this article is for informational or entertainment purposes only. View our disclaimer by going to terms and conditions and clicking on Learning Center disclaimer in the table of contents.