As a horticultural business owner, you face unique risks that can disrupt your operations. That's why it's crucial to have insurance coverage that addresses those risks and situations. Not only can a customized insurance plan help you mitigate losses, but risk-relevant coverages can help you avoid business interruptions and paying for insurance options that aren’t relevant to your company.
6 key risk areas for horticultural businesses
Which risks directly correlate to your operations? Once you identify your primary risk concerns, work with your insurance provider to select coverage options that will help provide the best protection.
We’ve identified six top risk areas facing horticultural businesses, along with corresponding insurance coverages to protect against those risks.
1. Property damage
Commercial property insurance is designed to help protect you from losses caused by property damage. Commercial property coverage not only applies to your buildings and greenhouses, but also your crops and equipment stored inside (e.g., boilers, generators, coolers, benching systems, irrigation equipment, heat retention curtain systems, and environmental control computers).
2. Auto accidents
Auto accidents involving company vehicles or personal vehicles driven for business purposes are a major issue. Costs related to injuries, vehicle repairs, supply chain issues, and labor shortages continue to rise.
Commercial auto insurance can help cover losses related to accidents that happen when you’re using a vehicle for your business—whether owned, rented, or leased. Much like your personal auto insurance, this coverage can help protect you from unexpected expenses, including:
Bodily injuries
Property damage
Collison/comprehensive repair
Uninsured/underinsured motorists
Medical payments
Commercial auto insurance is required in almost every state. Even in the states where it isn’t required, drivers can still be held liable for damages
3. Customer injuries
Hoses left in walkways. Hanging baskets positioned at eye level. Slippery surfaces in areas where you water. All of these scenarios could lead to customer injuries.
Safeguard your business against customer injuries and potential lawsuits with general liability insurance.
If you’re looking for additional coverage in this area, an umbrella policy can help protect your business against catastrophic liability loss or a major judgment against you or your company.
4. Employee injuries
Slips and falls, strains, and exposure to hazardous chemicals are just some of the potential on-the-job risks your employees face. A proactive safety program at your workplace can help reduce those risks. But accidents still happen.
Workers’ compensation coverage can help cover medical expenses, lost wages, and rehabilitation costs when a worker is injured in the scope of their employment.
5. Cyberattacks
Ransomware, data breaches, and phishing scams can immobilize your network and make your personal data—and that of your customers and vendors—vulnerable.
While there are ways to help prevent a cyberattack, cyber liability insurance helps cover losses if such an event does occur, including:
Damaged equipment
Revenue lost during downtime
Possible regulatory fines
Cost of customer notifications
Cost to recover compromised data
Ransomware compensation
6. Errors and omissions
Good-faith work can sometimes lead to unintended, unwanted consequences. For example, a landscaping project your company develops leads to flooding in your customer's basement.
Professional liability insurance—also known as errors and omissions insurance—is important in times like these. It helps protect you from claims of negligence, errors, or mistakes related to your work.
Take a risk-relevant insurance approach
When designing your insurance plan, conduct a comprehensive risk assessment of your business. Identify potential threats and evaluate their likelihood and impact.
Once you have coverage in place that corresponds to those risks, regularly review and update your coverage as your business evolves and risks change.
By adopting a risk-relevant insurance approach, you can significantly enhance the long-term sustainability of your horticultural business. If you'd like to review your business policy with a qualified insurance agent, contact us. We’re here to help you and your business.
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