Greenhouse Business Insurance
Getting business insurance for your greenhouse is essential.
Having insurance coverage is crucial. Insurance can safeguard a business from an array of risks, such as liability for bodily harm, property damage, and financial loss.
For example, a greenhouse could be affected by a strange disease that destroys many plants. Thankfully, if such a scenario should develop, there would be insurance to deal with it.
We’ll help you find the most personalized and affordable coverage for your unique business.
Best Insurance for a Greenhouse Business
General liability insurance is — generally speaking — one of the most important insurance policies for greenhouse businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While general liability insurance provides coverage for numerous risks, it may not be sufficient to cover all the risks that your business faces. To address these additional risks, special policies such as those that offer specific protections may be necessary:
- Commercial property coverage: This type of insurance provides coverage for any damage to the greenhouse property or equipment due to natural disasters such as fire, flood, or storm.
- Crop Insurance: Greenhouse businesses can suffer significant financial loss due to crop damage that results from pest infestations, disease outbreaks, or severe weather conditions. Crop insurance provides coverage against these risks and helps protect against financial losses.
- Workers' Compensation Insurance: Greenhouse businesses may require workers' compensation insurance to cover the medical expenses and lost wages of employees who suffer work-related injuries or illnesses. This insurance is typically mandatory in most states.
When you have decided the types of insurance your business needs, the next step is choosing where to get it. In general, there are two types of insurers:
- Traditional brick-and-mortar insurers: These insurers, such as Farmers and The Hartford, generally offer products that have been around for decades. They may move slowly in developing new products and their premiums tend to be higher.
- Online insurers: Insurtechs, like Clearcover and Next, are generally more nimble and agile than traditional insurers, allowing them to quickly develop and launch innovative products that meet changing customer needs. With online insurers, lower overhead results in lower premiums.
Cost of General Liability Insurance
On average, greenhouse businesses in America spend between $400 - $1500 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a greenhouse business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
Common Situations That General Liability Insurance May Cover for a Greenhouse Business
Example 1: As an employee loads bags of soil into a customer’s car, they accidentally drop a bag. The bag knocks the customer to the ground, where she hits her head and then needs medical attention for a possible concussion. General liability insurance would cover her medical bills.
Example 2: Right after you water the plants, a customer’s child runs through the greenhouse, slips in a puddle, and suffers an injury. His mother decides to sue your greenhouse. General liability insurance would pay for your legal fees and any settlement, if necessary.
Example 3: You lose control of a cart while moving heavy pots filled with plants, and the cart hits a customer’s car. General liability insurance would cover the customer’s vehicle repair costs.
Other Types of Coverage Greenhouse Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Commercial Property Insurance
Setting up your greenhouse required a major investment in plants, soil, amendments, pots, tools, and other supplies. If you own the building(s) in which you operate, you’re responsible for all business-related property housed there in the event of a fire, burglary, or natural disaster. Commercial property insurance would cover the cost of repairing or replacing your business building(s) and supplies after an accident so you can recover quickly.
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover, but also any disability or death benefits stemming from a work-related accident.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Commercial Auto Insurance
Any vehicle you or your employees use primarily for business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured, but also sufficient protection for any business equipment or supplies you carry in your vehicles.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your greenhouse business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Greenhouse Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
Yes. It’s certainly desirable to have business insurance coverage even during the setup phase of your business. Many of the risks that generally plague a business are present before the business actually begins to operate. In any event, certain types of insurance may be compulsory. There are penalties for failing to have such policies.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.