Orchard Business Insurance
Getting insurance for your orchard business is essential.
Orchard businesses need to be protected against claims arising from things like product liability, contractual breaches, and professional negligence.
For example, your business could be sued for breach of contract if a supplier decides you broke the terms of their agreement.
We’ll help you find the most personalized and affordable coverage for your unique business.
Best Insurance for an Orchard Business
General liability insurance is — generally speaking — one of the most important insurance policies for orchard businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Running an orchard involves a number of inherent risks that general liability insurance doesn't cover. As a result, consider supplementing with other types of policies, such as:
- Workers’ compensation insurance: Ensures that employees are compensated adequately if they get sick or injured at work.
- Commercial auto insurance: Covers any property damage or personal injury caused by vehicles used primarily for your orchard business.
- Commercial umbrella insurance: Protects your business from having to pay legal fees and damages that exceed general liability insurance limits.
To choose the best insurer for your orchard business, first decide which of the two main types best fits your needs:
- Traditional brick-and-mortar insurers — Such as Hiscox and Nationwide. Describes insurers with a physical store.
- Online insurers — Such as Tivly and Next. Describes insurers that base themselves entirely online.
We recommend online insurers for most small businesses. They’re cheaper than traditional insurers because they have lower overhead, and they’re faster and more flexible as well.
Cost of General Liability Insurance
The average orchard in America spends between $400-$1,500 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for an orchard 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 an Orchard Business
Example 1: You hire a web designer to put together your orchard’s new website. One of the images he uses was protected under copyright. The photographer who claims ownership of the photo sues the business for copyright infringement. General liability insurance should cover your legal fees and any resulting payout.
Example 2: It is discovered that one batch of the orchard’s products distributed throughout the state has been linked to an E. coli breakout. Two of the customers that fell ill were hospitalized, accumulating over $200,000 in medical bills, and are suing the orchard. Your general liability coverage should pay for legal representation as well as the payout awarded by the courts for medical and personal damages.
Example 3: You are hosting a tasting party at the orchard, and one of the customers breaks a glass and cuts their finger. Their trip to the emergency room for stitches cost over $5,000. General liability insurance should cover their medical bills and any aftercare costs stemming from this injury.
Other Types of Coverage Orchard 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 Auto Insurance
If your business offers delivery services, or you use a vehicle for other work-related purposes, you will need to carry the state-mandated levels of commercial auto insurance on each of the vehicles in your fleet. A commercial auto insurance policy covers business-owned automobiles that are driven on public roadways.
Commercial auto insurance is often purchased as part of a business owner’s policy (BOP).
Commercial Property Insurance
If you own the building and business property used by the orchard, it is important that you properly cover yourself against a potential loss. Agricultural businesses require a lot of expensive, specialized equipment. Before taking out an insurance policy, carefully consider the cost to replace all business property as well as what it would cost to rebuild in the event of a total loss.
This coverage is often available as part of a BOP.
Workers’ Compensation Insurance
Orchards require a lot of hands-on work, so you likely have a team of employees. If this is the case, the state likely requires you to carry workers’ compensation insurance on all full- and part-time employees.
Workers’ compensation covers employees for on-the-job accidents and injuries. While most states allow business owners to exempt themselves from coverage, owners who contribute directly to the day-to-day operations of the business typically choose to include themselves on their workers’ compensation policy.
Workers’ compensation is generally purchased as a standalone policy.
Commercial Umbrella Insurance
Since some liability risks can exceed primary policy limits, a commercial umbrella liability policy should be considered. It offers an extra layer of protection in the event that a large covered lawsuit occurs.
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 orchard 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.
Orchard 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.
Before they open their doors, orchard businesses need business insurance. Even if certain policies aren’t a legal requirement – and workers’ compensation and commercial auto often are – some form of insurance is highly recommended to protect you from unaffordable liabilities.
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.