Flower shops can be found all over the United States. Whether catering to brides, prom goers, or people celebrating anniversaries, these stores provide a much sought-after service. If you own a florist shop, you will want to be sure to protect your investment with a sound business insurance package. An independent agent can help you build a flower shop insurance policy that can cover your business from everyday risks.
2014 Florist Shop Industry Facts From IBISWorld
- There are approximately 30,000 flower shops operating in the United States.
- These stores employ more than 80,000 people.
- The floral industry is responsible for about $6 billion in revenue each year.
What Could Go Wrong at a Florist Shop?
Flower shops are not high-risk businesses, but there are some exposures that business owners should be aware of so that they can ensure they have the proper coverage before the damage is done. For example, what happens if the refrigeration that keeps your flowers healthy and vibrant goes out? Or what if an employee is involved in a major collision while delivering flowers to one of your customers? These and other concerns should be addressed when building your florist insurance policy.
You Need Sufficient Property Damage Coverage
Commercial insurance policies, by design, provide coverage against property damage. However, there are some risks that may not be addressed by your insurance coverage unless you purchase additional endorsements or supplemental policies.
One endorsement you may wish to purchase is called spoilage coverage. This feature is built into many commercial insurance policies, but you need to specifically request it in order to have the coverage. Spoilage insurance covers losses you may incur due to an extended power outage or other failure of your refrigeration unit to properly keep your flowers at an ideal temperature. If your entire inventory is lost due to spoilage, this coverage is likely to provide you with compensation. A standard spoilage insurance endorsement will cover up to $50 thousand in damages, which should be sufficient for a flower shop. If, however, more coverage is needed, your independent agent can help you obtain it.
You may also want to strongly consider purchasing a commercial flood insurance policy through the NFIP. Floods can cause a great deal of expensive damage to your building and to the contents kept within it, but a standard commercial policy will exclude coverage for this sort of damage. When you purchase a commercial flood insurance policy, you can choose to insure the building only, the contents only or both. Your agent can help you obtain a policy.
Does Your Flower Shop Deliver?
If your flower shop offers delivery services, it is extremely important that you carry the proper insurance coverage to protect your drivers as well as your vehicles and business. There are three categories of auto insurance you should be familiar with. These include the following:
- Commercial Auto Insurance: This is required if you have any business-owned vehicles. Your insurance company will most likely demand a list of all authorized drivers and may refuse coverage for drivers with a poor driving history. Commercial auto insurance provides coverage for the vehicle as well as liability coverage if an authorized driver is in a collision while driving a company-owned vehicle.
- For-Hire Auto Insurance: This provides an extra measure of liability protection if you rent delivery vehicles or if you hire an outside service to do your deliveries for you. It provides coverage for your business and your employees while they drive a rented, borrowed or hired vehicle for business purposes.
- Non-Owned Auto Insurance: You will need this if your delivery drivers are using their own vehicles to do company business. Their personal auto insurance policies may or may not exclude liability coverage if they are involved in a collision while making a delivery, and your business may end up sued for damages. Non-owned coverage provides your business with liability coverage in this instance.
What Are Some Other Concerns Faced by Florist Shops?
A final concern unique to florist stores is the possibility of employee injuries or illnesses while tending to the flowers. If an employee suffers an allergic reaction to one of your plants, injuries while cutting stems or a sickness by inhaling fumes from insecticides or certain fertilizers, you are responsible for providing their medical care.
Fortunately, workers’ compensation insurance provides this coverage. Employers in most states are required to carry this coverage, while in a few states it is optional. Either way, it is strongly recommended, as medical costs can be quite expensive.
What Other Florist Shop Insurance Coverage Do You Need?
In addition to the property and liability coverage mentioned above, you may have to get or at least consider other insurance coverage types. They are the following:
- Business Income Insurance: This coverage provides your floral shop with a continuation of income in the event that a major disaster forces you to close down for an extended period. Coverage typically lasts until you are able to resume normal business operations, up to 12 months.
- Employment Practices Liability Insurance: This provides coverage for your legal defense fees and potential punitive damages in the event that one of your employees sues your business for sexual harassment, discrimination or any other illegal business practice.
- Employee Dishonesty Insurance: This protects your business from loss in the event that one of your employees steals from your business or engages in other illegal behavior while on the job.
There may be additional types of insurance that are a good fit for your specific business. Your independent insurance agent can help you realize your different exposures and can help you find appropriate coverage to mitigate those risks.
Get Help Building a Strong Florist Shop Insurance Policy
Purchasing business insurance for your flower store can be a complex process, especially if you are buying business insurance for the first time. This is why it is to your benefit to work with an independent agent in the Trusted Choice® network. Not only can these agents help you determine your risks, but they can also help you find competitively priced coverage that will provide the coverage you need. Find a Trusted Choice agent near you to learn more. You can soon start comparing quotes on a florist insurance policy designed specifically for your business.