Wholesale florists fulfill orders from retail florists for all types of flowers and floral supplies. Your inventory is by nature delicate, with a limited shelf life, requiring a great deal of care to avoid damage or spoilage.
Some wholesale florists work from a single facility and do not grow their own products, while others may operate a greenhouse in addition to a traditional wholesale flower shop.
Your wholesale flower shop faces serious risks that can send your dreams and your business up in smoke. Whether a customer trips and falls on your premises or your inventory is destroyed in some way, you need wholesale flower shop insurance to ensure that you’re protected from the many risk exposures that you face every day.
Why Do You Need Wholesale Flower Shop Insurance?
Your wholesale flower shop is exposed to a variety of unique risks that must be addressed with tailored business insurance policies.
You need protection for:
- Loss of flowers and other plants
- Loss of floral supply inventory
- Destruction or breakdown of buildings, equipment, fixtures, and other commercial property
- Customer injuries on your premises or as a result of one of your products
- Employee injuries
- Auto accidents involving your vehicle fleet
For these reasons—and because of many other unfortunate circumstances that can occur—you need wholesale flower shop insurance to protect your assets.
What Does Property Insurance Cover?
Wholesale flower shop insurance should be tailored to the unique risks faced by your business.
First, consider the risk to your building or business property caused by unexpected events like fires, lightning, tornadoes, wind, and hail. And be sure to address the significant risks to your delicate inventory.
You’re likely to need to purchase property insurance that is specifically designed for businesses in the agricultural or horticultural industry. Your commercial property insurance should cover your buildings, greenhouses, equipment, and inventory when they are damaged by fire, severe weather, vandalism, and certain other unexpected events.
What’s more, your commercial property insurance should include spoilage coverage, which protects against the loss of perishable products due to an equipment breakdown (e.g., refrigeration breakdown) or a utility interruption (breakdown of power or communication services).
You probably also need equipment breakdown coverage, which covers loss of income and repair costs when your essential equipment (e.g., refrigeration equipment, boilers, generators, irrigation equipment, and so on) breaks down and hinders your ability to operate or function.
Finally, your wholesale flower shop property insurance should include business interruption insurance, which reimburses you for lost income and pays for certain fixed expenses (e.g., salaries, rents, etc.) if a covered event (e.g., fire, windstorm, hail) forces you to close to make repairs and replace lost inventory.
What Does Liability Insurance Cover?
Wholesale flower shops can also be accused of negligence and sued at any time. These are typically cases where someone is harmed on your premises, your business is responsible for some kind of property damage, or someone is harmed because of one of your products.
Commercial general liability (CGL) insurance offers broad coverage for a wide range of liability claims. Your wholesale flower shop liability insurance may need to be further customized to include any unique risks that you face.
In general, your CGL policy will cover:
- Bodily injury claims for which you are responsible
- Property damage claims for which you are responsible
- Product liability and completed operations claims for which you are responsible (bodily injury or property damage caused by your products or your work)
- Personal injury claims or advertising injury claims
If you have a greenhouse and grow your own products, you have some additional liability risks. Be sure to talk to your independent insurance agent about your need for:
- Environmental liability insurance (e.g., chemicals you spray on your flowers drift to the neighboring area and injure people or cause property damage)
Do You Need Commercial Vehicle Insurance for Your Wholesale Flower Shop?
Many wholesale flower shops deliver orders to local retail florists using one truck or a fleet of delivery vehicles. If you operate delivery vehicles, you need commercial vehicle insurance to cover physical damage to them as well as your legal responsibilities to anyone who is harmed by them.
Commercial vehicle insurance provides liability, collision, comprehensive, personal injury and uninsured motorist coverage for your commercial vehicles. While similar to personal auto insurance, commercial auto insurance is priced differently and is designed for different situations.
Your commercial auto insurance is based on how your vehicles are used in your business and who will be driving them. Whether you lease or own your business autos, and whether you or your employees will be driving personal vehicles for business purposes, also have an impact on what type of business auto coverage you need.
Each vehicle owned by the business or used for business purposes can be listed separately on your commercial vehicle policy, with corresponding coverage for each vehicle that can differ depending on the vehicle’s characteristics and the coverage it requires.
How to Avoid Gaps in Your Wholesale Flower Shop Insurance Coverage
Most wholesale flower shops will need more coverage than what is included in basic property and liability policies. Your independent insurance agent can help you decide what types of coverage you need to avoid any gaps in your protection.
You might want to consider the following types of coverage:
- Commercial umbrella insurance provides excess liability protection to any of several other policies you might have. If a customer injury in your warehouse or greenhouse leads to an expensive lawsuit that exceeds the limits of your commercial general liability policy, your commercial umbrella policy kicks in with higher coverage limits.
- Workers’ compensation insurance is typically required for any business that has employees. It pays for lost income and medical expenses for employees who are injured on the job. If a worker sustains a severe hand laceration in the warehouse, or a greenhouse employee has a severe reaction to a pesticide, workers’ compensation insurance pays for related medical costs and compensates the employee for time away from work.
- Crime coverage protects your business if an employee or a group of employees engage in theft, forgery, or fraud that damages your business.It also offers coverage in cases of shoplifting and vandalism.
- Sign coverage pays for damage to outdoor signs that are not attached to your building when the damage is caused by weather, vandalism, fire, etc.
How Much Does Wholesale Flower Shop Insurance Cost?
Insurance costs are hard to predict for any business, because every business is unique.
Your costs will depend on the type of coverage you need and the coverage limits you require to adequately protect your commercial property and the liability risks that you face.
Insurance companies that specialize in agricultural or horticultural businesses will evaluate your unique characteristics, including:
- The location of your shop, warehouse, or greenhouse
- The value of your inventory and the particular risks to it
- Whether you own your building
- Whether you operate a retail location, a warehouse, a greenhouse, or all of them
- The number of employees
- The crime and weather risks in your area
These factors will determine your cost for coverage.
Find and Compare Quotes
An independent insurance agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Independent insurance agents simplify the search process for finding the right wholesale flower shop insurance. They’ll walk you through handpicked policy options and explain the details and options.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get—but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can leave out important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
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