Business Insurance Needs for Florists
Published: April 2014
As a professional florist, you have specialized business insurance needs that differ from other small businesses. You face risks such as the safety of customers visiting your shop, weather-related mishaps that might delay or damage important orders, damage or theft of your business vehicles, and other challenges.
Whether it's your first time buying business insurance, or you're updating your existing policy, here are some key business insurance coverages to consider.
General liability coverage: This type of coverage helps protect your florist shop in case of an accident. Perhaps a customer is injured when she trips on the way into your shop to pick up her order. Or, what if a vendor is accidentally nicked by one of your cutting tools while making a delivery? Protect your business in these types of scenarios, and in the event of a negligence lawsuit or accident claim, general liability coverage may help protect your business.
Professional liability coverage: Suppose a customer claims you ruined his expensive wedding by delivering the wrong floral order. According to the Small Business Administration, professional liability coverage, also known as "errors and omissions" insurance, may help protect your business in similar cases.
Business property coverage: Your refrigeration cases and containers, floral stock, and business computers are just a few examples of equipment that can be expensive to repair or replace if they're damaged or stolen. Business property coverage may help you recover the cost of equipment in the case of a covered loss, such as theft or a fire. The covered causes of loss are typically listed in you policy.
Data compromise coverage: Computer hackers are increasingly targeting small businesses, according to the National Federation of Independent Businesses (NFIB). If you store customer payment information or employees' personal details on your business computer, in addition to creating a written identity theft protection program for your business, as the Society of American Florists (SAF) recommends, this coverage may offer crucial protection in case of a data loss.
Business interruption coverage: This type of coverage goes beyond protecting just the physical assets of your shop (such as inventory, equipment, etc.) and provides income replacement if you're unable to fill orders and keep your business running due to a covered loss. For example, if your business is destroyed by a tornado, business interruption coverage may help to replace your lost income while you rebuild. This type of coverage may also help to reimburse you for worker salaries during a business outage.
Employment practices liability coverage: This coverage helps protect your company from lawsuits by employees and former employees. The types of claims that fall under this coverage may range from sexual harassment to wrongful termination. A small business with even one employee (other than the owner) may want to consider this critical coverage.
Business auto coverage: As a florist, your delivery van is vital to your business—so it's important to make sure it's protected. Business auto coverage can help protect your van—or other vehicles you use for business purposes—in case of accidents, vandalism, theft, or other mishaps. It may also help you recover the loss of inventory inside the vehicle, cover emergency medical expenses for those involved in an accident with the business vehicle, and protect you against uninsured motorists. (Talk to your agent or look at your specific policy to make sure what your auto policy covers.)
Of course, no two floral businesses are exactly alike. To customize your insurance coverage for your particular shop, talk to your business insurance agent.