Insurance for Florists

Florists sell flowers, flower arrangements, planters, related items, gifts and novelties. While customers may select and pick up flowers at the shop, most orders are taken over the phone or internet with shops providing delivery service for their customers. Peak holidays include Valentine’s Day and Mother’s Day.

Recommended Insurance Programs for Flower Shops

Minimum recommended coverage:

• General Liability
• Property Insurance
• Hired and Non-Owned Auto (full commercial auto if vehicles owned)
• Business Income with Extra Expense
• Workers Compensation

Other coverages to consider for Florists:
Data Breach (Cyber liability), Business Personal Property, Business Income, Spoilage, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, EPLI and Umbrella Coverage.

Common Risks and Needs Associated with Flower Shops

General Liability Insurance
GL exposures for premises liability come from slips and falls due to public access to the premises. Water on the floor due to watering of plants or spilling of vases is common and must be attended to quickly to avoid slips and falls. Floor coverings should be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure.

Parking lots and sidewalks need to be in good repair with snow and ice removed, as well as generally level and free of exposure to slips and falls. If the business is open after dark, there should be adequate lighting and appropriate security for the area.

Delivery service to customers’ premises could result in property damage losses should the driver destroy property belonging to the customer.

GL risks for products liability is normally low. Plants with poisonous properties should have warnings to the consumer.

Property Insurance
Business property risks are moderate for most flower shops. Power outages of refrigeration equipment can result in high spoilage losses. Equipment should be maintained on a regular basis, with backup generators available. Due to seasonal fluctuations, values must be carefully reviewed and anticipated from a property insurance coverage standpoint.

Flower shops generally sell live or growing plants, shrubs, bushes, trees and flowers. These items may be protected in a structure such as a greenhouse, or outside exposed to loss from wind, rain or other natural elements. These structures may not be designed to withstand the forces of nature. Older greenhouses may be made of glass, subject to frequent breakage. Newer greenhouses are simply frames with plastic coverings, which need frequent replacement as they tend to yellow or cloud in the weather and block out necessary sunlight. Special programs and coverages are available to protect the structures and the growing plants or crops within.

Due to sales dependency on Valentine’s Day and Mother’s Day, even a small loss occurring right before these peak holidays could result in a large business interruption claim.

Commercial Auto
Automobile exposure is generally significant since delivery is a normal part of this operation. Although flower shops do not typically guarantee delivery times; peak seasons, such as Mother’s Day and Valentine’s Day, can substantially increase the volume, which can put pressure on drivers to drive more recklessly. All delivery drivers should have acceptable MVRs that are checked regularly. Vehicles should be regularly maintained with documented records in case of an accident or claim.

Commercial Crime Policy
The risk of commercial crime stems from employee dishonesty and theft of money either from hold-up or safe burglary. Background checks should be conducted on all employees handling money. There should also be separation of duties between persons handling deposits and disbursements and handling bank reconciliations. Money should be regularly collected from cash drawers and moved away from the collection area, preferably to a safe on premises. Bank drops should be made throughout the day to prevent a buildup of cash on the premises. Delivery drivers should not collect money whenever possible.

Workers Compensation
Workers compensation claims typically derive from lifting which can cause back injury, hernias, sprains and strains from slips and falls, as well as injuries from cuts and punctures. Employees should be provided with safety equipment, trained on proper handling techniques and have assistive devices available to assist with heavy lifting. Employees making deliveries are exposed to road and traffic hazards, and may carry heavy and awkward plants and arrangements through congested areas. In any retail business, hold-ups occur. Employees should be trained to respond in a prescribed manner.

Liability Quotes for Flower Shops

General Liability Shop.com offers low cost liability insurance quotes for Flower Shops throughout the U.S. Our Florist programs include all lines of business insurance, as well as our Target programs for business owners policies (BOPs). Contact one of our business insurance Specialists today at 800-900-8657, or start a quote online now.

Small Business Liability Class Codes for Florists

Commercial insurance companies use various liability classification systems in order to classify and rate coverage premiums for Flower Shops. Here are the most common business insurance classifications for Florists:

Business Liability Category: Retail Stores- Flowers

SIC Business Insurance Codes:

• 5992: Florists
• 5992: Flowers, Nursery Stock and Florist Supplies

NAICS Liability Classifications:

• 453110: Florists and Flower Shops
• 453998: Other Miscellaneous Retail Stores

Business Insurance ISO General Liability:

• 12841: Florists

Common Workers Compensation Class Codes:

• 8001: Retail Flower Shops and Drivers