Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a community garden.
This article will discuss the primary insurance coverage for community gardens, general liability insurance, as well as additional policies that are appropriate for this industry.
Community Garden General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
GENERAL LIABILITY INSURANCE MAY COVER COMMON SITUATIONS FOR A COMMUNITY GARDEN
Example 1: Your customer gardeners are unintentionally exposed to dangerous compounds in the soil, resulting in a variety of illnesses over time. Their medical expenditures should be covered by general liability insurance.
Example 2: A client gardener slips over a boulder and fractures his leg after an employee fails to properly clear a passage through the garden. The expense of litigating the subsequent litigation or settling out of court would be covered by general liability insurance.
Example 3: A client gardener inadvertently damages a precious piece of communal garden land. General liability insurance would contribute to the cost of restoring the land to its previous condition.
Example 4: Your community garden offers services comparable to another nearby garden with a similar name. If the other garden sues you for copyright infringement, your legal expenses and any awarded damages would be covered by general liability insurance.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
Community gardens in the United States pay an average of $400 to $1500 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Community Gardens
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all community gardens should purchase are listed below.
Insurance for Commercial Property
The most critical aspect of any community garden is your land. Storms, vandalism, and fires would be mitigated by commercial property insurance. This coverage would also cover the cost of repairing or replacing any damaged greenhouses or tool sheds on your property after an accident, allowing you to recover as swiftly as possible.
Insurance for Business Interruption
A community garden, which is more exposed to the weather than other companies, may need to shut for weeks or even months to restore after a fire or significant storm. Business interruption insurance would assist cover part of your missed income, preventing you from going out of business before you could reopen.
Insurance for Workers’ Compensation
Workers’ compensation insurance is required in most states for both part-time and full-time employees. This coverage covers your workers if they are hurt at work or get sick as a result of a work-related accident, including chronic ailments such muscular soreness from stooping, bending, and kneeling. It covers not just an employee’s medical expenditures and missed pay if they need time off to recuperate, but also any disability or death benefits resulting from a work-related accident.
Coverage Options for Some Community Gardens
In addition to the policies listed above, your community garden may need other forms of coverage based on particular elements of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Umbrella Insurance for Businesses
Depending on the tools and equipment your client gardeners use, community gardens might offer a number of potential dangers. While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.
Insurance for Commercial Vehicles
Any vehicle used mainly for business by you or your workers, such as transporting plants or tools, needs commercial car insurance to safeguard the vehicle, driver, and others on the road in the case of an accident. Choose a policy that not only covers accident-related vehicle repair expenses and medical care for anybody harmed, but also provides enough coverage for any business-related equipm
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.