Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a herb farm.
This article will discuss the primary insurance coverage for herb farms, general liability insurance, as well as additional policies that are appropriate for this industry.
Herb Farm 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.
COMMON SITUATIONS FOR WHICH GENERAL LIABILITY INSURANCE MAY PROVIDE COVERAGE FOR A HERB FARM
Example 1: To increase company exposure, you have signed up to sell plants and herbs at a local farmer’s market. All market participants must have $1 million in liability insurance. A general liability coverage will assist in meeting this requirement.
Example 2: A client falls over a potted plant while visiting your farm. Her injuries need multiple medical visits and two weeks off work. She has filed a lawsuit against your company. Your legal fees and any damages awarded by the court should be covered by general liability insurance.
Example 3: Your website designer, unbeknownst to you, utilises a copyrighted picture while developing the firm website. The photo’s owner has sued you for copyright violation. Legal counsel and awarded awards will be covered by general liability insurance up to the policy limits.
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
Herb farms in America pay an average of $500 – $1,200 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 Herb Farms
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 herb farms should have are as follows:
Insurance for Product Liability
Anyone who makes or sells a product to the general public should have product liability insurance. If a customer blames your goods for their damage or sickness, they may hold you liable. The coverage will cover the lawsuit’s awarded damages as well as the accompanying legal expenses.
Product liability insurance is designed to meet the unique demands of your company and is often supplied as part of a business owners policy (BOP).
Insurance for Commercial Property
Business property is an essential component of income generation for agricultural businesses. When insured damages, such as fire or windstorm, occur, a business property insurance policy covers such assets. This comprises company-owned properties, inventories, and equipment.
Commercial property insurance is generally included in a company owner’s policy (BOP). Due to the particular nature of this industry, farm owners are advised to clarify what is covered and what is excluded from the policy. Those who want to cover their crops should speak with an insurance agent about optional endorsements.
Coverage Options for Some Herb Farms
In addition to the insurance listed above, your herb farm may need other forms of coverage based on particular features of your business. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Commercial Vehicles
Any firm that utilises a car for business reasons must get a separate commercial auto insurance coverage. In the case of a collision, the insurance will pay for the repair or replacement of the company-owned car, as well as extend obligation to third-party claims for human injury and vehicle damage. While the state requires a minimum level of coverage, company owners should consider acquiring limits that are greater than the required minimum.
Depending on the provider, commercial vehicle insurance may be purchased as a separate policy or as part of a business owner’s policy (BOP).
Insurance for Workers’ Compensation
While most states require firms to have workers’ compensation insurance, the laws for agricultural labourers are somewhat different. Some states mandate coverage when payroll reaches a specific level, while others do not need any coverage at all. Work with your insurance agent to determine your state’s standards, and consider getting voluntary compensation coverage to protect your workers if they are hurt on the job.
This insurance is often acquired as a separate policy.
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.