Florist Insurance

Many flower shops may start out with a business owner’s policy (BOP), which is a policy package including several types of coverage at a discounted rate. A BOP typically includes:

• Commercial General Liability (CGL) Insurance: Perhaps the best-known type of business insurance, CGL protects your business and finances from a third-party bodily injury or property damage lawsuit if a customer sues you. Commonly called ‘slip-and-fall’ insurance, CGL pays for your legal defence if you are sued, the financial outcome of a lawsuit, and an injured person’s medical expenses. It also pays for damages to a third-party’s property that may be caused by the products you sell or your shop’s operations. In essence, CGL allows you to carry on with your daily business while dealing with a real or fraudulent legal claim of negligence or wrongdoing.

• Commercial Property Insurance: If you have a physical storefront housed in a property that you own, you need commercial property insurance. This type of coverage provides you with financial support for insured risks that you cannot control, like a fire, flood, or theft. In addition to protecting the property, it also covers any contents inside your shop such as computers, furniture, flower coolers, and your inventory.
  • Furthermore, you may want to add business interruption coverage to your commercial property policy. Business interruption insurance does not provide coverage for any income you lose because of a pandemic, epidemic, or government-mandated closure, but it will cover you for the income you lose following an insured event. For example, if your shop is flooded and must remain closed while repairs are underway, business interruption coverage will reimburse you for your losses.

For a more comprehensive florist public liability insurance policy, you may wish to include additional coverages, including:

• Product Liability Insurance: This type of coverage protects you from allegations of third-party bodily injury or property damage caused by any product you manufacture, distribute, or sell. It may or may not be included in a CGL policy, so check with a licensed broker to find out if you need to add it to your insurance. Product liability coverage is vital for any small business selling goods both online and at a physical storefront.

• Commercial Auto Insurance: If you use a van to deliver your floral arrangements to your customers, you need a commercial auto policy to protect your drivers and vehicles. Most personal car insurance policies do not cover the cost of damages or injuries incurred because of an accident when using a vehicle for business purposes. If you have five or more vehicles for your business, you may require a commercial fleet insurance policy.

• Cyber Liability Insurance: Flowers are of the earth, but a lot of people buy them online. It’s your legal responsibility to protect your customers’ personal and financial data if you’re selling your arrangements through your website or a third-party marketplace like Amazon, Wayfair, or Etsy. Cyber liability coverage protects you from the costs related to a data breach or if you’re a victim of cybercrime.

• Commercial Crime Insurance: This coverage protects you from fraud, forgery, and theft by an employee. Essentially, it offers protection from losses because of burglary, robbery, or theft, and liabilities or losses arising from an employee’s fraudulent acts.

• Tenant Legal Liability Insurance: If you lease or rent a commercial property for your flower shop, consider tenant legal liability insurance. It covers you for a business property you do not own from third-party lawsuits for bodily injury and property damage, as well as any loss or damage to the property you lease or rent.