Owning and operating a flower shop can be a rewarding and fulfilling experience, but it also comes with its fair share of risks. Just like any other business, flower shops need insurance coverage to protect their assets, employees, and customers. In this comprehensive guide, we’ll discuss the various types of business insurance that are essential for flower shop owners, as well as additional coverage options, factors affecting insurance costs, and tips for finding the best insurance policy for your specific needs.
- 4 best business insurance companies for flower shops
- Why do flower shops need to have business insurance?
- Should florists still have their own insurance? And why?
- Types of insurance coverage essential for flower shops
- How much does flower shop insurance cost?
- How to find cheap flower shop insurance?
4 best business insurance companies for flower shops
Here are the 4 best business insurance companies that we recommend for flower shops:
- Simply Business: Best for comparing several quotes from top-tier carriers and excellent customer satisfaction ratings
- The Hartford: Best for comprehensive coverage and unparalleled ethical standards
- NEXT: Best for affordable general liability insurance coverage
- Tivly: Best brokerage firm if you prefer working with an independent and knowledgeable agent
Simply Business: Best for comparing several quotes from top-tier carriers and excellent customer satisfaction ratings
Simply Business is an online insurance marketplace that connects flower shop owners with multiple insurance carriers, allowing them to compare quotes and find the best coverage at the most competitive prices. With an easy-to-use platform and a focus on excellent customer satisfaction, Simply Business simplifies the insurance shopping process for flower shop owners.
Flower shop coverage details:
- General liability insurance
- Commercial property insurance
- Business interruption insurance
- Workers’ compensation insurance
- Additional coverage options available based on individual needs
Pros:
- Ability to compare quotes from multiple top-tier carriers
- Excellent customer satisfaction ratings
- User-friendly online platform
Cons:
- Not a direct insurance carrier; acts as an intermediary
- Limited personalization compared to working directly with a carrier
- May not offer all types of specialized coverage
The Hartford: Best for comprehensive coverage and unparalleled ethical standards
The Hartford is a well-established insurance carrier with over 200 years of experience providing comprehensive coverage to businesses, including flower shops. Known for its unparalleled ethical standards, The Hartford offers a range of insurance products tailored to the needs of small business owners.
Flower shop coverage details:
- Business owner’s policy (BOP) combining general liability and commercial property insurance
- Workers’ compensation insurance
- Commercial auto insurance
- Additional coverage options, such as employment practices liability insurance (EPLI) and cyber liability insurance
Pros:
- Long-standing reputation for ethical business practices
- Comprehensive coverage options tailored to small businesses
- Excellent customer service and claims handling
Cons:
- May have higher premiums compared to other carriers
- Limited online quote and policy management capabilities
- Not specialized in flower shop insurance
NEXT: Best for affordable general liability insurance coverage
NEXT Insurance is a digital-first insurance provider specializing in affordable general liability insurance for small businesses, including flower shops. With an easy-to-use online platform, NEXT allows business owners to quickly obtain quotes and manage their policies.
Flower shop coverage details:
- General liability insurance
- Commercial property insurance
- Workers’ compensation insurance
- Professional liability insurance (if applicable)
Pros:
- Affordable general liability insurance coverage
- Easy-to-use online platform for quotes and policy management
- Quick and efficient claims process
Cons:
- Limited to general liability and basic coverage options
- May not offer specialized coverage for unique flower shop risks
- Less established than other insurance carriers
Tivly: Best brokerage firm if you prefer working with an independent and knowledgeable agent
Tivly is a brokerage firm that connects flower shop owners with independent and knowledgeable insurance agents. These agents work with multiple carriers to find the best coverage tailored to the specific needs of each business, offering a personalized approach to insurance.
Flower shop coverage details:
- General liability insurance
- Commercial property insurance
- Business interruption insurance
- Workers’ compensation insurance
- Additional specialized coverage options based on individual needs
Pros:
- Access to independent and knowledgeable agents
- Personalized insurance solutions tailored to your business
- Works with multiple insurance carriers for more options
Cons:
- May require more time and effort compared to online insurance platforms
- Limited online tools and resources
- Brokerage fees may apply
Tips for finding the best insurance policy for your flower shop
- Work with an experienced insurance agent or broker who understands the unique risks and needs of flower shops. They can help you find the right coverage and identify any gaps in your current insurance policies.
- Compare quotes from multiple insurance carriers to find the best coverage at the most competitive price. Be sure to consider factors like customer service, financial stability, and the insurer’s reputation in addition to premium costs.
- Regularly review and update your insurance policies as your business grows and changes. This will ensure that you have adequate coverage for your evolving needs.
Why do flower shops need to have business insurance?
Business insurance plays a crucial role in the overall success and sustainability of a flower shop. Apart from offering financial protection against unforeseen events, it also serves as a testament to the business’s credibility and reliability. Let’s break down these points in more detail:
Building trust with customers and suppliers:
When a flower shop has proper business insurance, it conveys to customers and suppliers that the business is responsible and committed to addressing potential risks. This reassurance can lead to stronger business relationships, increased customer loyalty, and a positive reputation in the community. For example, if a customer’s order is damaged during delivery, knowing that the shop has insurance to cover the loss can alleviate their concerns and maintain their trust in the business.
Demonstrating responsible business practices:
Business insurance is a key component of a well-managed flower shop. It shows that the business owner is proactive in mitigating risks and is prepared to handle unexpected challenges. This sense of responsibility can make the business more attractive to potential investors or partners and can contribute to the overall success and growth of the company.
Requirement for loans, leases, and contracts:
Many financial institutions, landlords, and other business partners may require proof of adequate insurance coverage before agreeing to work with a flower shop. Lenders may need insurance coverage to protect their investment, while landlords often require commercial property insurance or commercial general liability insurance as a condition of a lease. Additionally, suppliers or clients may need the assurance of insurance coverage to protect their interests in case of any unforeseen events or disputes.
In summary, business insurance is essential for a flower shop, not just for financial protection, but also for fostering trust, demonstrating responsible business practices, and fulfilling the requirements for various business agreements. By investing in adequate insurance coverage, a flower shop owner can create a more stable and prosperous business environment.
Should florists have their own insurance? And why?
Even if a flower shop has appropriate business insurance, a florist may still want to consider obtaining personal insurance for a few reasons:
Protection for personal assets:
While the flower shop’s insurance may cover damages caused to the business, it may not protect the personal assets of the florist. For example, if a florist is found to be personally responsible for damage to a customer’s property, their personal assets could be at risk. Having individual insurance can offer an added layer of protection to shield their personal belongings from liability claims.
Professional liability coverage:
The flower shop’s insurance may not provide adequate coverage for professional liability or errors and omissions. Professional liability insurance, also known as errors and omissions (E&O) insurance, protects the florist in case they are held responsible for mistakes or negligence in their work, such as a design error, wrong advice, or failure to deliver the services as promised. This coverage is essential for professionals who offer specialized services or advice.
Gaps in the flower shop’s coverage:
The flower shop’s insurance policy may not cover every possible risk that the florist faces. For example, the policy may have exclusions or limitations for certain types of claims or events. By obtaining personal insurance, the florist can fill in any coverage gaps and ensure that they are protected against all potential risks.
Peace of mind:
Having personal insurance can provide the florist with a sense of security and peace of mind, knowing that they are protected against any unforeseen circumstances that could arise in their line of work. This can allow the florist to focus on their work without the constant worry of potential liabilities.
Contractual requirements:
In some cases, a florist might be required to have their own insurance if they work as an independent contractor or if they provide services outside of the flower shop, such as freelancing or working on special events. Clients may require proof of insurance before hiring the florist to ensure they are protected against potential risks.
In conclusion, while a flower shop’s business insurance can offer a level of protection for the florist, having personal insurance can address gaps in coverage, protect personal assets, and provide peace of mind. It is always a good idea for florists to evaluate their individual risks and consider obtaining additional insurance coverage to safeguard their professional and personal interests.
Types of insurance coverage essential for flower shops
General liability insurance
General liability insurance is a must-have for every business, including flower shops. This coverage protects your business from financial losses in case of third-party bodily injury or property damage claims. For example, if a customer slips and falls in your store, general liability insurance would cover their medical expenses and any legal fees if they decide to sue.
Commercial property insurance
Commercial property insurance covers your flower shop’s physical assets, such as the building (if you own it), inventory, equipment, and fixtures, in the event of damage or loss due to events like fires, storms, theft, or vandalism. For instance, if a fire breaks out in your shop, destroying your inventory and damaging the structure, commercial property insurance would help cover the costs of repairs and replacing the lost items.
If you rent a space for your flower shop, it is very likely that you are required to have commercial property insurance before they allow you to sign the lease. This is a part of the commercial renters insurance requirements.
Business interruption insurance
Business interruption insurance, also known as business income insurance, provides coverage for lost income and operating expenses if your flower shop is temporarily unable to operate due to a covered event, such as a fire or natural disaster. This insurance can help you cover expenses like employee salaries, rent, and utility bills while your business is being repaired or rebuilt.
Business Owners Policy (BOP)
A Business Owners Policy (BOP) can be a beneficial choice for flower shops, as it combines multiple types of insurance coverage into a single, comprehensive package. BOP insurance combines general liability, commercial property, and business interruption coverage in one single policy and helps small businesses save money. A BOP is tailored to the needs of small and medium-sized businesses and can provide cost-effective protection for the unique risks faced by flower shops.
Workers’ compensation insurance
If your flower shop has employees, workers’ compensation insurance is essential. This coverage provides financial support for medical expenses and lost wages if an employee is injured or becomes ill while on the job. For example, if an employee suffers a back injury while lifting a heavy box of flowers, workers’ compensation insurance would cover their medical bills and a portion of their lost income during their recovery period.
Product liability insurance
Product liability insurance is especially important for flower shops, as it covers claims related to the products you sell. If a customer experiences an allergic reaction to a flower arrangement you provided, product liability insurance would help cover any related medical expenses or legal fees if the customer decides to sue.
Commercial Auto Insurance
If your flower shop offers delivery services or uses vehicles for business purposes, commercial auto insurance is necessary. This coverage protects your business from financial losses in the event of accidents involving your company vehicles. For instance, if one of your delivery drivers is involved in a collision while making a delivery, commercial auto insurance would help cover the costs of vehicle repairs and any potential liability claims.
Professional liability insurance (if applicable)
Professional liability insurance, also known as errors and omissions (E&O) insurance, may be relevant for flower shops that offer services such as event planning or floral design consultations. This coverage protects your business from claims related to professional negligence, errors, or omissions in the services you provide. For example, if a bride claims that your floral arrangements did not meet her expectations and sues for damages, professional liability insurance would help cover the legal fees and potential settlements.
Additional insurance coverage to consider
Employment practices liability insurance (EPLI)
Employment practices liability insurance provides coverage for claims related to employment practices, such as wrongful termination, discrimination, or harassment. If a former employee sues your flower shop, claiming they were wrongfully terminated, EPLI would help cover the legal expenses and any settlements or judgments.
Cyber liability insurance
Cyber liability insurance is becoming increasingly important for businesses of all sizes, including flower shops. This coverage protects your business from financial losses resulting from cyber threats, such as data breaches, hacking, and online fraud. For example, if your flower shop’s customer payment information is compromised in a data breach, cyber liability insurance would help cover the costs of notifying affected customers, providing credit monitoring services, and any legal fees associated with the breach.
Equipment breakdown insurance
Equipment breakdown insurance, also known as boiler and machinery insurance, covers the cost of repairing or replacing essential equipment in your flower shop in the event of a mechanical or electrical breakdown. For example, if your walk-in cooler breaks down, causing your flowers to wilt and become unsellable, equipment breakdown insurance would help cover the costs of repairing or replacing the cooler and the lost inventory.
Crime Insurance
Crime insurance provides coverage for losses resulting from crimes committed by employees or third parties, such as theft, embezzlement, or forgery. For instance, if an employee steals cash from the register, crime insurance would help cover the financial loss.
How much does flower shop insurance cost?
The average cost of flower shop insurance is $37 per month or $444 per year. This is only for general liability insurance policy. Most flower shops pay between $25 to $82 per month for their general liability insurance policy.
Below are the average costs of other coverage that flower shops may need:
| Flower shop insurance coverage | Average costs |
| General liability insurance | $37 per month |
| Commercial property insurance | $86 per month |
| Business interruption insurance | $15 per month |
| Business Owners Policy (BOP) | $94 per month |
Please keep in mind that these are just the averages, your rates will be different. Be sure to shop around with a few companies or work with a top broker like Simply Business or Tivly to compare several quotes to find the cheapest one for your shop.
Factors affecting flower shop insurance costs
Several factors affect the flower shop insurance costs. Below are the main ones:
Location
The location of your flower shop can significantly impact your insurance premiums. Shops located in areas with higher crime rates or more extreme weather conditions, such as hurricanes or tornadoes, may have higher insurance costs.
Business size and revenue
The size of your flower shop and its annual revenue can also affect your insurance premiums. Larger shops with more inventory, employees, and higher revenues may have higher insurance costs.
Claims history
Your flower shop’s insurance claims history can play a significant role in determining your insurance premiums. If your business has a history of frequent claims, insurance companies may consider your shop a higher risk, resulting in higher premiums.
Coverage limits and deductibles
The coverage limits and deductibles you choose for your insurance policies will also impact your premiums. Higher coverage limits provide more protection but come with higher premiums, while higher deductibles result in lower premiums but require you to pay more out-of-pocket in the event of a claim.
How to find cheap flower shop insurance?
To find affordable flower shop insurance, follow these steps:
- Assess your needs: Understand the specific risks and coverage requirements for your flower shop. This will help you avoid purchasing unnecessary coverage and ensure you’re protected against potential losses.
- Shop around: Get quotes from multiple insurance providers to compare coverage options, policy limits, and premiums. You can also consult an independent insurance agent or broker who can help you find suitable policies from various carriers.
- Bundle your policies: Consider purchasing multiple insurance policies from the same provider, as this can often lead to discounts. For example, a Business Owners Policy (BOP) combines general liability, commercial property, and business income insurance, typically at a lower cost than buying each coverage separately.
- Choose a higher deductible: Opting for a higher deductible can lower your premium costs. However, be prepared to pay more out-of-pocket in the event of a claim.
- Implement risk management practices: By taking steps to reduce risks and prevent losses, you can potentially lower your insurance costs. Some insurance providers offer discounts for businesses that implement safety measures, such as installing security systems, maintaining a clean and well-organized shop, and providing employee training.
- Review your coverage annually: As your flower shop grows or changes, your insurance needs may also change. Regularly review your policies and update coverage as necessary to ensure you’re adequately protected without paying for unnecessary coverage.
- Ask about discounts: Some insurance providers offer discounts for various reasons, such as being a member of a professional association, having a good claims history, or bundling policies. Be sure to ask your agent or provider about any available discounts.
- Maintain a good credit score: Some insurance companies use your credit score to determine your premiums. By maintaining a good credit score, you may qualify for lower insurance rates.
Remember, the cheapest insurance policy is not always the best choice. It’s crucial to prioritize adequate coverage and a reputable insurance provider to ensure your flower shop is well-protected in the event of a claim.
Conclusion
Operating a flower shop comes with its share of risks, but having the right business insurance coverage can help protect your livelihood and give you peace of mind. By understanding the various types of insurance essential for flower shops and considering additional coverage options, you can create a comprehensive insurance plan tailored to your unique needs. Be sure to work with an experienced agent or broker and compare quotes from multiple carriers to find the best policy for your flower shop.
