Florist Business Insurance & Risk Strategy for Flower Shops

Flower shops are associated with being “that shop” in the romcom where the main protagonist shows up to pick a bundle for their sweetheart. We often forget that, in real life, a flower shop is a business like any other – with employees, business expenses, business strategy, and more.

Who could ever sue a flower shop? After all, flower shops offer what many might view as an incredibly low stakes product, and the mere nature of flower shops is that of peace, tranquility, and serenity – not disgruntled customers and lawsuits.

If you think any business is immune from lawsuits, your perspective might be misconstrued. Florists can exist on any scale, from small booths to massive boutiques with company vehicles delivering bundles to clients or even toting arrangements to weddings and other events. Florists need insurance – and in this article, we’ll address just why they do and some risk management strategies.

Flower Shop or “Florist Insurance”

In all over Canada, there’s some 1,500 florist shops. Florist establishments are beloved for the services they provide, the amicable nature they present, and simply the “aesthetic” they give. But florist shops shouldn’t be seen as having any less of a liability exposure than any other retail store.

Flower shops need commercial insurance. Florist insurance is a type of commercial insurance that contains numerous individual types of coverage. Depending on your shop and what it does, those kinds of insurance may vary.

For example, a flower shop might have the following insurance coverages:

• General Liability Insurance – Any business with a physical presence may need business liability insurance to protect themselves from common business liability scenarios. It covers against third-party claims of injury or property damage.
• Product Liability Insurance – Product liability insurance covers a business against claims arising from a product they provided which allegedly caused a customer bodily injury or damages.
• Commercial Property Insurance – This insurance protects the flower shop itself, as well as any stock and materials, like fertilizer, the flowers themselves, glass, office supplies, and more.
• Equipment Breakdown Insurance – This coverage protects the business’ essential tools and the perishable flowers within if there were an unexpected malfunction.
• Commercial Auto Insurance – If the florist shop had, for example, a delivery van, this insurance would cover the business if its van were to get in an accident or cause injuries.

In the case of many florist shops, a fits-all policy won’t work. We advise working with an insurance broker to help go over your business’ unique exposures to find a plan for you.

Potential Claims Scenarios for Florists & Flower Shops

Because of flower shops’ associations with being the sweet, romantic shops that they’re often marketed to be, they are heavily trafficked by customers, delivery persons, and simply just window shoppers. This poses a liability risk, since at any point one of these third-parties could injure themselves on a recently mopped but unmarked floor, or even be struck by a hanging arrangement that wasn’t secured properly.

How does florist insurance cover you? Well, here’s some common claims scenarios where having florist insurance could come in handy.

Slip and Fall Injury

A customer visits your shop to browse the selection of flowers. While walking through the store, the customer slips on a wet floor near a display of potted plants and sustains a broken arm. The customer holds you responsible for not having proper warning signs or taking necessary precautions to prevent accidents. Your florist insurance policy would cover the medical expenses and any potential legal costs associated with the customer’s injury.

Product Liability

You, as a florist, create a custom floral arrangement for a client’s special event. Unfortunately, some of the flowers used in the arrangement turn out to be contaminated with a pesticide, causing severe allergic reactions in several attendees. The affected individuals file claims against you, alleging negligence in selecting and handling the flowers. Your florist’s insurance would cover the costs of legal defense, settlements, and any resulting damages.

Delivery Van Accident

Your flower shop’s delivery van is involved in an accident while transporting a large order of wedding flowers. The accident results in significant damage to the van and causes some of the flowers to be crushed and ruined. You would need to file an insurance claim through the commercial auto insurance portion of your policy to cover the cost of repairing the van and replacing the damaged flowers.

Risk Management for Florists & Flower Shops

Insurance isn’t a be-all, end-all when it comes to florist risk management. Yes, it’s an important addition, but risk management starts with how you run your business. Here, we have listed out some exposure strategies and risk management for florists and flower shops:

• Proper Inventory Management: Consider the implementation of a robust inventory management system to reduce the risk of flower spoilage and wastage. Monitor your business’ stock levels consistently, track expiration dates, and rotate inventory to ensure adequate freshness. This helps to reduce the risk of financial losses because of damaged/expired flowers.
• Safety and Security Measures: Maintain a safe and secure environment for employees and customers. Always regularly inspect the premises for potential hazards like damaged equipment or wet floors. Make sure you implement proper signage, safety procedures, and non-slip mats. Install security systems, like cameras and alarms, to deter theft.
• Supplier Due Diligence: Be picky when doing your research about potential suppliers and do your due diligence when selecting one. Ensure that the supplier in question has a good reputation for delivering quality and request a certificate of authenticity. Reliable suppliers help minimize the risk of receiving contaminated flowers or subpar plants.
• Employee Training and Protocols: Train employees on proper handling and care of flowers, as well as safety procedures. We advise providing guidance on maintaining cleanliness, preventing accidents, and adhering to industry standards.
• Get Insured: Obtain appropriate insurance coverage for your florist shop. As mentioned before, insurance alone isn’t enough to fully protect your business – but it is an important inclusion.

Risk management is an ongoing process. Make sure to regularly review your strategies and update them accordingly to any changing circumstances. We advise seeking guidance from experts to provide valuable insights and, when you need us, Excalibur’s Defenders are here!

For further questions regarding florist insurance and exposure strategies for flower shops, give us a call. If you’re ready to begin, we’re happy to start you with a quote.