A realistic look at a flowery world

When addressing the insurance needs of a florist it is important to take into consideration the everyday operating practices of the business, so the client can be assured that the policy covers the unique needs of the business. Auto & General offers a specific policy for florists and these are the covers they recommend.

If you insure a florist, or if you are targeting this type of business, take note of the cover suggested by the experts to meet the unique requirements of florists.

Fire and Perils

Considering the stock and tools used by florists, fires can be very destructive and could result in a total loss of the building and or the entire contents thereof. When insuring the contents, all stock and fixtures and fittings should be included.

One of the extensions under the fire section is malicious damage to property. This would include cover for all the contents, including the flowers, against vandalism or other malicious damage.

Machinery Breakdown

Many florists use refrigerators to ensure optimum care of the fresh flowers. Cover for the accidental breakage of machinery is available under the Machinery Breakdown. However, Auto & General's surveys among florists indicated that most florists did not consider this cover vital, since the stock they carry is collected from the market on a daily basis, so they always have fresh flowers.

Business Interruption – Loss of Profits

It is important to keep in mind that in the event of a catastrophic event such as a fire or any of the other perils, the premises could be declared uninhabitable, and the business would no longer be operational. However, even though the florist cannot produce an income, the business would still be responsible for certain expenses, such as salaries. Business interruption cover would ensure that the operating expenses, net profit and standing charges are covered.

If a big event, such as a wedding, is cancelled and leads to a loss of profit, there is no cover for any losses sustained by the florist. Most florists therefore ask clients for a deposit to cover such an eventuality. While the cancellation of an event is insurable by special risk underwriters, is it very expensive and it is unlikely that the florist's client would have such cover.

Theft

This section would cover the business contents against theft or an attempted theft. It is also important to note that the provision within this section is that any loss must be due to a violent or forced entry into the premises or exit from the premises.

Money

The money section covers the business against any theft of cash during office hours by holdup, or theft of cash after office hours from the safe. The money must be kept in a SABS catergorised safe after office hours.

Glass

Many florists have large front windows to allow passers-by to see their beautiful arrangements. It is important for the business to know if their rental agreement states that they are held responsible for breakage of glass. If so, the glass section of the policy covers the business against accidental breakage of all internal and external glass.

Electronic Equipment

Most florists use electronic equipment to keep track of orders, to accept payment and to manage their administration. This section would cover the business against loss of or damage to their electronic equipment following fire, lightning, storm, malicious damage and theft.

The policy can also be extended to cover reinstatement of data and any increase in cost of working following an insured event. It is also important to note that the provision within this section is that the installation be protected by approved lightning protectors/surge arrestors.

Business All Risks

This section would cover the business against loss or damage to items such as cellphones and laptops, which would be removed from the florist's premises.

Public Liability

This section would cover the business against any claims brought about by customers who are injured or whose property is damaged as a result of negligence on the part of the insured or their employees. The florist must make sure that they are covered against work away from the premises, when they do work at other premises, e.g. weddings and so on.

Stated Benefits

If an employee of the florist is injured on duty, this will be covered under the Stated Benefits section. The florist will have cover for their staff in terms of death, total permanent disability, temporary disability and medical expenses.

Goods in Transit

This section would cover the business against loss or damage to stock that is conveyed to and from their premises. If the flowers are delivered by the supplier, non-delivery of the flowers for whatever reason, is not covered. However, in most cases, the florist would collect the flowers from the market themselves and goods in transit cover is vital.

Motor

Most florists have vehicles used to collect flowers from the flower markets and to make deliveries. This section would cover the business owned vehicles against any loss or damage to such vehicle. The section is also extended to include cover against injury to any third party and damage to third party property.