Is Your Flower Shop Protected Against Lawsuits?
A customer could slip and fall in your flower shop and decide to sue you. Or your computer system could be hacked and your client information stolen by cyber thieves. Business liability insurance is a key part of your commercial insurance package as a florist.
Liability insurance helps financially protect your flower shop against lawsuits and it’s coverage that you shouldn’t be without.
Western Financial Group, a 100% Canadian company, can help you navigate your business, car, home, and boat insurance during this period of economic uncertainty.
What’s insurance for florists?
Florist insurance protects your flower shop from the insurable risks that their businesses may face.
Florist insurance helps protect you against such incidents as customer injuries, damaged inventory, fire, and vandalism. It also financially protects florists against lawsuits.
How florist insurance protects you
You delivered flowers and the customer said they were full of insects and they suffered insect bites. Product liability insurance protects your florist business against claims of bodily injury due to your floral products. It can help cover legal, court costs, or legal settlements.
A customer comes into your flower shop and trips over a water-filled bucket of flowers that wasn’t put back in a refrigeration unit. You get sued for third-party bodily injury. Commercial general liability insurance may help cover these costs and your legal fees.
Here are the liability insurance coverages that florists need
Product liability insurance
Florists need product liability insurance for protection against defective products. Product liability insurance protects your business against legal liability for claims for bodily injury or property damage arising from your floral products.
Product liability insurance is designed to help protect your florist business by giving you insurance coverage to help cover legal, court costs or compensatory damages.
Commercial general liability (CGL) insurance
CGL insurance is also called “slip and fall” insurance because it protects you against day-to-day risks as a florist.
CGL insurance helps protect you against claims of third-party bodily injury (customer/supplier) or property damage that occurs at your flower shop. For example, if an injured client sues you for damages, it helps cover your legal expenses, any financial settlement ordered by the court, and the injured person’s medical expenses.
Your CGL policy also can help protect you from libel, slander, and false advertising allegations.
It’s not uncommon that you would carry at least $1 million in CGL coverage or likely more, depending on the size of your florist business.
Cyber insurance
If you store online financial data for your floral shop or you take credit card payments, you must protect this information and can be held liable if you don’t.
If your computer system is hacked, cybercriminals can sell the information. Without cyber insurance, you will have to pay out for the cost of restoring your computer system on your own. You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform customers affected by a cyber breach.
At Western Financial Group, we help Canadians business owners understand what their commercial insurance covers and offer expert advice to make sure you’re protected for life’s unexpected events.
What other types of insurance do florists need?
Commercial property insurance
Commercial property insurance protects your flower business and its contents, such as flower coolers, computers, furniture, and your inventory, from insured risks that can happen, such as fire, theft, flood, or vandalism.
If vandals smash an office window, commercial property damage could cover the costs of replacing the window and cover any damage or vandalism inside your flower shop.
Equipment breakdown insurance
Your flower shop likely has expensive electrical and mechanical equipment to keep your flowers fresh.
Equipment breakdown insurance provides coverage for property damage from the sudden and accidental breakdown of insured equipment not automatically covered by a standard commercial property policy.
Business interruption insurance
Business interruption insurance supports you when your flower shop can’t operate due to a covered loss. This type of insurance can be the difference between recovering from a loss and closing permanently.
There are many losses that can force your business to shut down. Some examples include:
- Damage to your equipment from fire or vandalism
- A major reduction in revenue due to a client/supplier facing losses of their own
- A disruption in your supply chain
Business interruption insurance can help with expenses such as:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
Commercial auto insurance
If you have a business car that you use for your flower shop business, it won’t be covered by your personal car insurance policy.
Final thoughts
Flower shop insurance protects your business financially from covered events such as lawsuits, vandalism, and fire. Can you afford not to be protected with florist insurance?
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5 FAQs
Why is commercial general liability essential for flower shop owners?
Flower shops can have wet floors from watering plants and that increases the risk of slip-and-fall incidents for customers and suppliers. Commercial general liability (CGL) insurance helps cover medical expenses, legal fees, and settlements if someone is injured on your premises.
Can florists be sued if flowers have bugs?
Yes, florists can face legal risks if flowers sold to customers contain bugs, but whether they can be successfully sued depends on specific circumstances and the type of loss or harm.
Is it difficult to sue a florist?
The customer must show actual harm (physical, financial, or reputational) resulting from the florist’s flowers. Minor inconveniences usually do not warrant legal action and only substantial damages are likely to succeed in court.
Why is product liability insurance important for florists?
Product liability insurance is needed because it helps protect your flower shop business from legal and financial risks associated with the products you sell.
Why do flower shops need business insurance?
Business insurance is needed because it protects the shop, its assets, and its owner from a variety of risks, including lawsuits, which could lead to substantial financial loss or even closure.
