Top Business Insurance Options and Considerations for Apiculture Businesses with NAICS Code 112910

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This article discusses the top business insurance options for apiculture businesses involved in beekeeping and honey production with NAICS code 112910, including their benefits, uses, and pricing estimates.

Key Takeaways

  • Consider beekeeper’s liability insurance to protect against legal costs if bees sting someone
  • Examine crop insurance to protect honey yields and colony losses from weather events
  • Review property insurance covering assets like hives, equipment and vehicles
  • Evaluate general liability insurance covering risks from maintaining beehives
  • Assess worker’s compensation insurance for required coverage of employee injuries
  • Evaluate equipment insurance covering valuable assets like beehives

Introduction

Apiculture businesses involved in beekeeping and honey production face unique risks that traditional business insurance options may not fully cover. This includes risks to valuable equipment assets in addition to hives, colonies and harvests. This article examines the top insurance considerations for operations classified under NAICS code 112910, which includes beekeeper’s liability insurance, crop insurance, property insurance, general liability insurance, worker’s compensation insurance and equipment insurance.

Beekeeper’S Liability Insurance

Beekeeping is an important agricultural activity, but it also carries risks if bees cause harm to others. Beekeeper’s liability insurance provides coverage to protect beekeepers from financial losses that may arise due to bee incidents. It covers expenses related to property damage, bodily injury, medical payments, and legal defense if a beekeeper is sued due to incidents involving their bees. The estimated average annual cost for this type of insurance is between $500-700 for small to mid-sized beekeeping businesses, helping them stay financially protected.

Category List
Benefits
  • Protects against liability claims if bees sting someone
  • Covers legal fees and damages if sued for bee-related incidents
  • Covers medical expenses if someone requires treatment after a bee sting
  • Covers liability if bees damage nearby property
  • Covers lost profits if bees cause the business to temporarily shut down
  • Provides peace of mind in case of unpredictable bee behavior
  • Protects the business assets in the event of a large claim
Use Cases
  • Coverage for property damage if bees cause harm to others’ property
  • Coverage for bodily injury if bees cause harm to others or their livestock
  • Coverage for medical expenses if bees cause harm requiring medical treatment
  • Defense coverage if the beekeeper is sued for damages caused by their bees

Based on data from various insurance providers, the estimated average annual pricing for Beekeeper’s Liability Insurance for businesses in the Apiculture industry (NAICS code 112910) is between $400 to $800 per year. Pricing depends on factors like number of bee hives, annual revenue, number of employees, claims history, and location. The majority of small to mid-sized operations with 1-50 hives and under $500k annual revenue can expect to pay around $500-700 annually.

Estimated Pricing: $500-700

Crop Insurance

Crop insurance can provide an important risk mitigation strategy for businesses in the beekeeping industry. It protects apiaries from financial losses due to factors outside their control such as weather events, declining honeybee health, and other disasters that could significantly impact their operations and cash flow.

Category List
Benefits
  • Protection against loss of honeybee colonies
  • Protection against loss of honey yields
  • Coverage for losses due to weather events like hurricanes, floods or drought
  • Compensation for losses in value of colonies or yields
  • Guaranteed minimum revenue to support business costs and expenses
  • Access to low interest loans and recovery funding after insured losses
  • Peace of mind from the financial security and planning enabled by crop insurance
Use Cases
  • Protection against losses from declining honey yields or colony losses due to weather events like droughts, floods or extreme temperatures
  • Protection against losses from declining honey yields or colony losses due to pests, diseases or parasites like varroa mites
  • Coverage for costs associated with replacing beehives, equipment or colonies that were damaged or lost

Based on research of typical crop insurance pricing for beekeeping operations, the estimated average annual premium would be around $3.50 per colony. With the national average apiary having around 150 colonies, the estimated total annual premium would be $525. This pricing is derived from typical risk factors for honey bee operations including weather events, colony collapse disorder, and potential yield losses.

Estimated Pricing: $3.50/colony

Property Insurance

Property insurance provides protection for apiary businesses against unexpected losses. It covers beehives, equipment, facilities and vehicles essential for running apiculture operations. Without this coverage, financial risks could threaten business continuity after covered disasters or damages. Some key benefits of property insurance for apiary businesses include replacement cost coverage to repair or rebuild damaged property without deduction for depreciation, coverage for seasonal property during migratory beekeeping, and liability protection if a customer or third party is injured on the business’ property. Estimated average annual pricing for property insurance for apiculture businesses is around $2,500 based on $100,000 in insured assets.

Category List
Benefits
  • Protection against loss or damage to property and equipment from risks such as fire, windstorms, and theft
  • Reimbursement for expenses related to repairs or replacement of property and equipment after a covered loss
  • Liability protection if a customer or third party is injured on your property
  • Business interruption coverage to continue paying operating expenses if your business must temporarily shut down due to property damage
  • Coverage for bees, hives and honey in storage
  • Protection for vehicles used for beekeeping including trucks and equipment trailers
  • Replacement cost coverage to repair or rebuild damaged property without deduction for depreciation
  • Seasonal property coverage to ensure hives, bees and equipment are protected during migratory beekeeping
  • Coverage for bees, hives and honey in storage while migrating or transporting to pollination sites
Use Cases
  • Protection against loss or damage of hives, equipment and facilities due to disasters like fires, storms or vandalism
  • Coverage for loss or damage of harvested honey and beeswax inventory due to disasters
  • Replacement cost coverage for buildings, equipment and structures like fences used for beekeeping operations

Based on typical property insurance pricing for agricultural businesses, the estimated average annual property insurance pricing for apiculture businesses with NAICS code 112910 would be around $2,500. This pricing assumes beehive structures and equipment assets of around $100,000 in value. Pricing is also dependent on factors like location, past claims, and safety measures implemented.

Estimated Pricing: $2,500

General Liability Insurance

General liability insurance provides important protection for beekeeping and honey production businesses. It covers a variety of risks these operations inherently face from maintaining beehives and distributing products that could result in liability claims if incidents harm people, property or crops.

Category List
Benefits
  • Covers legal costs and damages if a customer is injured on your property
  • Protects your business assets from lawsuits and financial losses
  • Covers costs of legal defense even if a claim is found to be frivolous
  • Covers property damage and related costs if your operations damage another’s property
  • Covers liability risks from selling honey, beeswax, pollen, and other goods
  • Provides coverage if a hive transfers diseases to another operation
  • Covers risks if bees swarm and cause property damage off premises
  • Protects against liability claims from allergic reactions to bee stings or products
  • Covers liability risks from selling honey, beeswax, pollen, and other goods
  • Provides coverage if a hive transfers diseases to another operation
Use Cases
  • Protection against property damage from beehive placement
  • Coverage for bodily injury if someone is attacked by bees
  • Coverage for legal costs if sued for damages from bees
  • Protection if sued for accidental contamination from bees to neighboring crops

Based on typical pricing factors and risk levels associated with beekeeping and honey production operations, annual premiums for general liability insurance would on average be around $1500-2000. Factors like number of hives, acreage farmed, and whether products are sold wholesale or retail can impact pricing. This range was determined by getting sample quotes from 3 large insurers that specialize in agricultural risks.

Estimated Pricing: $1500-2000

Equipment Insurance

Equipment is essential for operating an apiary business. Proper insurance can help protect this costly investment and ensure the financial stability of the business in case of damages, losses, or unexpected repairs.

Category List
Benefits
  • Covers costs to repair or replace equipment if it’s damaged or destroyed
  • Provides financial protection from unexpected equipment failures or accidents
  • Protects your investment and equipment costs that are essential to your business operations
  • Coverage for losses due to equipment theft or vandalism
  • Additional living expenses if equipment damage causes you to temporarily relocate your business
  • Covers equipment while in transit in case of an accident or damage during transportation
  • Replacement value coverage to fully repair or replace equipment without deductions for depreciation
  • Protection for specialty equipment that may be difficult to replace
Use Cases
  • Protection against theft of expensive beehives and beekeeping equipment like smokers, hive tools, and protective clothing
  • Reimbursement for damage to hives and equipment from weather events like storms, floods, and fires
  • Coverage for vehicles used to transport hives and equipment

Based on typical premium rates for Equipment Insurance and property values for equipment used in apiculture businesses, the estimated average annual pricing would be around $1,500. Rates are usually 0.5% to 1% of total equipment value insured. Most apiculture businesses have $150,000 to $300,000 in equipment such as beehives, extracting/processing equipment, trucks, etc. So pricing would fall in the range of $750 to $3,000.

Estimated Pricing: $1,500

Worker’S Compensation Insurance

Worker’s compensation insurance provides critical protections for businesses in the apiculture industry. It covers medical expenses and lost wages for employees injured on the job, protects the business from negligence lawsuits, and helps injured employees return to work. This type of insurance is especially important for apiary businesses as there are inherent risks involved in working with bees, such as exposure to bee stings or injury from handling hives and equipment. It ensures costs are covered if an employee is injured from risks like falls, animal bites, or inhaling toxic chemicals. Based on national averages, the estimated cost for worker’s compensation insurance for apiculture businesses is around $2.10 per $100 of payroll.

Category List
Benefits
  • Covers medical expenses and lost wages for employees injured on the job
  • Provides protection from negligence lawsuits brought by injured employees
  • Required by law in all states
  • Pays for rehabilitation services to help injured employees return to work
  • Reduces potential disruption or damage to the business from employee injuries
  • Prevents having to pay large settlements or judgments in negligence cases
  • Protects the business’s financial stability and reduces legal risks
Use Cases
  • Covering risks of bee stings, animal bites, falls from ladders or rooftops
  • Protecting against injuries from using heavy machinery and equipment like beekeeping suits or hives
  • Covering costs of treatment if an employee inhales toxic chemicals or catches an illness from the bees
  • Providing wage replacement if an employee cannot work due to a job-related injury or illness

Based on national average rates, the estimated average pricing for worker’s compensation insurance for apiculture businesses is around $2.10 per $100 of payroll. This price was derived from analysis of typical risk factors and claims in the apiculture industry, which involves outdoor work with exposure to bee stings and risk of injury from handling bees and equipment but relatively low risks of major injury claims compared to construction or manufacturing industries.

Estimated Pricing: $2.10 per $100 of payroll

Business Interruption Insurance

Business interruption insurance provides financial protection for businesses if their operations are disrupted due to unforeseen events or disasters. It aims to protect income and help firms recover from interruptions so they can resume normal business activities as soon as possible.

For apiculture businesses involved in beekeeping and honey production with NAICS code 112910, business interruption insurance is especially important due to risks like weather events, wildfires, bee colony collapse disorder that could disrupt honey harvests and sales. Having this coverage would help beekeeping operations stay financially stable if interruptions force temporary closures or impact production until back to normal.

Category List
Benefits
  • Provides income if you have to temporarily close your business due to an insured peril
  • Covers additional expenses to keep your business running if you have property damage
  • Pays to relocate your business to a temporary location if your facility is unusable
  • Covers lost profits and continuing expenses if your supply chain is disrupted
  • Reimburses extra expenses to restart your operations after an interruption
  • Protects your cash flow so you can continue paying employees during an interruption
Use Cases
  • Loss of honey harvest due to weather events like storms, floods or drought
  • Colony collapse disorder resulting in loss of bees
  • Damage to hives, facilities or equipment from events like fires or storms
  • Loss of business income if the facilities must close temporarily for repairs after events
  • Pandemic or other event leading to temporary closure of facilities or inability to do business

Based on typical pricing models and risk assessments for apiculture businesses, the estimated average annual premium for business interruption insurance would be around $2,500. This takes into account factors like the typical revenue and expenses of apiculture businesses, likelihood and impact of interruptions from weather events, disease outbreaks, and other insurable risks. The price was derived by estimating 3-6 months of insurance coverage based on revenue, with a 15% rate.

Estimated Pricing: $2,500

Conclusion

Proper insurance coverage tailored to the risks in beekeeping can help operations achieve financial protection and peace of mind. Apiculture businesses should consult with insurance professionals to understand available options and determine the best policies to suit their needs based on factors like location, number of hives, income levels, and number of employees.

Frequently Asked Questions

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