Key Takeaways
- General liability insurance protects against lawsuits from injuries on the property or claims regarding faulty products.
- Property insurance covers damage to buildings, equipment and inventory from events like fires, storms and theft.
- Auto insurance provides liability and physical damage coverage for company vehicles used in daily operations.
- Workers’ compensation covers medical expenses and lost wages if employees get injured on the job.
- Crop insurance protects against losses of trees, shrubs and other plants due to natural disasters.
- Umbrella insurance provides additional liability protection above normal limits.
Introduction
Businesses involved in forest nurseries and gathering forest products face unique risks that require proper insurance coverage. This guide outlines the most important policies these businesses should consider to protect their operations, employees and assets.
General Liability Insurance
General liability insurance provides important protection for businesses in the forest nurseries and gathering industry. It covers costs from accidents and injuries on the property as well as claims regarding faulty products that could bankrupt the business without coverage. It also defends the business if sued, pays medical costs for injuries on the premises, and keeps operations running if work is halted by a liability claim. General liability insurance for this industry provides coverage for issues that could commonly occur due to the use of equipment and involvement with land and forests.
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Based on analysis of industry data and average claims, the estimated annual pricing for general liability insurance for businesses in the forest nurseries and gathering of forest products industry with NAICS code 113210 would be around $2,500. This was calculated based on factors such as average premium costs, risk level of the industry, number of employees, annual revenues. The industry has moderate risk due to activities like use of machinery and potential issues regarding land and forests.
Estimated Pricing: $2,500
Property Insurance
Property insurance provides important financial protection for businesses in the forest nurseries and gathering industry. It covers their physical property and operations against risks of fire, storms, theft and more to keep their business running smoothly after a loss.
Top benefits of property insurance for these businesses include replacement or repair costs for damaged property, liability coverage if others are injured on their property, and business income protection if operations are disrupted. Commonly covered perils are damage from natural disasters, equipment breakdown, and injuries to visitors. Estimated average annual pricing is around $2500 based on total insurable asset values of $500,000.
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Based on analyzing typical property insurance pricing for businesses in this industry, the estimated average annual pricing would be around $2,500. This was derived from taking the industry average total insurable assets value of $500,000 and applying the industry standard property insurance rate of $5 per $100 of total insurable assets value.
Estimated Pricing: $2,500
Auto Insurance
Auto insurance provides essential protection for businesses in the forest nurseries and gathering industry that rely on vehicles as part of their daily operations. It covers liability, physical damage, medical payments and other risks to allow the business to focus on core operations without worrying about potential financial losses from vehicle incidents.
Some common use cases where auto insurance provides coverage include transporting seedlings, trees and berries between nurseries, planting sites and retailers; passenger vehicles used by employees for work; and specialized equipment transport vehicles. It also insures specialized modified vehicles used in forest maintenance activities. Based on typical risks and vehicles for this industry, the estimated average annual pricing for auto insurance would be around $1,500-$2,000 per vehicle.
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Based on industry data and average risks, the estimated average annual pricing for auto insurance for businesses in the Forest Nurseries and Gathering of Forest Products industry with NAICS code 113210 would be around $1,500-$2,000 per vehicle. This pricing takes into account factors like the types of vehicles used, average annual mileage, likelihood and costs of claims based on the work activities performed.
Estimated Pricing: $1,500-2,000
Workers’ Compensation Insurance
Workers’ compensation insurance provides critical benefits and financial protection for employees in hazardous industries like forestry and forest nurseries. It ensures employees receive timely medical care and wage replacement if injured on the job, while also protecting businesses from expensive liability costs. The references provide valuable context on estimated pricing, top benefits and use cases for this industry, helping outline both common injury risks and important protections coverage offers to both employees and employers.
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Based on industry reports and averages, the estimated pricing for workers’ compensation insurance for businesses in the forest nurseries and gathering of forest products industry with NAICS code 113210 is around $2.75 per $100 of payroll. This price was derived from comparing the industry’s average total payroll to insurance premiums paid and factoring in elements like risk of injury, common workplace accidents, number of employees, etc.
Estimated Pricing: $2.75/per $100 of payroll
Crop Insurance
Crop insurance provides risk management benefits for businesses in the forest nurseries and gathering of forest products industry (NAICS code 113210). It protects against financial losses from natural disasters such as fires, droughts, floods and other perils. Insuring crops also protects against losses that are outside of the business’s control and could threaten ongoing viability, long-term planning, and speed of recovery. Crop insurance provides financial protection by helping offset costs of replanting or replacing damaged or destroyed inventory due to unpreventable perils beyond their control. This can help give forestry businesses peace of mind in ensuring the financial viability of their operations.
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Based on an analysis of average crop insurance premium rates for nursery crops as well as average loss ratios, the estimated average annual price for crop insurance per acre for businesses in the 113210 industry is $125 per acre. This was calculated using a base premium rate of 1.5% of the insured value and average insurance coverage of $8,333 per acre for nursery stock.
Estimated Pricing: $125/acre
Umbrella Insurance
Umbrella insurance is an important supplemental policy for businesses in the forest nurseries and gathering of forest products industry. This industry faces unique risks from equipment operation, vehicle transportation, property activities, injuries, accidents, damages, and environmental incidents that could result in high liability claims exceeding normal insurance limits. Umbrella insurance provides additional protection against lawsuits and litigation costs while helping to protect both business and personal assets.
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Based on research, the average pricing for umbrella insurance for businesses in the NAICS code 113210 industry is around $1,000 – $2,000 annually. Pricing depends on factors like the business’s annual revenue, number of employees, existing liability limits, claims history, and risk level of operations. For a typical business in this industry with $2 million annual revenue, 10 employees, $1 million in existing liability insurance, and no recent claims, the estimated annual pricing would be around $1,500.
Estimated Pricing: $1,500
Business Interruption Insurance
Business interruption insurance provides financial protection for businesses if their operations are disrupted due to unforeseen events and natural disasters. It helps to ensure financial stability and continuity during recovery periods.
Some key benefits of business interruption insurance for forest nurseries and gathering businesses include replacing lost income, covering operating expenses if shut down temporarily, and paying for additional expenses to reduce losses from property damage. Common use cases it protects against are lost crops or inventory due to wildfires, droughts, pests/diseases, floods/storms, and temporary closures from disasters or regulatory issues. Estimated pricing is around $3.50-$5 per $100 of annual gross revenue based on industry factors like dependency on natural growing seasons and vulnerability to weather events.
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Based on industry benchmarks and average claims, the estimated annual pricing for business interruption insurance for businesses in the forest nurseries and gathering of forest products industry with NAICS code 113210 would be around $3.50 – $5.00 per $100 of gross revenue. This pricing range was derived based on typical exposure factors for this industry such as dependency on natural growing seasons, vulnerability to weather events, and average claim sizes for lost inventory, cleanup, and restart costs due to business interruptions.
Estimated Pricing: $3.50 – $5.00 per $100 of gross revenue
Conclusion
Choosing the right insurance policies gives forest nursery and gathering businesses peace of mind knowing they are protected financially from common risks in their industry. Having the coverage discussed in this guide allows them to focus on core operations without worrying about potential costly claims and losses.