Greenhouse Business Trends Impacting Insurance in 2024
December 17, 2023 
As we approach the new year, it’s time to anticipate what 2024 may hold for your horticultural business. Growing your operations and maximizing profits is undoubtedly a priority. It’s equally important to anticipate potential challenges and ensure your insurance coverages adapt to changes within your business.
Each year, our Hortica team monitors emerging risks to help greenhouses prepare and protect their business. That includes updating your insurance policy. What worked well last year may now leave you exposed.
Let’s take a look at some key trends projected to influence horticultural and floral businesses in 2024, including tips to help you prepare.
Review Property Values and Coverage Limits
The value of your business’s property may have increased substantially since your last formal valuation. That means your current coverage limits may fall short following a significant loss. Think of larger, unexpected risks like severe weather damage.
Talk with your agent ahead of time to discuss the replacement costs of your business. You may need to increase building and business personal property limits to keep your business protected.
Account for Inflation
Inflation is one of the top economic concerns heading into 2024. The consumer price index rose nearly 9% in 2022, the highest increase in 40 years. With rising inflation, costs of property repairs and replacements soar. If your coverage limits haven’t increased recently, inflation erosion could leave you underinsured in the event of a major claim.
You can stay one step ahead by considering an inflation guard endorsement or scheduled limit increase to your policy. These options automatically adjust annual limits to reflect rising values and prices.
For example, a 5% annual increase would bump your $500,000 building coverage limit to $525,000 the following year.
It’s also important to periodically reassess the replacement value of your insured property. If the current rebuild cost far exceeds your limits due to inflation, you could see large out-of-pocket expenses without sufficient coverage.
Your insurance agent can help you receive an updated valuation of your buildings and equipment. That way you can determine if a limit increase is warranted beyond the automatic inflation adjustment.
Evaluate Your Exposure to Climate Change Effects
As of November 8, the U.S. has experienced 25 weather/climate disaster events that exceeded $1 billion, according to the NOAA. The annual average from 2018 to 2022 is 18 events.
As severe weather becomes more frequent, it’s important to protect your greenhouse from financial disaster.
Damage to your structures and inventory from hail, high winds, or freezes can be catastrophic without adequate insurance. Even a short-term shutdown from a catastrophe can hurt your revenue and profits.
Carefully evaluate your current deductibles, limits, and business interruption coverage to account for longer repair and recovery timelines.
Protect Against Increasing Cyber Exposures
Data breaches and cyber attacks are growing more common, and it’s happening to businesses of all sizes and sectors. In fact, 1,802 data compromises occurred in 2022 — affecting over 422,000,000 victims according to the Identity Theft Resource Center.
Cybercriminals are constantly evolving their tactics. Your greenhouse’s protection will need to improve, too.
Now is the time to conduct an annual cyber risk assessment to help identify vulnerabilities in your IT infrastructure. It’s also beneficial to safeguard your computer systems, networks, and data with a cyber liability policy. It can help you cover costs associated with:
- Data recovery
- Lost income
- Notification requirements
- Public relations services
- Legal fees
- Credit monitoring services
A key benefit of cyber security insurance can often include online resources. It’s just one more way for you to stay informed of practical strategies, insights, and guidelines to help you mitigate evolving cyber risks.
Focus on Employee Retention
Employee retention is a constant challenge for the industry. The nature of the work, seasonality, and locations of many nurseries and greenhouses can make hiring difficult.
As you plan for 2024, prioritize tailored retention strategies, including:
- Flexibility and incentives like bonus pay for peak seasonal work
- Housing options, meals, or transportation assistance to alleviate commute challenges
- Training and advancement opportunities to help keep employees engaged
- Modernized equipment and technology to help reduce physical strain
- Safety initiatives and onboarding to help prevent injuries
First-year employees account for more than 25% of all workplace injuries. Don’t hesitate to talk with your insurer about safety strategies. They may have consultants who can help you evaluate your risk management program and offer recommendations.
In some cases, your insurer may also offer group benefit plans to help support recruitment and retention efforts.
Schedule Your 2024 Insurance Review
The start of a new year is an opportunity to review your business plans and finances. It’s also the perfect time to meet with your insurance provider and re-evaluate your insurance strategy.
One of the best parts about my job is seeing all of the great things that make our industry unique — and helping protect it.
As you head into next year, here are some key discussion points for your 2024 insurance review:
- Ensuring limits reflect current property value and operational scope
- Tailoring coverage for new or expanded products and services
- Implementing risk mitigation practices to control losses and reduce premiums
- Assessing exposure to natural catastrophes and cyber incidents
- Ensuring competitive and adequately protected employee benefits
The tips and discussion points I’ve shared are meant to give you a head start, but it shouldn’t replace the conversation you should be having with your insurer and local experts.
If you have any questions in the meantime, please reach out. Best of luck in the new year!
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