WEBCAST Risk & Liability Issues Affecting Greenhouse Growers, Nurseries & Garden Centers

Transcription

1 WEBCAST Risk & Liability Issues Affecting Greenhouse Growers, Nurseries & Garden Centers

2 Today s Agenda Intro to NIP Group Industry Overview Specific Challenges faced by Greenhouse Growers, Nurseries, and Garden Centers Benefits of Specialized Coverage Overview of the GrowPro Program Things to Look For, when preparing a submission Summary Q&A Page 2

3 About NIP

4 About NIP Group A top 100 business insurance and risk management intermediary Provide a wide range of brokerage, underwriting, and risk management services Entrepreneurial, innovative, and responsive Deep knowledge of key markets 20+ years of providing agents with exceptional coverage, competitive commissions, and fast, efficient service Page 4

5 About NIP Programs Develop and manage customized business insurance for industries with specialized insurance and risk management needs Custom-tailored coverage for select markets Unique underwriting, loss control, and claims service models, valued by both clients and insurers Underwritten by major insurers such as Travelers, Chartis, Argo, AmTrust Market-specific expertise Stability through all market cycles Page 5

6 Programs FuneralPro for Funeral Directors GlassPro for Glass Dealers and Installers GrowPro for Greenhouses, Garden Centers and Nurseries HVACPro for AC, Refrigeration, Heating or HVAC Contractors LandPro /TreePro for Landscapers and Tree Services Providers MaintenancePro for Cleaning and Maintenance Services MedEdge Affinity program for Physician Assistants and Optometrists PetPro for Pet Care Professionals PlumbingPro for Commercial Plumbing Contractors PowerPro for Electrical Contractors SignagePro for Sign, Display and Awning Companies SitePro for Excavation, Site Prep and Paving Contractors WorkPro Workers Compensation Page 6

7 Industry Overview

8 Industry Overview Major Segments Greenhouse Growers Nurseries Garden Centers Page 8

9 Industry Overview Compelling Market Opportunity Large, highly-varied and fragmented market Attractive niches across three distinct segments Target Market represents more than $1.3 billion in premiums Target market represents nearly 50,000 businesses nationally Premium ranges by sub segment between $25,000 and $45,000. Large market size enables a selective underwriter to quickly build a large program ($25M +) Profitable Class Underwriting Profile Profitable nationwide underwriting results for class of business Known and controllable underwriting exposures with attractive niches Property and GL-Driven class of business Page 9

10 Industry Overview Industry Overview Green Industry represents nearly 250,000 businesses with > $150 Billion of annual receipts Employs 1.2 million and generates > $3.6 billion in insurance premiums annually. 1, 2 Market Size Target accounts primarily in grower and seller (AKA producers and retailers) segments, commonly referred to as Independent Garden Centers, Greenhouses and Nurseries. We target accounts of all sizes, from neighborhood garden centers to multi-million industrial greenhouse operations Represents more than 50,000 businesses nationally that generate > $1.3 billion in premiums. Key States Top Ten States: California, Florida, Texas, Oregon, New York, Illinois, Michigan, Pennsylvania, New Jersey, and Ohio. We write in all states, except FL (property) and parts of MA (auto) Outlook This industry continues to be one of the fastest-growing sectors in the nation s economy with growth rate exceeding the GDP Page 10 1 Source: Economic Impacts of the Green Industry USDA Source: ISO Data

11 Segment Relationships Hybrids create opportunities for our program because the traditional underwriting approaches of most national and regional carriers are not designed to accommodate the unique exposures of these multi-faceted operations. Nurseries Nurseries are places where plants are propagated and grown to usable size. They are usually independent commercial growers, with or without greenhouses. They typically have a mix of retail and wholesale. Independent Garden Centers The Independent Garden Center runs from the local mom & pop operation to larger, regional centers, with a primary focus on Retail. Landscapers & Tree Services Greenhouses Greenhouses focus on the largescale production of floricultural products, and represent a significant premium. They are generally wholesale operations with unique property exposures (greenhouses, related equipment) that are often not properly addressed by nonagriculture insurance programs Many Nursery business also provide Landscape services. We can accommodate incidental exposures. Page 11

12 NIP s GrowPro An Overview

13 Greenhouse Growers Wholesale Greenhouse Growers Page 13 A Wholesale Greenhouse Grower grows ornamental flowers, plants, shrubs, and trees in controlled environments. The grower typically has much higher property values than the nursery grower, along with specialized equipment inside of the greenhouse structure. Large growers typically supply plants to big box stores, or on a consignment basis, with significant exposure for stock at non-covered locations.

14 Nursery Growers Wholesale Nursery Growers A Wholesale Nursery Grower generally grows plants and trees in open fields. We offer limits of up to $250,000 for stock in the open, on a Special Form basis, including wind and hail damage. Page 14

15 Retail Garden Centers Retail Garden Centers Page 15 Retail Garden Center are the major customer of the Greenhouse and Wholesale Nursery Grower. In addition to flowers, trees and plants, they typically sell fertilizers, seeds, supplies, and small garden tools. Garden Centers often have greenhouse structures to house plants held for sale. They often have a landscaping division, which presents a unique and different exposure from the typical greenhouse or nursery operation.

16 NIP s GrowPro An Overview

17 The Solution Page 17 The Complete Coverage Solution Commercial General Liability Property Contractors Equipment Crime Business Auto Umbrella Workers Comp (via WorkPro)

18 Program Highlights GrowPro Coverage Coverage for buildings, greenhouses and stock for losses including fire, collapse, windstorms, hail, failure of utility services, and boiler or equipment breakdowns. Coverage limits can be tailored to seasonal fluctuations of crop and inventory Market value coverage on losses of greenhouse crops and stock held for sale Replacement cost coverage on production equipment that s permanently installed. Coverage for business inventory in transit including spoilage coverage for refrigerated inventory while in transit due to refrigeration breakdown Coverage for losses of business income for covered perils that interrupt a crop cycle or prevents a new growing cycle during the period of restoration. Page 18

19 Program Highlights GrowPro Coverage Coverage for outdoor plant inventory held for retail sale up to $250,000, including damage from wind and hail. Pesticide/Herbicide Applicators Liability coverage for operations involving off-site application of chemicals. Flexible coverage can be tailored for hybrid operations : Wholesale greenhouse growers that also have retail garden centers Wholesale Nurseries that have landscaping divisions Garden Centers that have their own greenhouse or nursery growing facilities All lines of coverage, including Property/Liability, Business Auto, Workers Comp, Umbrella, and Nursery Crop coverage Assistance with proper valuation of greenhouses. GrowPro considers the value of equipment within the greenhouse structure such as boilers, generators, cooling equipment and watering systems in establishing the replacement cost of the greenhouse. Page 19

20 Program Highlights GrowPro Coverage Equipment Breakdown Coverage for sudden and accidental breakdowns, including power line surges, overloads, short circuits, motor burnout. Costs associated with losses to building equipment such as costs to repair or replace equipment damaged by breakdown Costs or expenses to limit business income loss or speed of business restoration. Spoilage Coverage for damage to perishable stock for losses due to temperature change. Covered perils include power failures and mechanical breakdowns. Option to increase limit up to $250,000 Back-up power systems and temperature controls required Page 20

21 Program Highlights GrowPro Coverage Enhancements Seasonal Fluctuations of Crop or Inventory can be tailored to accommodate higher stock values during peak seasons Business Income/Crop Income covers losses for covered perils that interrupt crop cycle and/or prevents new growing cycle during restoration period. Limited Pollution Liability Provides coverage for cleanup and removal of pollutants resulting from the insured s application of pesticides and herbicides. Coverage applies to both on- and off-site operations Page 21

22 Program Highlights Holes in Coverage Page 22 Business Income/ Damage to Dependent Locations Damage to dependent locations, i.e. big box stores may result in significant loss of sales income Does current BI insurance coverage include dependent locations? Equipment Breakdown/ Spoilage Damage to equipment that maintains controlled growing environments can result in significant losses Are your clients covered for such damages and the potential damage it may cause to their stock? Greenhouses Are they covered at all? Replacement cost? Stock in Open Many carriers have sub limits for wind and hail damage, if they cover it at all. Stock Away From a Covered Location Many large greenhouse/nursery operations provide stock to big box stores on consignment. Do current policies cover this exposure? Habitational Dwellings Many carriers will not write habitational dwellings on their commercial form, requiring a separate policy

23 Other Considerations Admitted vs. Non-Admitted Carriers GrowPro is underwritten only by Admitted carriers with A ratings by A.M. Best Page 23

24 Submission Requirements Need complete submission, to review all risks Package Completed ACORD application Completed GrowPro Supplemental Application 5 Years Currently-Valued Loss Runs Current MVRs (ability to quote subject to) Declinations Target Pricing Worker s Comp Description of Safety Initiatives, hiring practices, return-towork, and drug-testing programs Exp. Mod. Worksheet (if available) Page 24

25 Supplemental Application Importance of Providing Key Information Pay special attention to property section. Most GrowPro accounts have a variety of building types, including greenhouse structures which will vary in construction type, roof covering and in value per square foot. We can provide coverage, per location, on a blanket basis, but will require a schedule of values for each building Replacement cost of greenhouse structures can range from $5 to over $30 per sq ft. We will provide assistance in establishing adequate property limits. A basic diagram of the property layout is an excellent tool for everyone involved and is appreciated by the insured. Take time to understand your client s peak seasons, to provide proper stock limits and business income limits. Page 25

26 Supplemental Application Page 26 Property Section Types of crops grown? Typically flowering plants, bedding plants, poinsettias, hanging baskets We will not insure fruit or vegetable growers or distributors. Number of growing cycles per year? How long to resume normal operations following catastrophic loss? Maximum value of crop during peak growing season? To determine proper limits for crop, i.e. spoilage from equipment breakdown Is there a backup generator capable of supplying 100% of facility s power requirements? Mandatory. Is there a temperature control alarm system to warn of changes in temperature within the greenhouse? This is typical for greenhouse growers. If not, why? Does client or responsible party live on or adjacent to the premises? Quick response to control losses Does client utilize walk-in coolers for the storage of perishable stock? If yes, what is maximum value of the refrigerated stock? Use standard spoilage form to insure to maximum value of refrigerated stock.

27 Supplemental Application Property Section Is shade cloth/energy curtain at least 2 feet from ignition sources? Verify location of shade cloth, distance from possible ignition sources Highly flammable, can allow fire to spread rapidly Discuss measures grower has considered to reduce risk i.e. flame resistant cloth, fire breaks, fire extinguishers, etc. Are chemicals properly labeled, stored in locked room/cabinet? Growers required to have chemicals labeled and locked in properly ventilated storage room or cabinet. Do potting machines, transplanting machines, and other hazardous greenhouse equipment have proper guards or shields in place? Don t forget Personal Protection for employees (gloves, ear muffs, glasses) Page 27

28 Greenhouses Tempered Glass Page 28

29 Greenhouses Barrel-Vaulted Double Poly Page 29

30 Greenhouses Quonset-Style Page 30

31 Greenhouses Gutter Connected Gable with Polycarbonate Roof Page 31

32 Why NIP? Over 20 years of green industry experience Custom coverage designed to fill gaps left by standard programs Expert claims handling from a dedicated claims director Experienced underwriters who understand your client s business Flexible payment plans Page 32

33 NIP s GrowPro Program Submission Requirements Package Completed ACORD application Completed GrowPro Supplemental Application 5 Years Currently-Valued Loss Runs Current MVRs (ability to quote subject to) Declinations Target Pricing Worker s Comp Description of Safety Initiatives, hiring practices, return-to-work, and drugtesting programs Exp. Mod. Worksheet (if available) Page 33

34 Summary

35 Summary GrowPro Provides Outstanding coverage, tailored to specific needs of Greenhouse Growers, Nurseries, and Garden Centers Strength and reputation of A rated carriers 1 Backed by 20+ years of experience in providing specialized programs tailored to the unique needs of select classes of business Stability through all market cycles NIP awarded Best Practice Designation by TargetMarkets Page 35 1 AM Best A Rated (Excellent) Carriers (Company Size XV)

36 Questions?

37 Thank You! FOR MORE INFO: Piyush Patel (800) x telephone (732) fax