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Home >=20 Magazine = > Mid-May=20 2009

Online Only: Be Prepared For Mother Nature

Hortica Insurance shares tips for preparing your greenhouse = business=20 for natural disasters.

By Nancy Zollo

May 2009

Hurricanes. Floods. Earthquakes. Wildfires. Tornadoes.

At any time, Mother Nature can wreak havoc on life and = property, no=20 matter where you=92re located. Recent hurricanes in the Gulf of = Mexico and=20 floods throughout the Midwest have many greenhouse business owners = reviewing their insurance needs to determine how to best protect = their=20 property and business records. A natural disaster can wipe out = everything=20 in a matter of minutes. So being prepared and properly insured can = make=20 all the difference in how a business recovers from a partial or=20 catastrophic loss.

Preparedness

To reduce the impact of a possible loss, it is of utmost = importance to=20 have an emergency procedure in place for the protection and safety = of all=20 employees and business property. Emergency instructions, = evacuation=20 guidelines and a chain of command must be clear and understood. = The=20 procedures should be reviewed and practiced quarterly to allow for = adaptations due to changes in the business operations and staff. =

Business files and records should be backed up on a regular = basis with=20 copies kept off site. Having this information available after a = loss=20 assists in the restoration of operations, and it provides = necessary=20 documentation for an insurance claim.

Determine the areas where electrical power should be turned = off, and in=20 what order. Make sure all circuit breakers are labeled. Prepare = for an=20 extended power outage by renting or purchasing a generator. Make = sure you=20 have a hand pump or an OSHA-approved gas can to supply fuel to the = generator and motor vehicles in the event of a loss of power. Keep = all=20 emergency equipment in proper working order.

Check all greenhouse bracing to make sure it is secure. Address = drainage systems to allow for removal of excess rainwater or = flooding.=20 Pick up loose items around the property that could become airborne = during=20 a storm. Fill trucks and trailers with valuable plants and park = them=20 alongside sturdy buildings. Make sure to have an updated inventory = of all=20 plants that are on the premises.

These are just a few of the steps that should be taken to = mitigate the=20 possibility and severity of loss and ensure the business can = resume=20 operations as quickly as possible.

Hurricanes & Rising Waters

Hurricanes can cause widespread damage that affects many = states.=20 Following Hurricane Ike last September, Hortica Insurance & = Employee=20 Benefits adjusted claims in Texas, Arkansas, Missouri, Illinois, = Indiana,=20 Kentucky and Ohio.

Greenhouse structures can be designed to withstand hurricane = force=20 winds up to a low Category 3 with minimal to moderate damage. It = is=20 recommended that growers located in hurricane-prone areas consult = with a=20 structural engineer before investing in replacement or new = structures.=20 Local building codes may satisfy the authorities, but they won=92t = protect=20 your business from catastrophic damage.

When a hurricane strikes, high winds can cause a great deal of=20 immediate damage. However, the flooding that often accompanies = hurricanes=20 can be more damaging than the hurricane itself. Flood damage is = not only a=20 risk in hurricane zones, but floods and flash floods happen in all = 50=20 states. Just an inch of water in your business can cost thousands = of=20 dollars of damage.

Flood insurance is available through the National Flood = Insurance=20 Program (NFIP). Property owners in all areas should ask their = agents if=20 their communities are eligible for the federally-backed program.=20 Non-residential property owners can insure their buildings up to = $500,000=20 and contents up to $500,000.

Nursery businesses that predominately sell plants in the = wholesale=20 market also are eligible for Federal Nursery Crop Insurance. = Included=20 among the many perils covered by Nursery Crop policies are losses=20 resulting from adverse weather conditions, including flooding due = to=20 excessive rain. Coverage is available to qualified growers on a = year-round=20 basis after a 30-day waiting period. Therefore, it is critical for = growers=20 to apply for this insurance well before hurricane season.

Recovery

After a natural disaster has occurred, contact your agent = immediately.=20 Lack of immediate notification could impair your carrier=92s = ability to=20 conduct a timely and thorough investigation, which is needed to = mitigate=20 your losses and protect your interests.

Take photos or video of damaged property to help the adjuster = process=20 your claim. Make a detailed list of the damaged items, including = their=20 value and supply receipts if possible. Most importantly, keep your = safety=20 and the safety of your employees as the highest priority and = don=92t allow=20 anyone inside a highly damaged or unsafe structure.

Know Your Insurance Policy

It is essential that you review your insurance policy to make = sure you=20 have protection of any buildings, structures, vehicles, equipment, = personal property and crops that are part of your business. When = insuring=20 your buildings and greenhouses, it is important to consider all=20 permanently installed equipment such as boilers, coolers, pumps,=20 irrigation or environmental controls. If you have renovated = existing=20 buildings or added new structures, it is important to keep your = agent=20 advised so that your policy can be updated.

Catastrophic losses can severely interrupt your growing = operation. Even=20 with the best preparations, it may be difficult to resume shipping = or=20 filling your customer=92s orders following a devastating loss. = Business=20 income or crop income coverage is an optional coverage that would = pay for=20 lost profit and continuing necessary expenses when your business=20 operations are suspended. Ask your insurance agent about the = availability=20 of this coverage and when it would be applicable.

Natural disasters caused by Mother Nature are a part of life. = The=20 preparatory steps you take, a prompt response and effective = communication=20 will, however, help you recover quickly and successfully after a=20 catastrophic loss.

About the author:

Nancy Zollo is a senior claim representative at Hortica = Insurance &=20 Employee Benefits, a 120-year-old mutual insurance company = specializing in=20 providing business insurance, employee benefits and personal = insurance to=20 the horticulture industry. She can be reached at Nzollo@hortica-insurance.com= =20 or 800-851-7740.

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