We published a post back in August that focused on the Segments of the Horticulture Industry. In this iteration of the breakdown of the horticulture industry, we’d like to take the focus a bit further and give a more in depth look of what kinds of activities theses segments are involved in.
There are four segments of the horticulture industry: Nurseries, Greenhouses, Independent Garden Centers, and Hybrids of the previous three. Though most may view growers as one big industry, there are fundamental differences in the activities each of the different businesses.
Wholesale Greenhouse Growers
Wholesale greenhouse growers grow ornamental flowers, plants, shrubs and certain kinds of trees, in controlled environments. Typically, a grower will have property values that are much higher than those of a nursery grower. They also have specialized structures and other equipment, including the greenhouse itself, as well as other necessary equipment, such as water, boilers, lighting, temperature control, alarms, and security.
Larger growers also supply plants to big box stores or other venues, on a consignment basis. Of course, this creates significant exposure for their stock at these non-covered locations, as well as potential loss of income, due to interruptions in business at the non-covered location.
Wholesale Nursery Growers
Wholesale Nursery Growers generally grow plants and trees in open fields instead of under a greenhouse structure. Most of these operations are located on the west coast and southern US, where the climate tends to stay warmer year-round.
Retail Garden Centers
Retail Garden Centers are the major customer of the Greenhouse Grower and the Wholesale Nursery Grower. They typically sell related products, including seed, fertilizer, and small garden tools, in addition to flowers, plants and trees and often have greenhouse structures to house the plants that are out for sale. Also, they may have a Landscaping division, which creates a unique and different exposure, from that of the typical greenhouse or nursery operation.
Hybrid operations are a business that are an overlap of any of the three, and in turn, have much higher exposures due to the multiple operations.
Understanding the activities of each of the segments of the horticulture industry assists greatly in being able to write coverage that will best keep the business safe. Building an insurance program from the ground up with the specific needs of not only the industry as a whole, but the segments that make it up, is how to best avoid gaps in coverage that leave an insured vulnerable.
For more information, visit GrowPro.