Nurseries and garden centers were among the rare sectors to emerge from COVID-19 with a promising trajectory.
Four years ago, this was an industry facing an uncertain future. What would a new age of technology mean for nurseries? Would younger generations have an interest in gardening? How could these businesses keep up with sustainable practices despite many of them being small, family-owned shops?
In the years since, we’ve seen growth on a level that not many expected. An estimated 18 million people started gardening for the first time during the pandemic, according to the National Gardening Association. What had long been considered a niche hobby had suddenly become mainstream and popular once again, leading to a surge in demand that some nurseries could not keep up with.
But the garden center industry is still thriving. As of 2021, there were approximately 60,000 nursery businesses in the United States employing more than 157,000 people – and that number only accounts for retail locations. Thousands more people work in growing and supply for nurseries, making this a ripe (pun intended) opportunity for brokers looking to expand their portfolio.
How a pandemic revitalized the nursery business
While it’s true that many people picked up gardening to pass the time, others had more intentional reasons for doing so. According to a study from the University of California (Davis), more than 50 percent of survey respondents used gardening as a way to decompress and also safely socialize with others, and 80 percent did so out of concern for food supply.
Fast forward to 2024 and there are now more than 9,200 nurseries and garden centers in the United States with the average business reporting $3-4 million in annual sales. The U.S. Bureau of Labor Statistics is bullish on employment growth in this sector, as well, reporting nursery and garden center jobs up 3.6 percent in 2023.
Some industries boomed and then busted after the pandemic – but nurseries and garden centers continue to show promising signs for 2024 (and beyond). This is an industry worth $20 billion annually and some experts believe we’re at an inflection point, with the possibility of decline low and the potential for further growth being strong.
There are a few key factors that have contributed to this sharp rise of gardening, which has ushered in a “golden age” of garden centers and nurseries:
- Growing your own food is hot: Annual spending on food gardening has increased every year since 2020, according to Markets & Markets. Fruit and vegetable seed sales are expected to continue growing through 2025.
- Demand remains high for gardening: As it turns out, it wasn’t a fad. Four in five U.S. households (80 percent) participated in gardening during the pandemic and sales held steady through 2023.
- There’s a new generation coming: Millennials and Gen Z said they plan to spend more money (and time) gardening than older generations, according to data through 2023.
Ok, so we know there’s momentum and opportunity. We know there’s desire on the part of consumers who want to keep growing at home and keep their thumbs green.
What does that mean for the thousands of nursery businesses across the country, many of whom are small shops, short staffed and may not be sure what they need in terms of insurance? Let’s talk about it.
What are the unique challenges and risks of running a garden center?
Did you know that most businesses, especially small businesses, don’t know what types of coverage they need? Unfortunately, many business owners don’t fully understand insurance requirements and regulations until it’s too late – but as a broker, you have an opportunity to help educate and position your clients for success.
We just mentioned the profitability in the garden center and nursery industry – upwards of $20 billion in annual sales is rather impressive – and a business that is properly insured is a business that can operate confidently.
What risks might nursery businesses face?
Liability claims
Having solid liability coverage will protect your clients’ business if they’re deemed responsible for property damage, injury or other accidents. These may include claims that occur on your property, any damages caused by products sold, or claims against advertising or marketing done on your behalf.
Damage caused by storms or fire
Unexpected events like severe weather or fire can have a significant impact on a business, particularly for a garden center. Crops are the lifeblood of the business and any loss can be catastrophic; having clients covered will give them peace of mind that they can get back on their feet quickly with great support.
Loss of crops
Any loss of crops – due to weather, fire, or other significant events – is a major challenge for nurseries. Supporting clients with top-rated coverage means they will have great resources and a policy that has their back during difficult times.
Injury to employees or customers
Slips, falls, and other on-site accidents are not uncommon in the industry. Workers may have to climb ladders to reach certain products or use equipment to retrieve or move something, which always carries risk.
Transportation or delivery accidents
Picking up shipments, delivering orders to customers…any time a commercial vehicle is involved, there is a risk of accident or injury. Making sure all company vehicles (and operators) are properly covered strengthens the business in the event of an accident.
As the nursery industry continues to grow, your clients need expert support
LandPro is the specialized industry-specific insurance your garden center clients need. Sure, there are other insurance products available – but LandPro has the most experience (35-plus years) offering comprehensive and custom coverage to nursery businesses.
Simply put, LandPro has its green thumb on the pulse of the gardening industry. With coverage that’s rated “A+” by A.M. Best, you can support clients with the security needed to grow their nursery business and give them access to LandPro’s wealth of resources covering trends, business management, risk mitigation and more.
Why is it important to have the right coverage…and, what are those coverages?
General liability coverage
This coverage protects your client and their business against lawsuits or any claims that occur on their premises (or as a result of their/employee actions). General liability covers the business, the premises, and the products.
Commercial property and auto coverage
Any structures or property that directly contribute to the business – in this case, greenhouses, equipment, etc. – are covered under commercial property including losses incurred due to damages. Vehicles owned and/or operated by the business and its employees are covered by commercial auto.
Workers’ compensation
Employee risks are among the most prevalent in the nursery and garden center industry. Exposure to chemicals, operating machinery and heavy equipment, and other accidents (slips, falls, etc.) are ever-present. Workers’ compensation is required by most states and covers medical expenses, lost wages and rehabilitation if needed.
Errors and omissions insurance (E&O)
Garden centers are responsible for providing customers with accurate product information and instructions, from plant types to packaging and more. Misleading claims, false statements and other errors can mean the business is held liable, making E&O coverage essential.
LandPro is the trusted insurance partner for garden centers
Every business wants to grow and prosper, and this is a big moment for nurseries. Clients want to be informed and protected, which puts an emphasis on getting them the right coverage. LandPro understands the ins and outs of the gardening industry and provides best-in-class insurance – meaning you’re not selling an off-the-shelf product.
Garden centers insured by LandPro have access to:
- More than 35 years of industry-specific experience
- Tailored risk management for every client
- Educational resources for training, safety and more
- Claims management that’s hands-on and user-friendly
Now is the time to equip garden centers with great insurance that has their back when they need it. Want to learn more? Get in touch with a member of the LandPro team today.
