hydroponic/urban farms the changing face of the agriculture industry
DESCRIPTION
In a hydroponic system, a nutrient-dense water solution circulates through the plants’ roots and replaces the need for soil and traditional fertilizers. This sci fi-esque technique allows farmers and gardeners to grow food in kitchens and basements, on windowsills and roofs.TRANSCRIPT
Webinar
Hydroponic/Urban Farms The Changing Face of the Agriculture Industry
Today’s Agenda
Intro to NIP Group Industry Overview
Specific Challenges faced by Greenhouse Growers, Nurseries, and Garden Centers
Benefits of Specialized Coverage
Today’s Agenda
Overview of the GrowPro Program
Things to Look For, when preparing a submission
Summary Q&A
About NIP Group
Provide a wide range of brokerage,
underwriting, and risk management services
A “top 100” business insurance and risk
management intermediary
Top 100
Entrepreneurial, innovative, and responsive
Deep knowledge of key markets
20+ years of providing agents with exceptional coverage,
competitive commissions, and fast, efficient service
About NIP Programs
Develop and manage customized business insurance for industries with specialized insurance and risk management needs
Custom-tailored coverage for select markets
Develop and manage customized business insurance for industries with specialized insurance and risk management needs
Unique underwriting, loss control, and claims service models, valued by both
clients and insurers
Develop and manage customized business insurance for industries with specialized insurance and risk management needs
Underwritten by major insurers such as Travelers, AIG, Argo, AmTrust
Develop and manage customized business insurance for industries with specialized insurance and risk management needs
Market-specific expertise
Develop and manage customized business insurance for industries with specialized insurance and risk management needs
Stability through all market cycles
Programs
Arborists and Landscaping Professionals
Programs
Pet Care Professionals
Programs
Heating, Ventilation, and AC Contractors
Programs
Lawn Care Services
Programs Employment Practices Liability Insurance
GlassPro® – for Glass Dealers and Installers
GrowPro® – for Greenhouses, Garden Centers and Nurseries
HVACPro® – for AC, Refrigeration, Heating or HVAC Contractors
IrrigationPro™ – for Providers of Irrigation and Pesticides for Lawns, Crops and Golf Courses
InteriorScapePro™ – for Contractors Providing Indoor Landscaping and Plant Maintenance
LandPro®/TreePro™ – for Landscapers and Tree Services Providers
LawnCarePro™ – for Lawn Care Service Providers
LightScapePro™ – for Lightscaping Contractors
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’ Comp
Industry Overview
Greenhouse Growers Nurseries Garden Centers
Major Segments
Compelling Market Opportunity
• Attractive niches across three distinct segments
Large, highly-varied and fragmented market
• Premium ranges by sub segment between $25,000 and $45,000.
Target Market represents more than $1.3 billion in premiums
Target market represents nearly 50,000 businesses nationally
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
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.
Source: 1. Economic Impacts of the Green Industry – USDA 2005 2. ISO Data
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
Segment Relationship
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.
Greenhouses Greenhouses focus on the large-scale 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 non-agriculture insurance programs
Independent Garden Centers Independent Garden Centers run from the local “mom & pop” operation to larger, regional centers, with a primary focus on Retail.
Landscapers & Tree Services Independent Garden Centers run from the local “mom & pop” operation to larger, regional centers, with a primary focus on Retail.
Hybrids 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.
NIP’s GrowPro®
An Overview
Greenhouse Growers
Wholesale Greenhouse Growers
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.
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.
Retail Garden Centers
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.
NIP’s GrowPro®
An Overview
The Solution
The Complete Coverage Solution Commercial
General Liability Property Contractors’ Equipment Crime
Business Auto Umbrella Workers’ Comp (via WorkPro)
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.
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 – in establishing the replacement cost of the greenhouse
− Boilers, generators, cooling equipment and watering systems, etc.
Program Highlights
GrowPro Coverage
Program Highlights
• 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.
Equipment Breakdown
• 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
Spoilage
GrowPro Coverage Enhancements Seasonal Fluctuations of Crop or Inventory
• Can be tailored to accommodate higher stock values during “peak” seasons
• Covers losses for covered perils that interrupt crop cycle and/or prevents new growing cycle during restoration period.
• 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
Business Income / Crop Income
Limited Pollution Liability
Program Highlights
Business Income/ Damage to Dependent Locations
Program Highlights
Holes in Coverage
− 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?
Program Highlights
− 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?
Equipment Breakdown / Spoilage
Holes in Coverage
Program Highlights
− Are they covered at all?
− Replacement cost?
Greenhouses
Holes in Coverage
Program Highlights
− Many carriers have sub limits for wind and hail damage, if they cover it at all.
Stock in Open
Holes in Coverage
Program Highlights
− Many large greenhouse/nursery operations provide stock to big box stores on consignment. Do current policies cover this exposure?
Stock Away From a Covered Location
Holes in Coverage
Program Highlights
− Many carriers will not write habitational dwellings on their commercial form, requiring a separate policy
Habitational Dwellings
Holes in Coverage
Other Considerations
Admitted vs. Non-Admitted Carriers GrowPro is underwritten only by Admitted carriers with “A” ratings by A.M. Best
• Only covers insured for operations specifically described in the description of hazards section of GL policy
Classification Limitation Endorsement
• Markets have occasionally reduced it to 90%, even 80
GL is usually 100% minimum earned
Submission Requirements
• Completed ACORD application • Completed GrowPro
Supplemental Questionnaire • 5 Years Currently –
Valued Loss Runs • Current MVRs
(ability to quote subject to) • Declinations • Target Pricing
Package
Need complete submission, to review all risks
• Description of Safety Initiatives, hiring practices, return-to-work, and drug-testing programs
• Exp. Mod. Worksheet (if available)
Worker’s Comp
Supplemental Application
Importance of Providing Key Information
A basic diagram of the property layout is an excellent tool for everyone involved and is appreciated by the insured.
Pay special attention to property section
• Most GrowPro accounts have a variety of building types, including greenhouse structures which vary in construction type, roof covering and in value
• 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 more than $30 / sq. ft.
• We will provide assistance in establishing adequate property limits.
Replacement cost of greenhouse structures can range from $5 to more than $30 / sq. ft.
• For establishing proper limits for stock and business income
Types of crops grown? Typically flowering plants, bedding plants, poinsettias, hanging baskets
Property Section
− We will not insure fruit or vegetable growers or distributors.
Number of growing cycles per year?
Property Section
− How long to resume normal operations following catastrophic loss?
Maximum value of crop during peak growing season?
Property Section
− 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?
Property Section
− Mandatory
Is there a temperature control alarm system to warn of changes in temperature within the greenhouse?
Property Section
− This is typical for greenhouse growers. If not, why?
Does client or responsible party live on or adjacent to the premises?
Property Section
− Quick response to control losses
Does client utilize walk-in coolers for the storage of perishable stock?
Property Section
− If yes, what is maximum value of the refrigerated stock?
− Use standard spoilage form to insure to maximum value of refrigerated stock.
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.
Property Section
Are chemicals properly labeled, stored in locked room/cabinet?
− Growers required to have chemicals labeled and locked in properly ventilated storage room or cabinet.
Property Section
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)
Greenhouses
Tempered Glass
Barrel-Vaulted Double Poly
Quonset-Style
Gutter-Connected Gable with Polycarbonate Roof
• 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
Why NIP?
• Experienced underwriters who understand your client’s business
• Flexible payment plans
Submission Requirements
NIP’s GrowPro® Program
Package Worker’s Comp • Completed ACORD application • Completed GrowPro Supplemental
Application • 5 Years Currently-Valued Loss Runs • Current MVRs
(ability to quote subject to) • Declinations • Target Pricing
• Description of Safety Initiatives, hiring practices, return-to-work, and drug-testing programs
• Exp. Mod. Worksheet (if available)
Summary
• Break into 5
GrowPro Provides:
Outstanding coverage, tailored to specific needs of Greenhouse Growers, Nurseries, and Garden Centers
1 AM Best A Rated (Excellent) Carriers (Company Size XV)
• Break into 5
GrowPro Provides:
Strength and reputation of “A” rated carriers1
• Break into 5
GrowPro Provides:
Backed by nearly 25 years of experience in providing specialized programs tailored to the unique needs of select classes of business
• Break into 5
GrowPro Provides:
Stability through all market cycles
• Break into 5
GrowPro Provides:
NIP awarded “Best Practice Designation” by TargetMarkets
Questions?
Thank You!
Dan Skerston [email protected]
(800) 446-7647 x 762
Craig Murphy [email protected]
(800) 446-7647 x 664