Nursery Insurance
Insurance > Services: Nursery

Sonnenberg Agency, LLC is the foremost agency in Colorado for Nursery Insurance coverage.

The Nursery Insurance policy is a Multi-Peril (MPCI) Crop Insurance policy available to businesses that produce ornamental plants and trees for sale in the wholesale market. Identical to conventional Crop Insurance, all acres with insurable plants and trees in the county must be insured. A nursery that has wholesale sales of nursery plants and trees greater than 50 percent of the nursery's gross income is eligible for coverage. Conversely, a nursery that earns greater than 50 percent of its gross income from retail sales of nursery plants and trees is not eligible for coverage under the Nursery Crop Insurance Provisions. Insurance attaches thirty (30) days after the application is signed by an eligible producer.

The producer (nursery) may elect to insure 50-75 percent, in 5-percent increments, of their determined insurable inventory value. Containers must be at least three (3) inches wide at the largest interior point of the container to be insurable. Winter storage requirements must also be met for plants to be insurable. An adequate and verifiable water source must also be present for the nursery to be insurable. Christmas trees are not insurable.

The insurable inventory value used for Crop Insurance is determined by the Eligible Plant Price List. The inventory used is typically the nursery’s highest liability month. This inventory is entered into the computer program’s database, rendering an insurable value. Federal Crop’s total insurable value, on average, is between 75 - 85 percent of the nursery’s self-calculated value. The difference is due to the nursery’s additional costs associated with preparing the plants and trees for sale. The program uses the lower of the nursery’s wholesale price or the government’s price to determine the insurable value. (The pre-programmed prices are collected and revised yearly by NCIS from a five (5) or six (6) state regional area). The insurable value is then multiplied by the level selected by the producer to determine the insured value.

Due to inventory fluctuations, price changes and the inclusion of additional insurable plants and trees to the Eligible Plant Price List, nurseries inventories are re-entered every crop year. This ensures accuracy and reduces over and under report factors that can effect payment at the time of a claim. This procedure also ensures the most accurate premium amount possible.

Contact Sonnenberg Agency, LLC for quotes and any additional information regarding Nursery Insurance.