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Nursery
Insurance
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. |
