Why Gift Basket Insurance Protects More Than Business
As a gift basket designer, your main focus is finding products, making deliveries, and earning revenue.
Business is moving along and hopefully increasing each day, but there’s also a chance that an unforeseen situation may come your way. Here are three examples.
Liabilities happen against many businesses, and because your business is food based, there’s a good chance that such a situation will occur. It’s your responsibility to make sure you are protected against these circumstances.
Insurance isn’t a glamorous topic, but it is a service that provides peace of mind while you continue to create beautiful gifts and baskets.
Many insurance carriers call gift basket coverage “crafter’s insurance,” but don’t let that arts-and-crafts name fool you. Such insurance provides you with a minimum $1 million in liability protection and other built-in coverages that let you rest comfortably at night.
Review this business insurance information page to consider your options. You want the media to talk about your gorgeous designs, not a customer seeking damages because of a tainted product.
Why Insurance is a Necessary Investment
When I began my business in 1990, there was no information available anywhere on how to store gift basket products.
So, where would an aspiring designer put all of her inventory? The logical choice for me was in my home attic, as it’s big and easy to access.
The basement was also an option, and if I were in an apartment, I’d also consider turning one of the rooms into my workspace/storage facility.
If you are home based and store inventory within your premises, it’s wise to make sure that all of the contents are insured against theft, fire, or flood. Theft may not occur at home, but the latter two are possible.
Monday’s activities around my home brought the potential for fire too close for comfort. I talked about this on another blog Wednesday and decided to bring this situation here for your benefit.
A fire occurred in the house next to me. It was a tense time as the block was completely shut down to passersby while an army of firemen ended the ordeal.
My home was completely spared of damage, including trapped smoke in the halls and rooms. I cannot tell you how thankful I am that all worked out for me.
When the attic area acted as my storage facility, I estimated the inventory’s worth each year and adjusted my business insurance to cover the contents.
What about you? Is your valuable inventory covered by an insurance policy, or do you hope that what happened to me on Monday won’t occur in your area?
As you bring new baskets, foods, gifts, and supplies into your workspace for holiday orders, be sure to protect the contents against problems that may happen in your facility and situations that you have no control over on other people’s property.
You’ll learn more about your insurance options on this page.
What’s been your business experience with fire, theft, and flood?
Will Your Gift Baskets Go Up in Flames?
What would you do if your business no longer existed due to fire?
That’s what happened Sunday night to a Long Island, New York-based florist. You can read the story at Newsday.com.
Everything was destroyed including the gift baskets also sold by the florist.
When asked about the value of his merchandise, the owner said,
“…he could not estimate his losses. ‘I couldn’t even fathom it,’…”
What a terrible situation.
Do you have a backup plan in case of fire, flood, or other situation that temporarily or permanently halts your business? Here are some things to do now before the week ends.
1. Take photographs of your workspace, inventory, and equipment.
Years ago when my husband’s car was stolen, he had lots of tools in the trunk. The insurance company would not pay him for the loss because he had no proof of ownership.
Even though he no longer had receipts, photographs would have provided proof and allowed him to recoup some of the investment.
2. Review your business insurance to learn which documents are best kept in a location outside of your workspace.
Insurance carriers don’t object to cashing your premium checks as much as they seem to object to paying you for losses. Make sure you understand the policy for your own protection.
3. Install a fire alarm in your workspace.
You may not be able to install a sprinkler system, but a fire alarm will create attention.
The florist’s fire occurred during the Columbus Day weekend. If your office is closed on certain days, perhaps unplugging all equipment before leaving is also wise.
Here’s where to learn more about photography and insurance.
What precautions have you taken against unforeseen circumstances?
Is it Time to Buy Insurance?
“Where can I get insurance? Do I really need it?”
This question is asked at nearly every adult school gift basket class I teach, and I bet new and current designers in future classes will ask the same.
It’s important for every designer to consider investing in the type of business insurance that matches their level of liability.
For us, that includes product liability insurance (even if products are prepackaged) and fire/flood/theft (for your workspace and if you sell on consignment).
You’ll also qualify for other types of coverage, but it’s best to talk to an insurance agent who’s knowledgeable about small business policies to learn your options.
Insurance isn’t a glamorous topic, but neither is the thought of receiving a summons or losing everything you’ve worked so hard to obtain.
This page provides more information on insurance requirements.
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