By Traci Dooley
National Agency Sales Director for Hortica®, a brand of the Sentry Insurance Group
With a new year upon us, it’s time to re-evaluate your business and seize the opportunities ahead—while navigating potential challenges.
Staying ahead of risks and updating your insurance coverage is just as vital to your success as providing excellent customer service, conducting quality work, and growing a superior product.
At Hortica, we’re here to help you identify and manage emerging challenges and opportunities so your business can continue to succeed. Below, I’ve identified five key trends that will impact our industry in 2025, and offer practical steps you can take to help protect and grow your business.
1. Rising commercial auto costs
Delivering flowers, hauling sod, and transporting equipment—these daily tasks are part of the job. But driving is becoming an even bigger loss exposure for companies like yours.
Every industry is facing rapidly climbing commercial auto liability costs. Here are three primary reasons:
Higher repair and replacement costs
Even a minor accident today often requires auto shops to replace complex sensors and cameras, increasing repair and replacement costs. Not only do parts cost more to replace, but it also takes longer to perform those repairs due to supply chain issues and labor shortages.
Greater frequency of distracted driving
According to the National Safety Council, about 44% of people text while driving—even though 96% of people think it’s dangerous.
Legal system abuse
Attorneys, plaintiffs, and now third-party investors are increasingly using lawsuits to seek compensation beyond the proceeding’s original intent. We’re seeing higher plaintiff trial win rates and a rise in nuclear verdicts—awards of $10 million or more.
Having commercial auto insurance is critical for your business. Manage your commercial auto risk and reduce potential losses by implementing these tactics:
Provide consistent driver training
Work with your insurance provider to design a robust driver safety training program. Enforce it with clear policies, active supervision, and timely corrective actions.
Hire safety-focused drivers
Perform thorough background checks, review driving histories, and conduct road tests to help ensure your new drivers are skilled, dependable, and committed to safe practices.
Appoint a safety leader
Assign a team member to oversee risk reduction efforts and enforce all safety protocols across your operation.
Embrace technology
Install telematics to track vehicle performance and driver behavior. Equip vehicles with dash cams to provide evidence in accidents and potentially reduce liability if your driver isn’t at fault.
Implement crash management procedures
Knowing what to do in the event of an accident can help save lives, reduce claims costs, and maintain your reputation. Your insurance provider can help you create an effective strategy.
2. Continuing cybersecurity threats to horticulture technology
Cyber criminals aren’t just targeting your data anymore—they’re also impacting the technology you rely on to power your business operations, such as water supply systems and environmental controls.
How are cyber criminals getting access? There are four common types of cyberattacks against businesses:
Ransomware
Also known as malware, ransomware is malicious software introduced to your system that restricts access to files, often by encryption.
Phishing
Phishing scams involve sending emails or other messages that look legit to trick you into giving up information, money, or access to your devices.
Fraudulent impersonation:
This occurs when an attacker impersonates someone—such as an owner, manager, or vendor—in an attempt to gain data or money.
Man-in-the-middle
An attacker intercepts sensitive client data while it’s in route to your business, often through unsecured websites or networks.
Help reduce your cyber risk
You and your employees can help combat all of these with proper training and company-wide mitigation strategies.
You can help protect your business by:
Training your team to identify and respond to cyber threats.
Working with a security expert to ensure your cybersecurity protocols meet the latest standards and best practices.
Investing in cyber liability insurance to help cover the cost of repairing systems, recovering data, or managing ransomware demands.
3. Increasing climate change risks
Climate change continues to pose significant challenges in this industry, driving higher temperatures and more frequent and intense severe weather events across broader regions. Combined with rising property values and inflation, these factors are fueling an increase in billion-dollar weather events.
Over the past 12 years, the number of these costly events in the U.S. has nearly doubled, reaching 28 in 2023. As of November 1, 2024, the National Oceanic and Atmospheric Administration (NOAA) reported 24 such disasters in 2024.
Help prepare your business for severe weather events and natural disasters by taking these proactive steps:
Establish a weather emergency plan.
Regularly maintain your structures and test irrigation systems.
Update your property insurance to reflect any new structures or equipment.
Consider business interruption insurance to help cover lost income and expenses during temporary closures caused by severe weather.
4. Investing in indoor growing
As technology advances—and climate change leads to increased weather volatility—many horticultural businesses are adopting controlled environments for growing their stock. This approach offers several key advantages:
Enabling year-round cultivation
Shielding crops from extreme weather, such as hail and heat
Reducing the need for extensive land
Capitalizing on the demand for locally sourced products
Controlled environments allow growers to cultivate crops in any location, including urban areas. This proximity significantly shortens farm-to-table delivery times by eliminating many of the delays associated with harvesting, storing, and transporting products from rural field production.
That said, growers in controlled environments face risks similar to traditional operations, and can protect their investments with tailored insurance coverage. Key coverages include:
Commercial property insurance
Helps cover damage to structures like greenhouses, vertical farms, or warehouses caused by disasters, fires, or vandalism. It also helps pay for repair or replacement of equipment like HVAC systems, lighting, and irrigation systems, along with crops lost due to equipment failure.
Business interruption insurance
Provides compensation for lost income and operational expenses when covered events like fires or storms temporarily halt production.
Cyber insurance
Helps shield your business against cyber threats, especially for growers relying on smart systems to manage and monitor controlled environments.
5. Navigating the impact of a new administration
With a new presidential administration taking office in January 2025, the horticulture industry faces some big unknowns. Two key concerns are:
Potential tariffs that could increase the price of imported goods.
Labor shortages influenced by changes to the Farm Bill and H2A/H2B labor programs.
Tariffs may raise costs and interest rates, impacting your supply chain. Meanwhile, delays in updating the Farm Bill and a stricter stance on immigration could deepen existing labor shortages, which are already a challenge for greenhouse operators.
How to prepare
Stock up early on essential supplies to hedge against rising costs.
Focus on employee retention by creating competitive work environments and fostering loyalty among your team.
Horticultural industry outlook
There are plenty of ongoing risks and unknowns, but the industry as a whole is adapting well to these challenges by leveraging technology and innovating new ways to serve customers.
The key is mitigating risks through education, safety training, and insurance coverage. At Hortica, we can help you and your business with all of these strategies. If you have any questions about insuring your business or would like to review your current policy, contact us today or request a quote.
Together we can work toward a successful 2025 and beyond.
Help protect your horticultural business with risk-relevant insurance coverage
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Take advantage of the demand for sustainable products
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