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.

1. Webinar
Hydroponic/Urban Farms
The Changing Face of
the Agriculture Industry

2. Today’s Agenda
Intro to NIP Group Industry Overview
Specific Challenges
faced by Greenhouse
Growers, Nurseries,
and Garden Centers
Benefits of
Specialized Coverage

3. Today’s Agenda
Overview of the
GrowPro Program
Things to Look For,
when preparing a
submission
Summary
Q&A

4. About NIP
Group

5. Provide a wide
range of brokerage,
underwriting, and risk
management services
A “top 100” business
insurance and risk
management intermediary
Top
100

6. Entrepreneurial, innovative,
and responsive
Deep knowledge of
key markets

7. 20+ years
of providing agents with exceptional coverage,
competitive commissions, and fast, efficient service

8. About NIP
Programs

9. Develop and manage customized
business insurance for industries
with specialized insurance and
risk management needs
Custom-tailored coverage
for select markets

10. 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

11. 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

12. Develop and manage customized
business insurance for industries
with specialized insurance and
risk management needs
Market-specific expertise

13. Develop and manage customized
business insurance for industries
with specialized insurance and
risk management needs
Stability through all market cycles

14. Programs
Arborists and
Landscaping Professionals

15. Programs
Pet Care Professionals

16. Programs
Heating, Ventilation,
and AC Contractors

17. Programs
Lawn Care Services

18. 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

19. Industry Overview

20. Greenhouse
Growers
Nurseries Garden Centers
Major Segments

21. 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 +)

22. 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

23. 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

24. 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

25. Segment
Relationship

26. 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.

27. NIP’s GrowPro®
An Overview

28. 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.

29. 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.

30. 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.

31. NIP’s GrowPro®
An Overview

32. The Solution
The Complete Coverage Solution
Commercial
General Liability
Property
Contractors’
Equipment
Crime
Business Auto Umbrella
Workers’ Comp
(via WorkPro)

33. 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

34. 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

35. 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

36. 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

37. 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?

38. 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

39. Program Highlights
− Are they covered at all?
− Replacement cost?
Greenhouses
Holes in Coverage

40. Program Highlights
− Many carriers have sub limits for
wind and hail damage, if they
cover it at all.
Stock in Open
Holes in Coverage

41. 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

42. Program Highlights
− Many carriers will not write habitational
dwellings on their commercial form,
requiring a separate policy
Habitational Dwellings
Holes in Coverage

43. 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

44. 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

45. Supplemental
Application

46. 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

47. Types of crops grown?
Typically flowering plants, bedding plants,
poinsettias, hanging baskets
Property Section
− We will not insure fruit or
vegetable growers
or distributors.

48. Number of growing
cycles per year?
Property Section
− How long to resume normal
operations following
catastrophic loss?

49. Maximum value of
crop during peak
growing season?
Property Section
− To determine proper limits for
crop, i.e. spoilage from
equipment breakdown

50. Is there a backup generator
capable of supplying
100% of facility’s
power requirements?
Property Section
− Mandatory

51. 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?

52. Does client or responsible
party live on or adjacent
to the premises?
Property Section
− Quick response to
control losses

53. 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.

54. 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.

55. 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.

56. 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)

57. Greenhouses

58. Tempered Glass

59. Barrel-Vaulted Double Poly

60. Quonset-Style

61. Gutter-Connected Gable with
Polycarbonate Roof

62. • 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

63. 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)

64. Summary

65. • Break into 5
GrowPro Provides:
Outstanding coverage,
tailored to specific needs
of Greenhouse Growers,
Nurseries, and
Garden Centers

66. 1 AM Best A Rated (Excellent) Carriers (Company Size XV)
• Break into 5
GrowPro Provides:
Strength and reputation
of “A” rated carriers1

67. • 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

68. • Break into 5
GrowPro Provides:
Stability through all
market cycles

69. • Break into 5
GrowPro Provides:
NIP awarded “Best
Practice Designation”
by TargetMarkets

70. Questions?

71. Thank You!
Dan Skerston
dskerston@nipgroup.com
(800) 446-7647 x 762
Craig Murphy
cmurphy@nipgroup.com
(800) 446-7647 x 664