Whether people are looking for a nice bouquet to brighten up a room at home, a gift for someone special, or big arrangements for a special event, the flower industry is a major part of California’s economy. The Los Angeles Flower District is a major hub of activity in America’s floral industry with businesses in the area producing an estimated billion dollars per year. But when California Governor Gavin Newsom announced mandatory shutdowns to limit the spread of coronavirus, flower shops were among the many types of businesses forced to temporarily close their doors.
Coronavirus Effects in the Flower Industry
In early May 2020, flower shops in Los Angeles were able to begin re-opening, giving them a chance to take advantage of one of their busiest times of the year: Mother’s Day weekend. According to the LA Times, Mother’s Day weekend provides some flower shops with half of their annual earnings. But even though the news about being able to reopen was good, the timing left owners with very little time to prepare.
Even though restrictions on California’s flower shops were lifted shortly before Mother’s Day, those in the flower industry will be feeling the effects of the pandemic for a long time to come. The timing of the outbreak and the mandated shutdowns mean flower shops lost a lot of business at a time that is typically a very busy time of year for the flower industry.
Easter is another major holiday for flower sales and because of the pandemic, sales of things like Easter Lilies took a substantial hit. And with countless events like proms and weddings being cancelled or postponed for the foreseeable future, florists throughout the state are left without revenue from things like corsages, bridal bouquets, and other special floral arrangements that often account for a significant part of their annual sales. Restrictions placed on funerals during the pandemic represented another loss of business for florists.
Business Insurance for Flower Shops
Every business owner knows that having to temporarily close their doors, even if it’s just for a day, can be very costly. These closures don’t just result in lost revenue, they can involve many other costs as well. But they also understand that temporary closures are something that can potentially occur for many different reasons that are beyond their control, such as fires, floods, storms, and power outages. They know to plan ahead by purchasing business insurance policies that will protect them when the unexpected happens.
Business interruption insurance is a type of coverage that can be purchased in addition to a standard business insurance plan and it’s intended to help cover the monetary losses that come with a temporary closure, like employee payroll, rent/lease payments, and relocation fees if necessary. They may also purchase civil authority coverage, which covers these types of expenses if they need to temporarily close because of a government order.
Unfortunately, countless business owners who had to shut down because of the coronavirus pandemic are now having their claims denied for these types of insurance benefits. With so many claims coming in, insurance carriers have been broadly denying these claims, sometimes without even reviewing them first.
Help for Flower Shop Owners
The Wallace Firm is working with California business owners to help them with their business interruption insurance claims. Even if you’ve already made a claim for benefits and been denied, you may still have options. We’re handling these cases on a contingency basis, so you won’t pay any fees unless we help you get the benefits you need. Contact us today to get started.