Understanding the Factors That Affect Workers’ Compensation Costs for Your Greenhouse


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As a greenhouse business owner, you’re always looking to manage your costs. That includes examining your sales figures, inventory, and employee wage structure against other factors such as rising inflation and insurance.  

At Hortica, I work with companies across the horticultural and floral industries. Some owners know every detail of their policy and the factors that play into their premiums. Others just want to get to the bottom line. 

Whichever approach you take, workers’ compensation is a crucial area to consider. Let’s explore strategies to potentially reduce your costs specifically for your greenhouse business. 

Workers’ Compensation Claims in the Greenhouse Industry

Your greenhouse operation presents a unique set of risks for both you and your employees. Let’s take a look at some common risks that can translate into workers’ compensation claims: 

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  • Physical labor: Your employees lift, carry, and move heavy objects, such as plants and soil bags. This physical exertion can lead to musculoskeletal disorders, strains, and sprains. 
  • Exposure to heat and humidity: While plants might thrive in the balmy conditions of a greenhouse, it can be a difficult environment for your workers. High temperatures and humidity levels can put them at risk for heat-related illnesses such as heat exhaustion and heat stroke. 
  • Use of machinery and tools: Pruning shears, cultivators, and heavy machinery are common tools used in this industry. But when these tools malfunction or are improperly used, they can cause cuts and other injuries. 
  • Repetitive tasks: Planting, pruning, and harvesting are all key tasks. But they’re also repetitive. Over time, this repetition can strain the body, causing conditions like tendonitis or carpal tunnel syndrome. 
  • Slip, trip, and fall hazards: With the watering and misting needed in a greenhouse, floors can quickly become wet and slippery. Uneven flooring or cluttered walkways also contribute to slip-and-fall risks. 

Factors That Influence Workers’ Compensation Costs

Understanding the factors that influence workers’ compensation premiums can make a big difference for your greenhouse business. Let’s explore some of them: 

  • Claim frequency: More claims equal higher costs. The more often your employees are getting hurt while on the job, the more you may have to pay in insurance.  
  • Claim severity and duration: Not all claims are equal. A sprained ankle might be a minor inconvenience, but a severe injury that requires surgery and months of recovery can be a major financial blow. 
  • Industry classification: Greenhouse work is considered a higher-risk occupation, which means you’re likely to pay more for insurance than your white-collar counterparts. 
  • Payroll size: As your payroll grows, so do your insurance costs. 
  • Experience rating: A history of frequent or severe claims can result in higher premiums. On the flip side, a clean loss history with little or no claim frequency can result in a premium credit. Your insurer looks at your track record to determine how much of a risk you pose. 

Take Control of Your Workers’ Compensation Costs

You play a role in the cost of your workers’ compensation coverage. These proactive steps can help you save money while keeping your employees safe. 

      1. Implement a comprehensive safety program 

Train your employees in proper lifting techniques, equipment handling, and safe navigation of the greenhouse environment. Provide them with the right protective gear and ensure they understand how to use it effectively.  

      2. Invest in ergonomic equipment and tools 

Investing in ergonomic equipment and tools can help reduce repetitive strain injuries. Stress the importance of early reporting of injuries and provide prompt medical care to help reduce time away from work. 

      3. Understand your premium calculations 

It’s important to understand how your workers’ compensation premiums are calculated. Most insurers use a formula that accounts for your payroll, industry classification, and experience rating. Accurate payroll reporting and staying informed on industry trends are key to optimizing your workers’ compensation coverage. 

      4. Effectively manage your claims  

Effective claims management is a critical component of controlling workers’ compensation costs. Work closely with your insurance provider to investigate claims, implement return-to-work programs, and explore care solutions. 

      5. Focus on injured worker well-being 

When it comes to care solutions, don’t focus solely on the physical injury. An injured worker’s mental and emotional well-being can significantly impact recovery and a timely return to work. Identifying mental, social, and emotional hurdles early in the process translates to quicker, targeted support to help your employees throughout their recovery. Check in with injured employees often throughout their recovery. 

      6. Find an insurance provider who knows the greenhouse and growing industries 

A knowledgeable insurance provider specializing in the horticultural industry can provide valuable guidance on risk management, safety training, and navigating claims. These are all qualities that can help you manage overall injury costs. 

Keeping Your Team Safe and Your Finances Secure

Understanding what affects your workers’ compensation costs—and taking steps to manage them—puts you in charge of an important part of your budget.  

By focusing on safety, managing risks, supporting your employees, and planning your insurance wisely, you not only protect your team but also make sure your business stays strong financially. These tips can help you get started, but talk with your team and local experts to create a plan specific to your business. 

If you have questions related to workers’ compensation, please contact me. I’m happy to help.



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