Business insurance

N.W. Gean

N.W. Gean

Joined
Oct 10, 2018
Messages
463
For the folks that run their knife making as a business, what are you doing for insurance?

I've been searching high and low here and elsewhere to find a company that will carry a knife maker, to no avail so far. State Farm says they'll get back to me tomorrow, but I've got a feeling about the answer. It seems crazy to run without insurance, I'd like to avoid doing so.
 
You might need to spin it a little. Could be easier to insure your kitchen supply company.
 
Richard338 said:
Agreed, don't say camping equipment. But cutlery is still accurate. Deemphasize your line of push daggers.
Click to expand...
That I agree with, and the crazy thing is that I've been emphasizing the fact that I don't make combat knives, have no plans to, and won't allow shop visitors. But a "weapon" is a "weapon" :rolleyes:
 
Yes, it can be an uphill battle. My work computer blocks Coop's photography as a weapons site. Anyway, good luck. Maybe some others will have tips.
 
That is a broad coverage. What loss or risk specifically are you trying to manage? Liability? Income loss? Other?

I don’t have any business insurance. For me, self insurance is best.
 
Mostly against liability. This is not my primary income, so if I have to stop for a while, it doesn't matter.
 
I've got an amazing policy that covers both liability (2m iirc) and property (my shop and equipment). It took a bit of shopping around as well for me, and I'm blessed to have found the one I did as it runs about $200/mo. Another instance agent I spoke to was amazed at the coverage I got for the price I pay. I was using state farm while operating a sharpening business but when I switched to manufacturing (making) they wouldn't cover me any more. I'll pm you the contact 👍
 
You need to check with a business insurance company, not a homeowner's type. Business insurance will cover pretty much everything.

Wording is very important. You are a craftsman manufacturer of cutlery ... not a knifemaker. You sell cutlery at trade shows and craft shows, not at flea markets and Knife Shows.

Now, the big question is - why do you want business insurance? If it is just to cover your shop from burning down, you don't need liability insurance. Your homeowners will issue a rider on the shop if worded correctly.
If it is to cover an injury to someone in your shop, is there a real chance that one will occur if you don't have visitors?
If it is to cover someone saying they were cut by one of your knives that has loon been determined to be not enforceable by the nature of it being a cutting tool.

Business loss insurance is a different thing and should be easily purchased form a good business insurance company ... but it isn't cheap.
 
Stacy E. Apelt - Bladesmith said:
Now, the big question is - why do you want business insurance?
Click to expand...
Good question -- the answer is that I'm a very risk averse person, and people like lawsuits. Filing the papers to make this a business is one of the riskiest things I've ever done.

I don't plan on having any visitors to my shop. I'm not good enough to teach 😄

I'm also a little worried about my homeowners insurance cutting off for simply owning a business. I'm still looking into that. If nothing else, I'll need homeowners that won't void over that.
 
Take a deep breath and relax. Millions of people run a business from home. That doesn't void their homeowners unless they DO in person business with customers from home.
I ran my knifemaking as a business for years before the accountant and the IRS said to just call it a hobby and close the business. My homeowners knew I had a shop and it was covered as an "other building".

What you need to do is talk with a knowledgeable insurance person who isn't trying to sell you a policy. Get with Josh (REK) and get in touch with his contact person.
 
If you are operating out of a home shop, make certain that your local zoning laws allow for a "light manufacturing" business operating out of your home.
Many years ago, when I looked into converting the hobby to a legit business, I ran into just this.
That bears a lot on getting insurance and whether it would be valid for a claim.
Like Stacy wisely advises, speak with someone actually in the know from your locale.
 
fitzo said:
If you are operating out of a home shop, make certain that your local zoning laws allow for a "light manufacturing" business operating out of your home.
Many years ago, when I looked into converting the hobby to a legit business, I ran into just this.
That bears a lot on getting insurance and whether it would be valid for a claim.
Like Stacy wisely advises, speak with someone actually in the know from your locale.
Click to expand...
Luckily I live out in the county, so there wouldn't be much issue there.
 
Update to this, REK's insurance agent helped me find a local broker that was able to find a plan for me. 793 a year, covers liability and a few grand for my tools. If I sell more than 10k in a year, my premiums go up, but that would be a super year for me, so I'm not worried about it.
 
N.W. Gean said:
Update to this, REK's insurance agent helped me find a local broker that was able to find a plan for me. 793 a year, covers liability and a few grand for my tools. If I sell more than 10k in a year, my premiums go up, but that would be a super year for me, so I'm not worried about it.
Click to expand...
Still a lot to think about.......
 
N.W. Gean said:
I hear you, friend. Turning this thing into a business is adding a lot of complications. What do you have in mind?
Click to expand...
Idk......?
I do feel that you Need to sell more knives, if you are paying $800/year

less than a thousand dollars a month in sales, sounds more like a hobby.
 
You must log in or register to reply here.
Back
Top