Insurance for knives?

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guitarguy1

Joined
Apr 14, 2009
Messages
96
Howdy folks, I'm building a knife business up while working my regular job full time. For those of you who sell your knives do you carry insurance for something like a failure of the knife? I'm just not sure what to look for and would like to have an idea of what it is I need before talking to an insurance salesman who will try to to sell (not knocking folks just making a living, simple statement of fact).

I know my father has business insurance for his clock repair business, but he has customers walking into his building. I'm planning on selling online and through my local gun shop and general sporting shows.

Basically, outside of a business license I'm not sure what I need. Any help?
 
I have liability and property coverage through state farm... About $100/month. I do everything online as well
 
Postal Insurance went up about 350%, a couple of years ago....and likelihood of ever collecting is nill...
Good luck.....better off not attracting attention.....do without the insurance...
 
The best insurance against knife failure is:

A. Develop an excellent heat treat procedure for the particular steel, using the equipment you have.

B. Make sure the design of the knife and the blade geometry is appropriate for the kinds of work it will do.

C. Make sure your fitment and assembly techniques are top notch.

D. Test, test, test your knives doing the tasks the knife will be expected to do.

E. If the buyer isn't sure, make sure you inform them for what kinds of uses the knife is appropriate so there is no misunderstanding.
 
I understand all of that, I finally got the money together for an Evenheat oven with a rampmaster controller and a few other bells and whistles. My biggest concern is that I know when I was younger I did stupid things with knives, and I broke a few of the blades that were stamped 440C and China, but I'm using O1 and aiming more towards camp knives/sheath knives with the CNC set-up and then grinding knives for friends and family. I have an agreement with my local gun shop to carry the knives based on the designs I have on Fusion360 and a couple of hand ground blades I made using the measurements. I know there's a level of luck needed, but in my area there's not much, and plenty of people who want a good sheath knife or skinning blade for hunting.

Edit: I'm aware this isn't a hobby to get rich, but I always have loved working with my hands, I'm just looking to sell a few at a time to pay for more steel and G10.
 
My Bro-in-law owned and ran an aviation repair company for 25 years. If anyone screws up, planes crash and people die and a lot of lawyering happens. I know everything he and his wife personally owned(house, cars) was in her name, all business equipment and business assets were owned by a numbered company in his wife's name, and the actual repair company was the only thing he owned and it was just a name. It was WAY cheaper than insurance.
Never had a plane go down that was his fault, but he was covered if it had happened.
 
I sharpen & sale my customs at a local Farmers Market and drive to peoples homes for sharpening! I am Bonded for up to One Million$$$.. some people leave their keys for me knowing I’m Bonded.. it also covers my grinders & other tools in my shop. Now it only Costs me about $350.00 a year. Look for an insurance broker that covers, Event Planning to get started.
 
Liability for a knife breaking is covered by your warranty. Just replace the knife if the customer says it failed for no reason. If he says he was prying a stuck door open, then it was his fault, not the knife. I still replace it. Customer service is the best policy. As for insurance, a police covering your equipment, building, and general liability ( someone gets hurt in your shop) is not expensive, but few makers bother to carry it, If you are a hobby maker selling n ebay and online, I would say you don't need it.

And, don't listen to anyone who says your home owners insurance will cover you. It either won't, or will get canceled immediately after a claim. It is for homeowners, not businesses. If you sell one knife, the insurance company considers you a business.
 
guitarguy1 said:
Howdy folks, I'm building a knife business up while working my regular job full time. For those of you who sell your knives do you carry insurance for something like a failure of the knife? I'm just not sure what to look for and would like to have an idea of what it is I need before talking to an insurance salesman who will try to to sell (not knocking folks just making a living, simple statement of fact).

I know my father has business insurance for his clock repair business, but he has customers walking into his building. I'm planning on selling online and through my local gun shop and general sporting shows.

Basically, outside of a business license I'm not sure what I need. Any help?
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go to local small business advisers, in NC they are at community colleges and get some advise. In North Carolina they have 'due diligence' which basically means no can sue you if they get hurt using your knife. talk to you dad, he probably has liability insurance that would protect him if someone fell in his shop and decided to sue him.
 
Agreed on the customer service. I’m about to go into my 4th year full time knifemaking. No insurance. My insurance is I know my customer and we have a relationship. It’s why I don’t sell on a website. I want to know who my customer is.
 
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