Liability Insurance

Patrice Lemée

Patrice Lemée

Joined
Aug 13, 2002
Messages
5,703
I found a few threads about this but a little old and not that much info so I thought I'd start a new one.

A lot of questions.
Do you guys carry any?
How important is it?
How much does it cost?

Being a part time maker with a low output, it won't be an option if it is too expensive. But not having any, even if I make a very small number of blades, it only takes one lawsuit to bankrupt you. I must say I am more than a little stressed about this.:grumpy:

Any input you guys have would be greatly appreciated.

Thanks.
 
in a nut shell if you make knives you cant aford the ins
you can make all kinds of thigns and have people in the shop and teach if you want \

soon as you say knife maker you need 5 milll coverage
 
Don't think this is true. I hear the business could come under the category of cutlery manufacturer and as long as you weren't marketing knives as offensive weapons you could get by nicely with a US$1,000,000 liability policy for about US$2,000 a year.

But consult an agent who knows his stuff and you'll do fine.

Zieg
 
Patrice, I was afraid that I would have a fire or some other problem and my insurance would be denied because I had not told my insurance company that I was making knives in my garage, let alone wondering if my tools and equipment were covered . I worried that because I sold knives that I would need commercial coverage also. I called my insurer ( Travelers Insurance) and told them that I was making knives and selling knives from my garage. They asked if I was using equipment that was hot like a kiln or forge and I told them no since I make knives by stock reduction and they also asked if my tools had an actual cash value ( fair market value ) in excess of $5000 and I told them my equipment was valued at about $5000 as used equipment and they said that I would not have to pay an additional premium and that they were making notes of my call to my main insurance risk file. My recommendation is that you call your carrier and tell them everything they want to know because you never know what could happen later. I am 65 years old now but when I was in my late twenties I was an independent insurance adjuster for the General Adjustment Bureau ( worlds largest adjusting company) and later became an adjuster for Underwriters Adjusting Company ( second largest adjusting company owned by the Continental companies). I also became a real estate appraiser for the next thirty years. My opinion and experience tells me that your concerns are very real and should be addressed right away. Make the call and sleep better at night...just my opinion. Larry
 
Larry, that's the thing. My new carrier (I use a broker) has new rules if I want to renew with them. Basically no selling of any kind and I can't have a welder (even if I use it maybe 2-3 times a year) in my garage (which is attached to my home). I called a few other carriers and it's basically all the same and in most cases even worse. They don't have a "knifemaker" category it's no right away. Some are a little more comprehensive if you have a separate garage but that's for the tool value, not the selling/liability part.
I asked other makers and it ranges from not having any insurance and chancing it to having coverage which is real expensive but of course only if you CAN find a company that will cover you and that far from certain.

I finally find something that I am reasonably good at and now I find out that I may only be able to make knives for myself and the fun of it. I am bummed to say the least.
 
Patrice, When I last shopped for insurance I went online to search for homeowners insurance and found a website which matched up insurers with people wanting insurance. I filled in some information about my home and only five minutes later the phone began to ring. I got a quote within an hour from Travelers from an agent in South Carolina and I live in California thousands of miles away. I accepted and made a deal over the phone with paperwork arriving about two days later. I was kind of sorry I did this because I got hundreds of calls from agents for almost a year but I did make a good deal on my insurance for home and cars. Maybe you could try this to find an insurer. I would not mention the welder unless prompted to do so. I know that some knife makers say they make "cutlery as a hobby". I would think a heat treating oven or forge would be a bigger problem but it might not be an issue. Someone will want your business. Keep looking. If worse comes to worse maybe you could find another place for your welder and move it back to use it once in a while. Good luck. Larry
 
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heres the thing tho larry if there was a fire and the welder is in the shop even if it was not even used that week an INS. co coudl use that as a reason to not cover any of it
sadly in this day many will use any reason they can to not cover replacement they might also have issue with a belt grinder after all it sendsd sparks all over the place
im lucky that all of my tools are in an out building
as to the 5k$ in tools i have that covered in my VS KMG and roll in saw let alone the 2 mills and a lathe or the kiln
 
I will keep looking Larry. But as Butch says, insurance companies might use what they can to deny coverage. And not only replacement cost of a particular tool but everything that was lost. Plus if I went with an obscure company I would be just as stressed that they might not be solvable. (not sure it is the right term)

I also want to ask if donating knives to charities is the same as selling as far as liability is concerned. I had planned to donate a few knives a year.

Thanks again for all your help guys.
 
I have independent liability and property coverage for my shop only through Joseph Chiarello & Co., Inc. For coating firearms (which I don't do anymore lol) and knife modification/sharpening and it runs me around $1800/year. Hope this helps. I'm hoping to get it reduced next year since I cut the firearms part out.
 
Welcome to Bladeforums turgutalp.
Part of good business is to read all the fine print. The not so fine print on this thread is that the last post was 6 years ago. Always look at the last couple posts and see if the thread is old.
 
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