Shop insurance

ScottRoush

ScottRoush

Joined
Jan 10, 2010
Messages
1,818
So it's looking like I need to get a separate insurance policy for my shop and knife making business. I'm curious how other folks handle this and if there are any companies or policy types that would be recommended.

I would like a policy that allows for some workshop teaching, etc.. but I realize that will throw the premium through the roof!

I hate this stuff.. but I suppose it's necessary.
 
I just did the same. If you run it like a business you need to cover yourself with adequate insurance. If it is a hobby then your home content on your house policy covers the contents up to the total coverage on your home. That is for my insurance in Alberta, Canada. Check with your insurance to verify. Best of luck.

Dennis
 
Gooooood luck is all I have to say, Scott. I have ran into nothing but walls. I recently moved and am inquiring around these parts, hoping things would be different than where I came from. I was even less than insurable in Ontario. My friend(knifemaker) almost lost his mortgage when he attempted to get insurance. They just don't understand it back home. I could be a glass-blower, welder, mechanic, ceramics studio, etc... but mention "forge" or "knives" and eyebrows raise as the pens get put down. Hopefully Nova Scotia is better... we have a society for arts and crafts here. I have changed my title from bladesmith/knifemaker to "Artisan Outfitter".
 
Well hopefully somebody other than a couple of Canadians will respond... as cool as y'all are. :-) Just kidding.. I appreciate the comments. Rick..I've looked into the education end of things and that IS very difficult... but I was hoping it would be easier with regular fire/disaster type insurance.
 
I've got my building and equipment insured, and that's it. 40k worth of building + 40k worth of tools ended up more than a thousand bucks per year in premiums. This makes no allowance for coverage of injury to myself or others in my shop. As you expect, if you want this coverage it is gonna be quite costly.
 
I have a policy that is underwritten by Central Insurance Company. I pay $1100 in premiums annually. It is property and liability coverage. I can have guests here, and they are convered, but any employee is not covered. That is done seperately under workmans comp.

Edited to add that it never would have gotten covered in my home. Never. Also, I told them the truth about the process. They asked lots of in depth questions, and sent an inspector out to go over everything with me as well. Moving the business to the new facility last year was the best thing I ever did.
 
Same as Andy. Insuring the building and equipment as an add on to my homeowners insurance would have resulted in only a minor increase in the premium of that insurance policy. But, when it is now considered a commercial entity the costs increase drastically and had to be a separate policy. I was 100% honest with them about the use of the building because if it hits the fan I need to be covered.
 
I know this sounds really pessimistic but I would like to hear from folks who have actually had an incident and gotten a payout from their insurance company. I am also 100% honest but wording has a LOT to do with it when dealing with people who are uneducated about knife making and intent on holding onto their money(and your money). I'm afraid with insurance, the horror stories greatly outweigh the happy endings and I'd rather not pay outrageous premiums for coverage that will not be there anyway. My intentions are to be completely legit but I am constantly getting blocked. I agree, a detached studio is the ONLY way to go if you want any sort of security.

There are many who honestly believe they are covered and everything seems like it is done properly... I wish I could find more encouraging testimony to back that up.(Outside of theft... I have heard of that being covered)

Again... I don't like being the downer and apologize.
 
I think it's a very valid point Rick. I am one of the few who actually read the contract top to bottom before I sign up....well ok not for iTunes haha. What they would do on a claim remains to be seen but I've got in writing what's covered. I do think its their nature to try to pay as little as possible so it's critical to be familiar with your coverage.
 
Well I am a hobby maker and have sold less than 6 knives just to family.Making them to sell took the fun out of it. My shop was very nice that most full time makers would find a joy too use. Then we had a fire in June in the middle of the night and lost everthing. When the adjuster came out I told her the truth and she said no problem it will be coverd. So we moved forward got all the debris removed took lots of picture's. We got the first check for the building but when we treid to get paid for the tools ..it hit the fan and was told are claim should have never been approved and they are reveiwing EVERTHING from are bank accounts to web activity to try to prove I was running a company. At this point I feel we are screwed and they will not pay but we pray everyday that this is not the case.
So to sum it up please dont let this happen to you. Do your home work and get the right insurance.To be honest I never thought that I would not be coverd let alone have somthing like this happen.
Ps The fire was caused by a short in overhead air filter like the Jet ones and moved to the rafters. MY shop was only 7 years old with all electrical inspected.
I tried to post some pis of the burned shop but the upload keeps failing.
again dont let this happen to you guys. Brett Mathews
 
If you're selling, don't forget to check your state/county/city zoning and tax laws as well. If you're not legal in that regard, no amount of insurance is going to cover you.
 
Scott,

I'm not sure of just what type of coverage that you are after. I have a bit of a unique situation in that I maintain a shop/retail store where I'm required by the leasor to have $1,000,000 of liability. For the liability only it runs me $300/yr.
If you are wanting coverage for equipment & tools then I would talk to your homeowner's carrier.

Gary
 
I'm not sure about shop insurance, but I'd like to add my experience to Brett Matthews' response for those reading this thread and may want to start-up their own business. I owned a business as well. Make sure that a tax ID # has been setup for the business. I'm not a knifemaker, but I set my business up as a small business corp. Uncle Sam can make life fairly miserable for those that don't do this. I don't know if this will help as far as shop insurance but it may add a degree of legitimacy to acquiring insurance and any future claims. I did all of the "paperwork" to set up the business myself and I actually filed the wrong forms the first time. It was a lot of red tape to filter through. In retrospect, if I had to do it over again I would just pay someone else to put up with that headache.
 
I believe Raymond Richards had his shop insured, and was fully covered when he lost everything in the barn fire.
Can't remember the fellow out west that had his shop destroyed by a storm and fire a few years back. He was insured and rebuilt.

Having the right insurance is key. People regularly advise to call it a "Hobby or just not mention it. They will be very sad if there is a claim.....if you doubt me, ask Brett.
 
You must log in or register to reply here.
Back
Top