Replies

1. 
   Bayviewrr | Feb 04, 2007 05:16pm | #1

   I owned and insurance agency for twenty years before starting my own renovation business.  I feel that for the money, liability insurance is a good by as a way of protecting your assests.  Lawers and expenses can add up quickly in a law suite, so the relatively small amount you spend on the insurance can pay off quiclky in the event of a claim.

    I would take a good look at the coverage which is provided on your tools however.  Make sure that you understand what it is covering, and more importantly, what it does not cover.  Also, make sure you understand the valuation clause of contract.  Exactly what will they pay you if there is a loss?  Will they settle on replacement cost?  Will they depreciate the value of your tools?  My experience has been that this coverage is generally pretty expensive with some very restrictive conditions. 

   One thing I would recommend is that you carefully review are any restrictions that your homeowners insurance policy may  have with regards to a business occupancy in your home.  I can remember a claim where a guy set up a shop in his garage for his small cabinet business.  The shop caught the garage on fire and burned it to the ground.  The insurance carrier denied the claim because the garage had a commercial occupancy which was excluded under the policy.  Be careful with that one.

   Good luck.

    

2. 
   pcooper | Feb 04, 2007 05:20pm | #2

   Well, in the area I am in I can't get anything like that. My insurance company won't touch anything business and the ones that do charge something like $400 a month for the same thing you have. I guess they are afraid of a claim? Maybe they make you pay ahead for any claim you have here. I tried in Tennessee and North Carolina, both places told me numbers like that. Guess Canada has better policies than we do. I'd go for it for no more money than that if I were doing it for my living. I hate being in a position where I can't relax in case something crazy happens and I get sued over a mistake.

3. 
   highfigh | Feb 04, 2007 06:20pm | #3

   $70 CDN/mo is dirt cheap. I don't know how they would be able to get away with collecting premiums and not pay when there's a claim. The insurance is for accidental damages, not those caused by the workmanship. I'm not saying that they're bad at what they do but there is a difference and cutting a hole in the wrong place shouldn't be covered but nicking a pipe or wire in the process should.

   "I cut this piece four times and it's still too short."