Woodworking – Small Business Liability Insurance question
I am hoping someone out there might have some insight or experience here that they’d be willing to share.
I have outgrown my home-based woodshop and moving into a larger space. I am leasing about 1,500 sq. ft. from a family member for a (very) nominal cost. The caveat to this practically free workspace is that I procure a $1M general liability insurance policy, which is a completely reasonable request. I figured this would be a one-call finagle, and have State Farm quote me the policy since I have everything else through them. However, they will not underwrite a policy for a woodworking business. Period.
So, I have contacted several insurance companies, and have not found even one that will underwrite a general liability policy. When I mention “woodworking” or “furniture making” I lose them immediately. Does anyone out there have a GLI policy, and with whom? The only thing standing between me and rolling my equipment into a nice big shop with all the 440 and 220 I can eat is this…seeming simple…insurance policy. I feel like a kid locked out of the candy shop here….
Thoughts????
Allen
Replies
You need to find an Independent Agent in your area that writes commercial policies. Homeowner underwriters are terrified of anything they are not familiar with. All commerce would grind to a halt if they were the only ones offering insurance.
I have a policy that adds onto my existing homeowner's and vehicles policies which covers my vehicles, home etc. that will protect me up to $one million. It costs me $150/year at State Farm.
Homeowners Insurance
will not cover a business at the same address. Needs to be separate policy, rates, underwriting, etc. Most insurers like to specialize - either all commercial or all homeowner.
the best option to you is to change the profile of your business
I had state farm until I had about 5000 $ worth of tools stolen from a job site, called my agent and found out they would not cover them. Hung up and called Erie insurance, now I have a 2 million policy that covers my tools no matter where they are, including the ones in my shop. Please read the fine print, because state farm wasn't covering my shop either. Good luck, hope this helps
I had Erie for a long time when I was a remodeling contractor. Never had to make a claim, so, no real insight other than to say, they were great for what I needed. Most I ever had to do was produce insurance certificate when subbing out jobs.
Allen,
It's not entirely clear what you're trying to insure. Is it the structure? If so, I would think your family would already have insurance on the building. My homeowners policy with Erie covers all my outbuildings, including my 2,000 sf workshop. Could you ask your family to pick up the building on their homeowners policy and you pay them the extra cost?
I also have a liability insurance policy for my consulting buisiness with Hiscox. It's geared towards errors and omissions related to technical writing, but they insure a wide variety of areas. Good luck.
i agree his family should include building on their policy and he should pay the extra costs which will insurance company will charge
Hopefully he's got it worked out by now. His post is from 2013.
I called my State Farm agent a few days ago as a payment was due. Since I don't talk to them that often, I ended up asking the same question you did (woodworking to generate income). I was told it was $300 a year. I didn't ask about specific limits as all I was looking for was a ballpark number.
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