Replies

1. 
   lwilliams | Oct 19, 2007 11:39pm | #1

   Find something quickly, Jeff. Several years ago I was just putting numbers together to see if we could justify building a shop for our architectural woodworking business. I knew we were at least two years from building. I asked my "snake farm" agent what the insurance might run on the building we were considering and they canceled our other insurance policy. Finding replacement insurance was complicated by their cancellation.

1. 
   Shilki1 | Oct 20, 2007 06:49am | #2

   Try Rutgers,  for about $2,000.00 a year you can get $175,000.00 coverage for tool, contents, & on-going projects.  If your a professional it's tax deductable :)

2. 
   dherzig | Oct 22, 2007 10:55pm | #10

   I wonder if it would help to form an LLC to separate the business from the residence in terms of ownership. Although my consulting business has no real assets to be lost, I had an attorney create one for me for about $100. It costs about $25/yr. to the state to maintain the license. I also carry a $5,000,000 umbrella policy as part of my homeowners and car policy. This protects me from excess liability. The premiums are less than $250/yr. and allow me to reduce the level of liability on the home and car policies, thus saving money on them.

2. 
   Jfrostjr | Oct 20, 2007 04:38pm | #3

   Check the Yellow Pages for an "Independent Insurance Agent". These people are not affiliated with the big names, like All State, State Farm, AAA etc. They will shop your requirements to a number of independent insurers and provide you with an array of coverage options and premium costs.

   Frosty

   "I sometimes think we consider the good fortune of the early bird and overlook the bad fortune of the early worm." FDR - 1922

3. 
   jptenberg | Oct 20, 2007 06:30pm | #4

   I was able to get a decent policy through The Hartford.

   Peter

   www.jpswoodworking.com

4. 
   bones | Oct 21, 2007 12:48am | #5

   Talk to other insurance carriers. Offer your home/car/liability the whole shebang and you will get some results.  State farm not the best.  I have a 10k rider on my homeowners policy just for my tools, and it only aded 30 bucks to the policy. 

   Government's view of the economy could be summed up in a few short phrases:
   If it moves, tax it. If it keeps moving, regulate it.
   And if it stops moving, subsidize it.
   
5. 
   oldusty | Oct 21, 2007 05:02am | #6

   Jeff ,

             Several thoughts , as has been suggested offer your entire insurance package to an independent agency , car's , home and business will get you further with the agent .That's how we did it with our home and shop .

        A few years ago the insuring companies tightened up on wood shops , your particular area's codes and regulations will dictate any local  demands for the business  .They wanted to know there was a central dust collector whose cyclone was located out side the building . If you tell them you do panting or spraying you may open up a real can of worms .The local fire Marshall depending on your area could come sniffing around .    

   What you can do is get commercial insurance on your work vehicles and insure the contents . The liability insurance is a separate policy from tools . The general liability coverage typically will cover completed products and damage on site work , med , etc ,mine also covers people on my property if negligence on my part causes injury , not sure of the exact wording . So , suppose we were spraying and the place blew up and someone got injured from flying debris         (I know) but this is how the underwriters must think .

                good   luck               dusty

           

6. 
   MapleDave | Oct 22, 2007 01:32am | #7

   Hi Jeff,

   You may want to check to see if you can get a group rate by joining a local Chamber of Commerce or professional woodworking association. Also, check with other full time woodworkers in your area to see who they are using. Most guys will be quite helpful when it comes to things like this as we all know what a pain it can be. Finding an insurer who understands the woodworking business and isn't afraid of it is key.

    I went through the same thing a few years ago. Here in Canada I found Co-operators Insurance to be quite co-operative.

   Good Luck,   David

    

    

    

1. 
   kelvinpot | Oct 22, 2007 03:05am | #8

   Farm bureau and State farm both gave me trouble if i used "finishes" in my hobby shop. They won't insure anyone using finishes. I said, i think a lot of homeowners finish things. "Oh, well" they said. You need to be careful about what you ask for. I was also canceled by my home owners insurance when i asked my agent about business liability. Now i'm trying to figure out how to find something affordable. Contractors insurance looks the way to go. I think it covers a number of things, but i doubt you will get coverage for everything unless you are so rich you wouldn't need it anyways. They aren't in the business of helping people. THey are in the business of making money playing the odds.
   KP

7. 
   mudman | Oct 22, 2007 04:52pm | #9

   You need to find an insurance broker that specialises in comercial policies. Your residential policy agent shoud be able to recomend someone. Other than that ask local shops or any type of local comercial business who they recomend. If you have a relationship with a banker they should be able to help as well.

   Good news is that a million dollar (standard for residential work) policy is not too costly for a wwing shop. Depending on your gross and number of employees it should cost $800 to $1,200. I think that being attatched (or detatched) to the house will hurt you though. You will probably have to cover damage to your home as well.

   Covering the machinery is iffy. It costs a lot more and offers limited coverage.

   Pardon my spelling,

   Mike

   Make sure that your next project is beyond your skill and requires tools you don't have. You won't regret it.