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AAWs Artists Insurance

Steve Worcester

Steve Worcester

Admin Emeritus
Joined
Apr 9, 2004
Messages
2,708
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113
Location
Plano, Texas
Website
www.turningwood.com
A little while ago the AAW contracted with a 3rd party provider of insurance for individuals. (Here is the application link http://www.woodturner.org/community/pop/insurance_info.html)

I filled out and faxed the application, called a few weeks later and was told due to overwhelming demand, they are behind. I waited about a month and called again. They said they had my application but there were certain parts of Texas they could not insure but were not yet sure where. Still haven't heard anything.

Anyone else have any luck with them?

(I can't find many people interested in insuring a home based business with an attached shop).
 
Steve
I had trouble finding insurance. They all wanted the business to be further than 150 feet from the house. Farm Bureau finally came through and gave me a pretty good rate provided I never put a wood stove in there. I had to make that decision before I knew about the AAW insurance.
 
Steve and John

I have a commercial policy that insures me for all sorts of things. It costs me a fortune at a little over $1200/yr. Up until last year it was only a little over $800/yr, but they raised my rates because other people are experiencing claims! That is exactly what my agent told me. According to both him and the insurance company, woodworkers of any sort are all determined to blow themselves up, burn their shops down, etc.

Steve, I called about the AAW policy, and was told that because I do flat work as well they could not insure me. The lady with whom I spoke told me she might be able to write me a policy and would call me back in a few weeks. I am not holding my breath, but then I don't need to, as I am already insured. She said the policy was not designed to cover liability if I make a stool and someone falls off of it. I wonder what would happen if every component of that stool were turned?

John, I had the exact opposite problem you describe. I had trouble BECAUSE my shop was detached. State Farm will write policies for home businesses if the business is attached to the house, but not if it is detached.

I am about ready to incorporate to protect all my personal assets and bet the shop won't burn down. They are betting the same thing, and I can just imagine that if it did, some weenie would appear to tell me why they are not going to pay because I did something wrong.

Bill
 
Bill, as I'm sure you agree, that is ABSURD! Would they insure a segmented turner? A lot of that is flat work. Is flat work inherently more dangerous than round work? Maybe its the sharp corners? I don't know many flat workers who run chainsaws!

Mike, proud resident of Absurdistan.
 
Theater of The Absurd

Mike,

Consider that State Farm is writing homeowner insurance, not factory/manufacturing policies. So long as the structures are connected and the shop is clearly "subservient", they're going to be fine with it. Once you move into the separate non-dwelling structure situation, you raise all kinds of issues in the underwriters' minds like 😱 O-S-H-A 😱, theft risks, security and third-party access, toxic waste (includes that carcenogen, sawdust) and off-site migration, visitor and intruder liability claims, building code inspections and compliance, . . . the list goes on ad absurdum et nausium. Point is, it quickly becomes apparent to the insurer that the premium the client is willing to pay is simply not worth the risks to be insured so they simply decline to quote or write a policy.

I'm sure that there are a number of commercial enterprise insurers who will write Bill a very nice policy, provided he's willing to pay about 10 times what he's paying now, and is willing to submit his shop to inspection and compliance with the insurer's risk control "experts" recommendations. "No, we're sorry Mr. Grumbine, but our research mandates that any part of the bandsaw must be not less than 97-3/4" from the edge of tablesaw, plus a minimum of 56" to the side of the plane of the tablesaw's blade, and have not less that 73" of unobstructed outfeed space. Now, about that tool rack and those lights. . . ."

Mark
 
I have a farm policy on my place with ALFA Insurance (Alabama Farmers Federation) and my shop is a small freestanding building. I had to assure them that I was doing this only as a hobby and for use on the farm and would take no work for hire. The rate then was very reasonable but I was warned if I had a claim and they found out I had been doing work for others then they could refuse to pay. Donations to groups of my work are fine as I make no income - go figure!

Wilford
 
Hi Steve, et al,

We actually just recieved our policy last week. Our insurance has been in effect for about 3 weeks.

I mailed the form on 18 March.

I hadn't heard anything and called them around 1st of May. They told me they we having trouble writing policies in parts of Florida and were holding those applications but that Polk county where we live was not one of those areas.

I was quoted a rate over the phone which was follwed by a written quote in the mail. I'm not sure where we would be without the phone call.

I'm not sure costs are relavant since they will vary with location and the actual under-writer and our shop is steel which doesn't burn easily.
Our is $504, $250 of which is $25,000 coverage of all the stuff in the studio- tools, supplies, finished work, etc.
One thing that is nice is that this coverage exists off-site like at a show, in an airplane, etc. So I have theft/loss coverage for tools and art work with a $250 deductable.

Happy turning,
Al
 
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I am one of the "uninsurables". It seems that this is an insurance policy for "artists", and not "instructors". They started running away when they learned that I would be making good a part of my woodturning income from students in my shop.

And, yes they do consider segmented assemblies as "flat work" because it uses a tablesaw or miter saw. Students and tablesaws are a high risk combination.

Others may have different results from their application.
 
I suspect there are differences state by state.

The AAW policy I have does cover some teaching.

I don't plan to teach all that much.
In my description I put teaching hands on classes for up to 4 students and 80-100 hours total class time annually.
 
Contrary to other posted notices, I faxed an application fot insurance to the company listed by AAW on a Saturday morning and had a Quote and binder by 9:am on Monday morning.
I was very pleased with their reply as the Quote was for more insurance for about 1/3 the price of others I had looked into.
 
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