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Shop Insurance Question

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Fred Williamson

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May 30, 2008
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I bought business property and liability insurance through the company that AAW recommended, beginning July 2005. It was the Ohio Casualty Group, now Peerless Insurance. The price quote was $333.66, but the bill was $500. Are there other members who have an annual bill less than $500, or is that the minimum charge as I was told?

In more detail: The original billing was for $333.36 (now $346 I believe) on July 13, 2005 but then they promptly added $166.64 saying they had a $500 minimum, and all subsequent bills just said $500. I contacted the Craft Program Manager Hyisha Logan in July 05 to ask about this, and she confirmed that was the standard policy for the Managing Agency Group that handles the program for the Ohio Casualty Group and endorsed by the AAW. In this time of rising costs I am wondering if I want to continue my insurance with them, and want to know if others have the same charges. This policy does cover wares while away at shows and has a $1,000,000/2,000,000 max. liability.

Is there anyone that has a liability policy with another company at a better price?

Thanks, Fred Williamson
 
Fred, I don't have a better price for you, but I can tell you that finding anything better than what you already have, at least in the way of price, is going to be very hard. I could not get insurance through the AAW because of several factors, the biggest ones being volume of sales and shop considerations. Being a movie star (i.e. videos) did not help much, and teaching was a problem too. I was able though, to ditch my old insurance company that was sticking me for over $1200/yr and pick up a much better policy from The Hartford that covers all that I do in my business for just over $800/yr.

Beware of people who will tell you to keep your mouth shut about your business activities when you apply for a policy. I got some very bad advice from a well known person telling me to be quiet about things that I do when I filled out the application. That will get you a policy, but you are paying money for a false sense of security. When they find out you are doing something that is not covered, guess what? It won't be covered. And how do they find out? They find out when you need to submit a claim. So if you really want insurance, you need to make sure you are being insured for what you are doing. Otherwise you are just spending money for no cause.

Bill
 
I'd say you've got a deal . . . Mine started at $500 the first year and then jumped to $650 the second with no explanation at all. I've not had any claims or changed a thing, but they won't give me any reason for the increase. Even at that amount, it's the cheapest insurance around (and I've been looking!).
 
I didn't even look into that policy because it is for woodturning only, and I do some flat work. I will have a look at the Hartford to see what they offer, I am currently with Liberty, and at about $1700 per year. I have had a few problems with some companies. Most of them are set up for bigger businesses, not one man shops. I had one company drop me because I didn't have sprinklers. They always want a dust collection system of some sort. One of the details that I don't want to have to hastle with, but must to be in business.
robo hippy
 
Interesting subject. I raise a question as I've no idea what the answer is or if it might be different in different parts of the country or with different regular house and liability coverage.

I give away turnings so I haven't been concerned about this but have to wonder if my regular insurance would be valid if I sold my work. At that point I would be running a business in my house.

One might do well to discuss this with the insurance company one is covered by or at the very least discuss it with the broker.

I had friends here who are diving instructors. Through the certification agency, they had liability insurance coverage which I believe covered up to 350,000. After a death or serious injury the coverage needed would be many times that.

Malcolm Smith.
 
At least you can buy the insurance. Louisiana has had so many insurance scams in the past years that the folks offering that coverage won't come play here. I can only imagine that they didn't want to pay the right people.
 
Some home owners policies will flat out dump you if you have a wood shop, even if you don't sell. Some will give only minimal coverage ($500 with one previous company I was with). You may want to check that out as well.
robo hippy
 
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