Shop insurance

[Don McClure]

I occasionally sell some of my work, and habe been told that my house indurance will no longer cover my shop. What are you other turners whjo are in a similar situation doing to cover their shoips against fire, theft, etc. I see that the AAW has liability coverage, but did not find anything else.

[Bob Bergstrom]

Best to talk to your agent. He is the one with the best answer for your situation. Mine said "if I am am running credit cards and filing income tax, it is a business". To sell a few craft shows or sell to friends and aquatinancees is ok and not consider a business. Same with teaching a few friends or club members turning. Start charging and teaching strangers is a business,

[Richard Coers]

Yup, talk to the agent. My insurance company also wouldn't cover all the tools, too high of a percentage based on house value. I have a commercial policy now.

[Paul Williams]

My agent offered a "craft or hobby sales" rider to my home owners policy. It was minimal cost but only covered you if your sales weree under $5,000 per year.

[Reed Gray]

Some home owner policies will drop you if you have a wood shop, some will only cover very minimal amounts. It also makes a difference if the shop is attached or separate. I got the best deal from The Hartford. Covers me, students, product, tools, theft, and everything else.

robo hippy

[Bernie Weishapl]

I have my shop insurance thru State Farm. It cost me about $420 a year. Covers all my equipment, product, theft, fire, tornado, and liability if someone comes to pick up a turning. It would cost me more if I had students.

[Greg Just]

I have AAA homeowners insurance and my agent told me I'm covered as long as people don't come to my house to buy things.

[Harry Robinette]

I have Farmers Insurance my agent talked to me and we upped my household contents to cover all my equipment and woods. As long a people don't come to the house to buy and I don't charge for teaching. If I do, I must have business insurance on the shop and my liability insurance
has to be raised. Oh ya my shop is in the basement.

[Mike Cruz]

Don, I researched this UP AND DOWN for about two months starting toward the end of last year. I'm in Maryland. In Maryland, apparently the "rule/law" is that if you are selling ANYTHING, you are a business (as far as your insurance company is concerned). As a business, your tools and equipment are not covered by your homeowners policy (if you are selling...ANYTHING from your shop). Your homeowners liability will also not cover your "business".

For your insurance company to issue you business insurance, the Government requires you to have a Federal Tax ID number. So, you need to become a business to get business insurance. To insure about $30,000 in tools and get liability insurance, it is running me a little over $550 a year, with a $1000 deductible.

It WAS going to cost me almost $1000 a year. But I cut back on how much my "replacement cost" for my tools and equipment would be. And also, my shop (detached) is still going to be able to be covered under my homeowner's policy.

Bottom line, you need to talk to your agent. I not only talked (over and over and over again) with my agent, but I called around, checked around, met with other agents, and "hired" agents that represent multiple companies to search out a policy for me. My insurance company was not only one of the few insurance companies in Maryland that will insure a woodworking business, but according to the other agents that I had "looking" for me, my insurance company had as good or better rates than anyone else they could find.

I have Eerie Insurance.

[Denny Rice]

God, I'm so glad someone started this thread. This is something I need to do soon.

[John Beaver]

Just hope you don't live in California. Apparently they don't like wood shops here. My homeowners would not cover the shop and one other company covered me for 6 mos. and then realized it was a woodworking shop (I did tell them that from the start) and cancelled the policy. I did end up with a policy from Travelers Ins, (separate from my homeowners) through the AAW's recommended agent, that runs around $550 / year. It also has a rider that covers my pieces traveling to and at Craft and Art shows. I had a piece broken at the last show I did and they covered it with no problem.

[Andrew Joiner]

Best to talk to your agent. He is the one with the best answer for your situation. Mine said "if I am am running credit cards and filing income tax, it is a business". To sell a few craft shows or sell to friends and aquatinancees is ok and not consider a business. Same with teaching a few friends or club members turning. Start charging and teaching strangers is a business,

Bob, I would ask your agent to put that in writing and keep a copy.
I think an attorney would tell you have a business exposure if you sell one item, even to a friend.
Ask your agent about a hypothetical. If you sell an item to a friend say a cutting board. Someone get's sick and sues you claiming it was the cutting board. Ask your agent if your personal insurance covers you on this. If your agent says yes and puts that in writing you maybe OK.

[Denny Rice]

I have been talking to my State Farm agent of 20 years and they just keep talking in circles..........They are scared of that word "woodshop"!

[Mike Cruz]

Yup, I went around in circles with Erie but finally settled on what I needed. I was going to go through AAW, because the coverage was twice what Erie was offering for 1/2 the price. BUT I couldn't get that company for my business AND still keep Erie for my home. Erie wouldn't go for that. Something about there being a fuzzy grey area as to "who is responsible" for liability for someone on the property but there for my business reasons. I tried to get quotes from the other company for home owner's insurance, but I never got a response...

[eugene thomas]

I just sold my drum sander to guy last week. His business partner took care of theinsurance for business. They had fireand now he’s trying to re buy tools but seems they only had $25000 foreverything not including the building. Toughto replace few thousand board feet of lumber, tools and the jobs where workingand and had completed. First thing didafter he left was check with my insurance agent to make sure have enoughinsurance. I pay $1000 year for myinsurance but fell am covered for what have in my building.