Shop Insurance?!?

[J.R. Rutter]

I just got a quote for insuring my shop and contents - about $75K total replacement value. It was $2700 / year. I need the insurance, but this seems like an awful lot of money off the bottom line every month. Anyone have recommendations on other companies to get quotes from?

Thanks!

[Steve Schoene]

Does this insurance cover business liability as well as the shop and contents?

[Jim O'Dell]

Does this insurance cover business liability as well as the shop and contents?

I'll add a couple more questions to this...Is this a stand alone commercial shop or a hobby shop at the house? If a hobby shop at home, is the building connected to the house or separate? All these things could come into play on the pricing.

Jim.

[Gary Lange]

I checked your home page and see that this is most likely a stand alone shop and being a Custom Woodworking shop at that. I would check all of the Insurance Co. in the area before picking any one in particular. The Brother was getting Homeowners Insurance for his new home and got a quote from the company he had back in Illinois. I have a very similar home and he new what I was going to be paying. His quote was $700.00 and mine was $400.00 you can guess which one he went with. They were both equal on coverage. With a Business such as yours you may have employees or other liabilities that you must deal with. Get a bunch of quates and campare them not just price but what is set in dollars and cents as far as coverage amounts also.

[Jeff Sudmeier]

As Gary said, be sure to get multiple quotes. Many of the times you can get more coverage for the same money or the same coverage for less.

[Phil Winn]

JR..
Please check into the actualy insurance company--its' rating (AA, B, whatever)...and check around, some Insurance Companies are better
in PAYING claims than others...
Phil

[Frank Pellow]

WOW running a shop as a business is expensive.

The replacement value of my shop and equipment (in Canadian $) is about the same as your in US $. WhenI built the shop last year, my insurance company simply added it to my home policy at no increase in rates.

[Corey Hallagan]

Hard to tell if it is high or not. You will be insured for premises operations and completed operations liability as well in that case. The liability rating depends on the kind of work you are doing and if it involves any installation etc. I expect it is a frame building and those always cost more to insure. Wood working operations are on many companies X list and they won't right them do to the fire exposure. Use to be a tough write for many companies. The fire protection in your city is rated and the smaller the community the higher the rate usually and if you are rural it can be very high.
Corey

[John Lucas]

My wife had the insurance agent add the garage shop and equipment to our policy. Very little etra cost. Problem is that I dont think I am covered by it. With a loss of any sort the ivestigator would call it a business and not cover the loss...other than the structure. Also, the replacement value of equipment that is 5 years old is nothing or next to. If I go replacement value, the insurance goes right up there. Bottom line: include it with house and hope.
Most important is to keep a total inventory. I am doing a walking/talking videodisc.

[Jim Becker]

As others said, "Business" use changes everything. While my Chubb Masterpiece homeowners policy does cover "incidental" business use (it's an extremely comprehensive policy), it specifically excludes full-time endeavors or business activities beyond a certain point. I also recommend you speak with several agencies to get competitive quotes as well as several points of advice. And if this is a business situation...the liability aspect also applies.

[Donnie Raines]

The means by which most carries judge wheather or not you are running a buisness from your home is simple. If the majority of your income is derived from a hom ebase buinsess...no coverage under your standard homeowners without some type of endorsment..or seperate policy. If you make chump change from _____...then you are fine. Keep in mind that if you misrepresent yoruself on an apllication, and you have a loss, the company can deny the claim...and they do.

[Mike Wilkins]

Been a claims adjuster for a dozen years with a major insurance company, and have had situations arise like this.
Bottom line is this: if this is just a hobby shop at home, your homeowners policy will cover the shop tools as contents, just like your sofa. The building itself carries separate coverage from the house in the same policy. Both of these items(contents and bldg.) can have their coverages increased to a higher amount, with resulting increases in premium.
Homeowners policies limit coverage for business pursuits; check your policy or consult your agent for the amounts. If this is a commercial shop, with the occasional customer visits, you will best be served with a business policy for this business. Policies are specific for these situations; sit down with your agent and discuss with him(or her).
Don't wait until a major loss happens to find out you may not be covered for a catastrophic loss-I have seen it happen too many times.
Now lets go and make some sawdust.

[J.R. Rutter]

Thanks all,

Yes, this is a full-time business.

Includes $1M liability + coverage for shop, DC/Lumber shed, and contents.

Maybe if I say no finishing done in building (I don't), no finishes stored there...

[Joe Pelonio]

JR,

I see you are a "neighbor", my shop is in Bellevue. Your cost sounds right in line with mine, I pay $1,400 every 6 months with State Farm. I was paying under $300 every 6 months until a few months after "9/11" when it went to this. My
agent of many years was never able to get a satisfactory explanation for the
increase. I was very angry and did a lot of research into other providers, and discovered that this was the lowest! I have 1 million liability and the contents
are covered for $100,000. I'm in a business park, right next to where 520 and 405 meet. Since '93 have had just one claim for water damage due to roof leak, at a previous location, landlord paid deductible.