Woodshop Insurance

[Hughman]

I'm discovering liability insurance for a woodshop is a touchy area for insurance vendors.

Anyone have a similar experience? How did you solve the issue?

[S.V. Airlie]

Wouldn't that come under homeowners? Or are there catregories for workshops? I don't have a workshop obviously but I would think...

[George Roberts]

What specific hazards do you want liability insurance for?

How big is your business?

[Paul Girouard]

You'll need to contain some of your dust , with listed equipment that will take care of specfic machines . Never use the words " Spray booth" Paint room seems to be less problem matic :D

Is the shop in a commerically zoned area ? Or in your back yard??

[Canoeyawl]

I tried and wasn’t able to do it – the problem being that I was renting the space in someone else’s building. No one would touch it…
So, I crossed my fingers and got out as soon as I was able.
Now the shop is at home and I have some insurance as a homeowner’s policy.

[Hughman]

My situation is similar to Canoeyawl's. This doesn't sound too positive. :(

[capt jake]

I'm not an insurance expert by any means, but if it meets the building and fire codes, there shouldn't be a problem. Not sure about recent code changes but the older codes required a sprinkler system for any 'woodshop' over 1500 sq/ft. This was a real deal killer for most trying to make a go of it. The dust collection issue that Paul eluded to is also problematic.

[Hughman]

Sprinklers and dust abatement are on site. We'll see what develops.

[Bruce Hooke]

Since this is liability insurance you are looking for, who are you expecting would be in your shop that you need to have insurance "against"? If you are talking about customers, isn't that why many places simply don't lot the customer into the actual workshop? If you are talking about employees, isn't that what workman's comp is for? Or is this liability in case something in your shop damages the building that is owned by someone else?

[Hughman]

Or is this liability in case something in your shop damages the building that is owned by someone else?

Yup.

[emichaels]

Hughman,

I rented space before for business woodworking and the owner of the building carried a landlords business insurance on the building, this is the same as we currently have for a house that we rent out to others . Our homeowners insurance was converted to a commercial policy. Turned out to be only a small increasr in premium. Here in Maine my woodworking business is at home and the structure is covered under homeowners. The business liability insurance, in case something I make fails and something or someone is harmed, is thru Peerless in Brunswick.

Eric

[Hughman]

Thanks Eric,
The agent I'm working with seems to not have a handle on what I want.

I was thinking this would be simple. Maybe I'm not asking the right questions.....:confused:

[S.V. Airlie]

I was thinking this would be simple.. Hugh..

Ain't this the truth.. what appears to be simple to us.. and usually is in real time, is always made more difficult by someone else.:eek:

[kc8pql]

Quote:
Originally Posted by Bruce Hooke http://www.woodenboatvb.com/vbulletin/upload/images/buttons/viewpost.gif (http://www.woodenboatvb.com/vbulletin/upload/showthread.php?p=1555727#post1555727)
Or is this liability in case something in your shop damages the building that is owned by someone else?

Yup.

That's the problem. Usually the landlord insures his building. You, as a renter, insure the contents and product liability for the business.

[gary porter]

I've had troubles with the insurance companies as well. State Farm seems to be dropping all kinds of contractors and in my case they said if I didn't get someone else to cover my shop that my homeowners policy would be in jepardy. I did finally get it covered but the broker I went through put it out to seven or eight companies and only one would cover it. Seems "woodworking" is the key problem. I needed to cover not only my shop and contents, my wifes art studio is upstairs,
but I also needed to cover other peoples property. I had sold a boat but it was only half done and I needed to cover their investment as well as mine. It may be that we won't be able to get insurance at some point as the companies seem to be trying very hard hedge the bet so to speak. Now they want me to cut a 30' swath around my house for fire safety. The company that covered my shop did come out to inspect it and dust collection was a big plus for them as well as smoke detectors.. I would think a sprinkler system would help a lot.
Gary

[Bruce Hooke]

Quote:
Originally Posted by Bruce Hooke http://www.woodenboatvb.com/vbulletin/upload/images/buttons/viewpost.gif (http://www.woodenboatvb.com/vbulletin/upload/showthread.php?p=1555727#post1555727)
Or is this liability in case something in your shop damages the building that is owned by someone else?

That's the problem. Usually the landlord insures his building. You, as a renter, insure the contents and product liability for the business.


Here's what I think the issue is. Say something goes wrong in the woodshop and a fire starts (e.g., from oily rags not properly discarded) and the building burns down. Sure, the building owner's insurance will step in, but they in turn are going to look around to see if there is anyone they can go after to cut down on their liability. Any guesses who they are going to go after? Yup, the owner of the business where the fire started, especially if the fire can in any way be traced directly to equipment owned by that business. This is what Hughman needs insurance against. The insurance company that insures the building may even have insisted that all tenants carry such insurance so that the insurance company is only really liable for problems that start in the "public" parts of the building.

Finally, keep in mind that it would not just be the building owner's insurance company coming after you, it would also be the insurance companies that insure the property of any of the other tenants.

Damn this is depressing. I'm afraid I don't have any clever solutions to offer, but it is good to at least clearly understand the problem.

[Gary E]

I think your right Bruce...

For the first time in my life I have to have "renters" insur... not to cover the junk in my place, cause I am perfectly able to self insure. The managment want ME to pay if the intire building burns... I asked them if they have insur? the answer I got was..."What you dont like it here???"
Maybe I can arange to fall and hurt something some day...

[Bob Perkins]

fyi - Homeowners insurance will not cover a home shop if it is a business. I called my insurance guy a while back on this topic. I also got replacement coverage for contents in case something bad happened. Prorated coverage will not help much.

Then keep track of what you have (I take pictures and have purchase history in Quicken) and hope you never need to use the insurance guy!

[kc8pql]

fyi - Homeowners insurance will not cover a home shop if it is a business.

That's been my experience too.