Insurance coverage

[tvs]

I am in the process of moving to a new location, which requires certain insurance coverage as part of their lease agreement. I have been unpleasantly surprised to find out that insurance companies do not want to provide insurance for start-up woodworking companies. Could any of you recommend an insurance company in this niche?

[jay]

It is not just for start-up woodworking companies. A lot of insurance companies are scared spitless of all woodworking firms.

[jkforney]

Often, at the large woodworking shows, a company call Lumbermans Mutual (getting the name from memory) has a booth. You might try them. I did a google search and came up with one in Indiana.

John Forney

[elcruisr]

We are covered by the Hartford Company, no problems. You will find things vary from state to state.

Eric

[beacon14]

CNA and Central both have woodworking specific programs, but the insurance market has gotten very tight since 9/11, and it may be dificult to find anyone willing to cover a new company without a track record.

Don't give up - dificult does not mean impossible.

Good luck

[nehdad]

Well it seems that this has become a long thread so I thought I would add my 2 cents for what it is worth. I own a marketing company in S.E. Wisconsin and have been fairly successful in my endeavors. I took on the task of helping a struggling aftermarket vehicle accessories manufacture try to save there company from bankruptcy. Unfortunately it was to late the company did not have the staying power or the mindset to compete in today’s market.

I am only starting this on a low note to tell everyone that you can make it and the ShopBot tools and staff are behind you 100%. Before the company decided to “give up” I was able to make some very solid contacts in the aftermarket industry. I saw the profit potential and decided to go ahead and make the pitch but of course they needed to see a sample of the work I could produce.

After much research I stumbled on the ShopBot website. I was amazed at the active forum sections and when I called for information I was shocked at how professional I was treated. In my business you expect to be treated with some mutual respect but after talking to used equipment brokers quoting me $25K - $50K for used equipment and brushing me off when I told them it was out of my range. I talked to Donna at ShopBot I was being treated with respect for a potential purchase of under $8K!!! It reminded me of why that manufacture I discussed earlier is out of business and why companies like ours will go on.

At this point I was almost sold (Never buy the horse unless you see her run) Donna suggested I go to the show that weekend in Chicago. I met John Forney there and I have to tell you ShopBot could not have a better representative at a trade show (and I have been a presenter at different shows for the past 10 years). Although the booth was busy he still took the time to answer all of my questions about the hardware, software and how the ShopBot could handle my application.

That was it for me I left that day knowing I was going to buy one!! But being in business as long as I have I have learned some valuable lessons. Do not bet the farm if you only have to bet the cows! So with that in mind I decided to purchase a used ShopBot. The only problem is I needed one now so I could get my samples out. I tracked down a used unit in Wisconsin, unfortunately it was a old PR96 cable operated unit. I thought at least it would get the samples out and if it works maybe we can expand down the road. Well to rap this up it did work, better than I could ever imagine. After having the unit for two days I was able to setup the table, configure the software and start cutting my designs.

All of the parts I have cut out were perfect and the company I supplied them to has given a verbal purchase order (Faxing a hard copy) totaling just over $24,000 and is expecting orders to be a minimum of $10,000 per month! I am getting ready to purchase another unit, this time going to a new PRT96 and can not wait to see the results that machine will produce.

What I would like to say to anyone questioning if the ShopBot has a good financial outlook as far as business then look at the parts you will manufacture, the accuracy you require and the savings you will have on hiring employees. And most importantly remember stay away from the old mindsets. Today’s customers are more knowledgeable and in this economy, more financially deficient then any other time in the past decade. If you cater to there needs you will win them every time!


Thank you ShopBot’s Staff and John Forney for all of your help and we will be doing more together in the near future!!


Rich Henry
Pro Marketing, Ltd.

[bjwat@comcast.net]

Rich,
That's a great story!

So I say in a Marlin Brando/Godfather voice: "Welcome to the family!"




-Brady

[nehdad]

Oh Thank You Godfather

[gerald_d]

Rich, I am glad that I never heard about watching a horse run before buying it - otherwise I wouln't have been here. Saw the SB on the internet, followed the Forum and wired my money across the Atlantic. That was 3 years ago, and still havn't seen another SB or met face to face with another SB'er. Spoke to one SB'er on the telephone, but my accent spooked him completely.


So, let me welcome you in another strange voice!
*bangs on a drum and dances around the fire*

(You will see that I do the night-shift here on the Forum. Don't be surprised if you find me hanging around here from 1am - that is 8am our time.)

[jay]

Back to the topic.

Thomas,For the last two months I have been working with three insurance brokers, as they each represent different companies, here in Thunder Bay. In Ontario there is no insurance company willing to write coverage for our (new to them) woodworking shop. I have asked specifically what the problem was only to be told the risk does not meet their underwriting criteria. Interesting. OH, excuse me we did have one company willing to insure, with $1,000 deductable with a $4,500 premium. I would rather continue to self insure for that kind of money.

[kerrazy]

4500.00 is cheap, try and add the risk of having Developmenatlly disabled people into the mix.....Yeow we get hit hard for insurance
Dale

[jay]

Dale, I remember only too well. Remember I worked for the March of Dimes for many years. I just thought that without having the presence of challenged people present the cost would be more reasonable. In my previous business experience working in the Pulp and Paper mills where our exposure was in excess of 10 million dollars the premiums were considerably less than the recent ones quoted. Oh well. . . I quess I have done enough bitching for tonight.
Cheers.