Is your shopbot insured?

[harryball]

For the straight commercial guys in a commercial building I know you buy your insurance and you're probably on top of it.

What about the semi-commercial heavy hobby guys working from home or out back in a detached building?

I was just informed that our home owners under no way form or fashion would cover the shopbot, hobby or not. This is in direct contrast to what I was told last year when disclosure was all that was required followed by a rate change. This information was followed up with the fact that they would not write commercial insurance at my home location to cover "industrial equipment".

So, how is the second group of guys above insuring your bot?

Robert

[GlenP]

Hey Robert, I don't know if we are different in Canada "eh" but my woodworking tools are in my detached 20 x 28 shop and my insurance told me that the building is covered for a certain amount and the contents to another amount which certainly would not replace very much of my equipment. They told me I should have business insurance to cover the equipment, people coming to my shop (customers) and it also covers me transporting goods both raw and finished to a certain amount. The other alternative was to put insurance on my equipment only that covered them in case of theft or fire. Have done neither yet. I need to buy or build a bat house, email me out of the forum to chat about details or how I can buy one.

[handh]

Robert,

I have commerical insurance because I am commerical. But just to let you know, my brother has a hobby shop and is covered under his homeowner policy as long as you do not sell any products, if you do you better look into commerical insurance. My shop is located on the same property as my residence and have the two policies link together I forget what they call that. I would be very careful and concerned that if a customer stopped by the shop and happened to get injured that my insurance wouldn't pay because you are running a business out of your home. Hope this helps!

[handh]

Robert,

Also even on my commerical policy the large machines are itemized and proper insurance is place on each one.

[rcnewcomb]

Our shop is located on my partner's farm. The shopbot is covered by the policy that he and his wife have, similar to the tractor and combine.

[beacon14]

The insurance issue is the one stumbling block that almost precluded my building my shop onto my house - the company that had my commercial policy in a rented commercial space told me they would have to drop me if I relocated to my house - even though I had been paying them premiums for close to 10 years without a claim they would not relent. No other company would cover a home based shop. They were mostly concerned that if something did happen there would be a problem determining if it was business related or personal. Finally the company that already insured my house and cars and which also issues commercial policies agreed to cover my business. Unfortunately they did not tell me that by building a wood framed shop my premium would go up over $3,000/year - if I had known that up front I might have used a different construction method or installed sprinklers. They figure that if I have a fire I'll lose everything - shop, home, contents - gulp.

In any case I'm covered but I shudder to think what will happen if I have to file a claim or if they change their mind. Nothing is itemized but I do insure the full value of all my machines, inventory, work-in-progress, etc. because of the "co-insurance" clause, which states that after a disaster they will only pay the percentage of the claim that corresponds to the percentage of my assets which I have insured.

[jamesgilliam]

Interesting subject. I just heard back from my insurance lady about 15 minutes ago. Yes it is late but we go to the same Church. By her understanding of the policy I have a limited amount of coverage for the ShopBot and other tools in the shop area. Of course we are living in part of the offices and finishing room for now, but she sees no probem in coverage conversion when I get the house built and we move into it. Customers are covered as far as personal liability anywhere on the property, about the same as homeowners does, and my old truck, also with her, covers products, both raw and finished goods up to 10K. The old insurance on the house we are selling didn't cover anything business related, but with the new shop and house plan we went with the same company that has had my auto insurance since I have been driving, and I don't mind telling you dodging dinosaurs was alot of work.

[harryball]

Interesting posts... I will be making more phone calls Monday.

Insurance of all types is rapidly gaining the same respect I have for IRS and credit card companies... and government efficiency.

Robert

[ed_lang]

My shop is located on the same property that my house is on. I have a separate rider that covers my business part of the property, both real and personal.

When I have employees again some day, I will have to convert to a full commercial policy as I have had with these folks in the past, in the same building I am in now.

It pays to talk to the agent several times a year.

Good luck.

[Gary Campbell]

My shop is all commercial. In the last month or so I added $25K to the policy for the Bot & related equipment (all had to be listed) The lowest of 3 quotes was over $800/yr. and didnt include flood.

[gripus]

You need to be careful what you tell the insurance company you make. I make pistol grips out of wood and acrylic and for over a year the cheapest quote I got on contents and liability was $1200 a MONTH. They said it was because I made gun parts. They relly didn't have a problem with the acrylic ones but since I also made wood ones they said they wanted more money. Go figure. I finally got some for $1200 a year but had to sign a waiver on product liability in case some idiot sued because they were shot with a pistol using my grips. Crazy world.

Joe

[handh]

Joe,

We build some furniture but mostly cabinets, I remember when I started out the insurance company wanted to know if I built chairs, the insurance was higher for that as well, people sue alot so the insurance companies know what to look for, so if anybody as we don't work on or build chairs, not worth the headaches.

Jeff

[harryball]

It does seem strange at times.

"You need to be careful what you tell the insurance company..."

While I agree with Joe... at the same time I don't. Yeah, I should keep my mouth shut but what if I did get sued would I be covered? I could assume that I would be and as punishment for not telling them I made widgets that could poke out eyes they would raise my rate or cancel me. But... what if buried in all the legalease is a "we don't cover liability on widgets that poke out eyes unless added to your policy" exclusion?

We went with our local Farm Bureau and have farm insurance which seems much more receptive to our work. They even want an article in their monthly newspaper about the importance of bats. Even so, we can have no "customers" on the property and we are engaged in "non-commercial" activites. I still don't fully understand it... we don't have walk in customers, we produce right here on the farm, it is ag and conservation related, we are non-profit... but is anything really "non-commercial"?

Well, suffice to say my shop and tools are covered without too much headache. My truck is under a full commercial policy and we have some liability coverage. As business grows I know I'm going to have to stay on top of this, especially once we conduct workshops at schools! I didn't even ask how ridiculous those conditions and exclusions are going to be. I'll probably have to wear a rubber suit and keep a video camera running at all times with 2 witnesses each with a witness of their own.

Robert