what/when should i consider business insurance?

[Vance C.]

I am possibly going to start heat treating / grinding patterns for an online company, and was wondering what kind of business insurance i should consider getting, if any, because this wouldnt be a "full time" gig, i would like to do it as inexpensively as possible, while still getting good coverage. any ideas of who to talk to or what coverage to get?

 

[EdCaffreyMS]

Insurance on a Knifemaking or Bladesmithing shop is VERY difficult to find, and when you do, it is expensive! It's highly unlikely that your home insurer will even touch it. When I first started looking for shop insurance many moons ago, I started with my home Owner and vehicle insurer....nada. As soon as I mentioned "knifemaking" or "Blacksmithing" pretty much every company just flat told me they would not insure me. Those couple who said they would, were nothing short of "smoking crack" on the cost. I do not carry any liability insurance, simply because I could never make enough money to pay the premiums.

My solution was to joini ABANA (Artist Blacksmith Assoc of North America).....they have a "group" plan setup through The Hartford company out of New York. The premiums are still pretty high, but they are one of the few who will insure folks like us. It does not include any liability, it only insures my shops and their contents.

Maybe someone out there knows something I don't, but

inexpensively as possible, while still getting good coverage

... I just don't think there is any such thing.

 

[Vance C.]

thats kind of what i figured/ feared. i mean as long as my blades are good, people shouldn't have too much of a reason to sue me or anything haha

 

[Mike Carter]

Most insurance companies don't sell in all states. I have a policy with Auto Owners Insurance (based in Michigan). It covers my shop, my table/booth when I set up at shows and includes $1M liability for about $500 per year. Yes, it is expensive but it was the best deal I could find for the coverage.