Greetings,
For the past 8 years we’ve operated a small company making cedar planters for local gardeners. As part of that, we purchased business insurance for the effort and we were recently notified that our insurance company, Farmers, was dropping all coverage for businesses “making things with wood.” Our search for a replacement underwriter has been fruitless.
Suggestions?
Don
I did a search and there seems to be quite some companies that do liability and property damage,medical, liability, for wood working businesses.
Herb
I’m using https://www.thehartford.com/
Business insurance is one of those thing that its worth going through an insurance agency for as they can shop around the non standard stuff. I’m currently using https://www.bobwallin.com/ but they are new to me so I don’t know them well enough to recommend yet.
Thanks for the input Andy, I am sure that it is good these days to protect yourself.
HErb
Andy,
Thanks for the suggestion. We are working through our insurance agent (covering other stuff like the house, cars, etc.). Our agent is looking for another underwriter for us but, so far, no luck. I’m sure this is a problem we can solve but I was surprised that underwriters consider woodworking such a bad risk.
Herb,
Thanks for the suggestion - we’re hoping our current agent, who is with Farmers, can find something for us but it may turn out that we’ll have to just hunker down on the internet and do some research.
Don
Hi Don, do you have an update on the insurance? Farmers is my main insurer too, but they have dropped a couple of other policies lately and switched me over to some other companies. (not woodworking)
Herb
Herb,
Farmers couldn’t help me out and a couple of options suggested were infeasible given the tiny size of the business. We just opted out and are scaling back the business; lots of other ways to satisfy my sawdust habit.
Good to hear from you!
Don
Don, was it just a liability policy you were looking for. I have carried a 1million$ Umbrella liability policy for years and it wasn’t too expensive,that covered me for any and all liability claims against me.
Herb
Herb,
Yup, I just wanted liability insurance. Who are you insured with?
Thanks,
Don
MetLife for years, through a Farmers agent, then it went to Farmers.
HErb
Herb,
That’s just what I was looking for - and we use Farmers. Our agent wasn’t able to come up with options. I’ll point her in the right direction.
Don
Here is a link i found. They say less than a dollar a day for 1M.
https://www.farmers.com/umbrella/
Herb
Herb,
Thanks, I’ll send this along to our agent.
Don
There’s a big difference between a business and personal umbrella policy.
Once you mention its a business then their actuarial tables have too many variables and there’s not enough similar policies to be able to work out a rate. e.g. what’s the access to the tools, who has access to the tools, do you have employees. Power tools always seem to scare insurance companies.
Also if you are operating the business from your home you have to worry about invalidating your home insurance by doing so. Some home insurance policies will let you add a ‘business’ rider but again once you tell them it is woodworking they may decline to add that and drop your home insurance…
and just to depress you more depending on how your personal health/life insurance works you should read very carefully about what is valid there. Cut your finger off while working on your own house covered - house accident. Cut your finger while working for ‘Cedar Planter LLC’ - your health insurance company might want to talk to your liability insurance company about getting paid back… and then of course the lawyers get involved…
I have no idea what will not apply to you but it can get messy quick.
Those are good valid concerns. I was taking it from a hobbyist standpoint on the woodworking and for boating,and shooting at the range,and maybe a firearm mishap at home. Also if someone sued me for harm when breaking into my home,and for so many other things that people frivolously sue for these days.
Herb
Andy,
Thanks for the response - it’s consistent with what our insurance agent, a Farmer’s agent, told us. We have an Umbrella policy but our agent assured us it’s not intended to cover a business.
I’m OK letting the business (building planters for gardeners in the Seattle area - with a particular focus on custom work) go dormant. Maybe at some point the insurance companies will relent but, until then, I have plenty of other interests.
Thanks again!
Don
Herb,
My insurance agent confirmed what Andy said - our umbrella policy isn’t intended to cover a business.
I’m OK with the business going dormant at this time. The purpose of the business was to give me an opportunity to exercise my woodworking skills and it served that purpose admirably (while also allowing me to support my sawdust habit without stealing from the family’s vacation fund!).
I’m now working on a pile of oak pieces left over from a friend’s flooring project. I used a planer I bought from Tom Howorth a couple of years ago to get them into shape to work with - I’ll be building some frames to exercise my skill at various joinery.
Take care,
Don
I agree with you and Andy, I have never been in business wood working. My wife was in business making Victorian lampshades for years but it was a by order to individuals basis only. She did sell quite a few to a couple of antique shops off and on , but they were the ones that dealt with their customers, or to complete old lamps they were selling in their stores.
Herb
