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By Stiffchick
#3647
Hi! I just made an appointment with an accountant to start making this all legit, and i was wondering about insurance. For those that have it, would you mind sharing any info? How much your coverage is for, favorite/least favorite insurance company, any special add on stuff? Do you have seperate policies/companies for your equipment vs liability stuff (I don't know anything about insurance, so I'm sorry if I'm not making sense)
Right now I just sew out of my living room, hopefully in a few years I can add on a shop to my garage. TIA!
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By John
#3648
Great and interesting question @Stiffchick. Ill do my best to share with you my experience with insurance but I first want to say that this is just what I do or have done. Its just my opinion. I'm not a lawyer or insurance broker so please take for what it is. Obviously when you have a catastrophic event insurance will hopefully save you. So you have to weight out the risk and probability of something happening. Then decide if you think its worth it to pay for insurance.

I personally think that garage insurance it way overpriced, not needed and a bit of a scam. I was required to carry insurance by the land lord of the shop I rented when was in Phoenix. It was super expensive , I never had to use it and they were a pain in the ass. They would come inspect the shop randomly and make sure we were up to their safety codes. Basically just looking for reasons to raise the price of the policy. oh and dont forget there is a deductible so most things that are major aren't covered.

If your working out of your house I wouldn't worry about it. I'm a big supporter of keeping startup over head as low as possible while you build your customer base. Just make sure your customers know that their project inst covered for theft, fire, est while at your house and to make sure their insurance covers them. Most customers that know you work from home already assume this anyways. I currently work from home, dont have employees and chose to go with out garage insurance.

Again that just my opinion. I'm really interested the hear other peoples ideas on this topic.

@Trimmerman79 what is your experience with your shop and insurance?
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By Cody
#3659
I agree with @John being upfront and honest is best. I also work from home, and I understand my insurance correctly as I’ve talked with my agent. My home insurance should cover the majority of the stuff I’d need for work. I also feel it will cover customers belonging up to a certain price. Now you have me wondering how much I’m actually covered under my home and garages. :joy:
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By Trimmerman79
#5997
I have garage insurance on vehicles I work on as most of the work I do is electrical system in vehicles (Mobile Audio, System building, fabrication ect) It covers me even on test driving of the vehicles. As I want to make sure everything is tight and secure after customer receives the vehicle back. Since I work on a lot of higher end cars that can cost up in the six figures I want to be covered if something goes wrong. I know since my shop is on my property, my home insurance won’t cover customers vehicles or projects. To me it’s well worth knowing I’m covered in the event something goes wrong outside of my control( weather, theft, fire ). I have yet to ever use it. In case if I damage anything myself, most likely I would pay out right or some kind of store credit to resolve the problem vs using insurance claim. Then your rates could change if you have claims frequently. It covers vehicle that are damaged up to $100k each. I pay $165 every quarter of the year ( $660 / yr). It’s a general liability garage policy, covers customer that comes on the property and could get hurt and try to sue your business up to 1 million dollars each occurrence. Or if customer drives their vehicle and get in a accident caused by my installation work , million dollar coverage. Another reason I’m selective on the jobs I take in the door. Sometimes I turn down jobs that could pose a liability issue.
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By John
#6024
Great insight @Trimmerman79 . Thanks! Your right and at $660 a year thats a no brainer.

When I had my shop in Arizona insurance was almost $1000 a month.

Do you mind sharing who you used and what plan you have.?
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By Trimmerman79
#6030
John wrote: Wed Sep 18, 2019 2:22 am Great insight @Trimmerman79 . Thanks! Your right and at $660 a year thats a no brainer.

When I had my shop in Arizona insurance was almost $1000 a month.

Do you mind sharing who you used and what plan you have.?
Wow :scream: $1,000 a month! I use Erie insurance, it’s call Garage Auto liability / garage keepers liability policy. That what they offer here in MD. It may vary state to state. I also don’t have my tools covered as this is on my property. Which I can keep a better eye on things vs having a shop across town. I have 24/7 security. So I’m not concern with theft. Which can save a lot if you insurance very little. I figure my home might cover my tools if all my stuff was stolen. Since it’s on my property I would be covered.
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By BigRig
#6038
@Stiffchick ,

I am thinking you really could save the extra cost of insurance. Accountant, business licence, insurance etc... All this takes from your pocket come year end. What were you feeling at this stage working from your living room you needed to insure?
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By John
#6060
Thanks for the information @Trimmerman79. Super helpfull!
Yeah I also had a paint booth at my shop so that may have been why it was so expensive.
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