Sunny Daze Design Pottery & Crochet Studio
I am building a pottery studio on my property (in the backyard of my home).
It will be a small studio 14 x 10 but I will be offering pottery & crochet
classes. Do you think I should get any insurance? My home insurance will
cover fire, theft, etc, but should I have insurance if I am teaching
pottery????
--
*Lisa Elbertsen
www.LisaElbertsen.com
Sunny Daze Design Pottery & Crochet Design Studio
Squamish, BC Canada*
Bonnie Hellman on sun 19 sep 10
Hi Lisa,
I think you need to speak with your insurance agent. My guess is that your
home owners' insurance does NOT cover business liability. When you offer
classes in your house for which people pay you, it sure sounds like a
business.
If the company that insures your house does not offer business insurance,
you'll need to find one that does.
Business insurance can cover such situations as: loss of business property
(as in a fire), injuries to your customers in your business (whether or not
you think they were caused, even in part, by the physical conditions in you=
r
business), possibly theft, and probably a lot of other situations.
If the business is providing you with significant income, then you might
research "loss of revenue" insurance.
If I had customers/paying students in my studio at the very least I'd want
liability protection. I do not believe that my homeowner's insurance will
offer this for a business in my home.
Some businesses choose not to pay for theft insurance to protect their
inventory, because they feel the cost is too high relative to the risks.
However, you can't make this choice unless you research what the various
insurances will cost.
As someone else recently pointed out on clayart, if you think you can
"pretend" that you are not operating a business when you are, you need to
think again. This is unlikely to work if there is a claim.
Best,
Bonnie
Bonnie D. Hellman, CPA
Ouray, CO 81427
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-----Original Message-----
From: Clayart [mailto:Clayart@LSV.CERAMICS.ORG] On Behalf Of Sunny Daze
Design Pottery & Crochet Studio
Sent: Sunday, September 19, 2010 10:49 AM
To: Clayart@LSV.CERAMICS.ORG
Subject: Do I need insurance to teach pottery?
I am building a pottery studio on my property (in the backyard of my home).
It will be a small studio 14 x 10 but I will be offering pottery & crochet
classes. Do you think I should get any insurance? My home insurance will
cover fire, theft, etc, but should I have insurance if I am teaching
pottery????
--
*Lisa Elbertsen
www.LisaElbertsen.com
Sunny Daze Design Pottery & Crochet Design Studio
Squamish, BC Canada*
William & Susan Schran User on sun 19 sep 10
On 9/19/10 12:49 PM, "Sunny Daze Design Pottery & Crochet Studio"
wrote:
> I am building a pottery studio on my property (in the backyard of my home=
).
> It will be a small studio 14 x 10 but I will be offering pottery & croche=
t
> classes. Do you think I should get any insurance? My home insurance wi=
ll
> cover fire, theft, etc, but should I have insurance if I am teaching
> pottery????
If your are running the pottery studio as a business, or if the insurance
company finds out you are teaching pottery, your home insurance will NOT
cover you!
You need to have business insurance that will include liability insurance
(get at least 1 million dollar policy) in case somebody sticks a crochet
needle in their eye.
I would also suggest you get a 1 million dollar personal liability insuranc=
e
policy. It's not that expensive, mine's about $150 per year. Decided to get
mine because I teach and who knows what I might get blamed for.
Bill
--
William "Bill" Schran
wschran@cox.net
wschran@nvcc.edu
http://www.creativecreekartisans.com
Sunny Daze Design Pottery & Crochet Studio
Thank you all for your great advice! I would rather pay $150 to cover my
butt and I will not ask my home insurance company. It should help as that
is in my husbands name and mine will be in my company/personal name.
Thanks again!!!
Lisa
On Mon, Sep 20, 2010 at 5:27 AM, Alice DeLisle wrote:
> Be careful about how you approach this and make sure your endeavor is
> worth the additional risk and expense. I know a hobbyist potter who deci=
ded
> to have a one day pottery event (show and sales) at her home. She contac=
ted
> her insurance agent to ask about additional insurance to cover the event.
> The insurance agent immediately canceled her homeowner's insurance becaus=
e
> this event made her home a business. The insurance rates skyrocketed. Ev=
en
> though she decided not to have the event, she had difficulty getting norm=
al
> homeowner's insurance again.
>
> Alice DeLisle
>
> wanderland@att.net
> http://www.etsy.com/shop/IslandTextures
>
>
>
>
--
*Lisa Elbertsen
www.LisaElbertsen.com
Sunny Daze Design Pottery & Crochet Design Studio
Squamish, BC Canada*
Bonnie Hellman on mon 20 sep 10
I am not an insurance professional, but personally I think that $1 million
is a minimum for liability insurance. Again, once you get such a policy
(which may require increasing coverage for home and auto) you ought to pric=
e
higher levels of coverage. $2 million to $4 million won't seem too high if
you are ever sued for damages, particularly if there are multiple people
involved and their loved ones.
Bonnie
Bonnie D. Hellman, CPA
Ouray, CO 81427
-----Original Message-----
From: Clayart [mailto:Clayart@LSV.CERAMICS.ORG] On Behalf Of William & Susa=
n
Schran User
Sent: Sunday, September 19, 2010 1:33 PM
To: Clayart@LSV.CERAMICS.ORG
Subject: Re: Do I need insurance to teach pottery?
On 9/19/10 12:49 PM, "Sunny Daze Design Pottery & Crochet Studio"
wrote:
> I am building a pottery studio on my property (in the backyard of my
home).
> It will be a small studio 14 x 10 but I will be offering pottery & croche=
t
> classes. Do you think I should get any insurance? My home insurance
will
> cover fire, theft, etc, but should I have insurance if I am teaching
> pottery????
If your are running the pottery studio as a business, or if the insurance
company finds out you are teaching pottery, your home insurance will NOT
cover you!
You need to have business insurance that will include liability insurance
(get at least 1 million dollar policy) in case somebody sticks a crochet
needle in their eye.
I would also suggest you get a 1 million dollar personal liability insuranc=
e
policy. It's not that expensive, mine's about $150 per year. Decided to get
mine because I teach and who knows what I might get blamed for.
Bill
--
William "Bill" Schran
wschran@cox.net
wschran@nvcc.edu
http://www.creativecreekartisans.com
Alice DeLisle on mon 20 sep 10
Be careful about how you approach this and make sure your endeavor is worth=
the
additional risk and expense. I know a hobbyist potter who decided to have =
a one
day pottery event (show and sales) at her home. She contacted her insuranc=
e
agent to ask about additional insurance to cover the event. The insurance =
agent
immediately canceled her homeowner's insurance because this event made her =
home
a business. The insurance rates skyrocketed. Even though she decided not t=
o
have the event, she had difficulty getting normal homeowner's insurance aga=
in.
Alice DeLisle
wanderland@att.net
http://www.etsy.com/shop/IslandTextures
KATHI LESUEUR on mon 20 sep 10
On Sep 20, 2010, at 12:19 PM, Sunny Daze Design Pottery & Crochet Studio =
=3D
wrote:
> Thank you all for your great advice! I would rather pay $150 to cover =
=3D
my
> butt and I will not ask my home insurance company. It should help as =3D
that
> is in my husbands name and mine will be in my company/personal name.
>=3D20
> Thanks again!!!
> Lisa
>=3D20
No! No! No! Sorry to shout but this is an approach that will lead to =3D
disaster if you have a loss. If you are running a business out of your =3D
home (and especially if it involves people coming into your home) the =3D
insuring company for the home must know about it. Failure to do so will =3D
cause the insurer of your home to deny a claim. It doesn't matter who's =3D
name it is in. It matters what is being insured. I doubt that any =3D
reputable insurer will insure your business venture for $150 without =3D
wanting information of where you are conducting business and the nature =3D
of the business ( and even with it information $150 is a low estimate) . =
=3D
If you manage to get someone to do it without adequate information you =3D
will be in the middle of a war if you have a loss. The business insurer =3D
will say that the loss should be covered by the homeowner's policy and =3D
the homeowner insurer will say that it is the responsibility of the =3D
business's insurer. In the end probably no one will cover the loss =3D
citing omission of information. You need an insurer that deals in both =3D
homeowner's and commercial insurance. They can craft a policy that will =3D
cover all contingencies. To do less is to invite problems.
KATHI LESUEUR
http://www.lesueurclaywork.com
fran johnson on thu 23 sep 10
My insurance agent and I play a game when it comes to me asking questions a=
=3D
bout my insurance.=3D20
She told me all questions are reported to the company- just as Alice learne=
=3D
d. And can effect your insurance inmany ways.
=3DA0
So I ask hypothetical questions about the information I need. And I don't s=
=3D
ay I am the person, but an unknown individual. The agent knows what I am do=
=3D
ing, after all she suggested it, but she doesn't have to report it.=3D20
=3DA0
Stupid game.
=3DA0
Fran
=3DA0
--- On Mon, 9/20/10, Alice DeLisle wrote:
From: Alice DeLisle
Subject: Re: Do I need insurance to teach pottery?
To: Clayart@LSV.CERAMICS.ORG
Date: Monday, September 20, 2010, 7:27 AM
Be careful about how you approach this and make sure your endeavor is worth=
=3D
the
additional risk and expense.=3DA0 I know a hobbyist potter who decided to h=
av=3D
e a one
day pottery event (show and sales) at her home.=3DA0 She contacted her insu=
ra=3D
nce
agent to ask about additional insurance to cover the event.=3DA0 The insura=
nc=3D
e agent
immediately canceled her homeowner's insurance because this event made her =
=3D
home
a business. The insurance rates skyrocketed.=3DA0 Even though she decided n=
ot=3D
to
have the event, she had difficulty getting normal homeowner's insurance aga=
=3D
in.
Alice DeLisle
wanderland@att.net
http://www.etsy.com/shop/IslandTextures
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