claystuff on sat 28 sep 02
Home vs business insurance?
I am wondering what other potters do regarding home/ business insurance if
they work out of their home studios ( basement, garage), occasionally sell
at a craft show and collect sales tax, and view pottery as a hobby primarily
but are a declared small business. We recently tried to switch to a new
home owner's policy but were rejected due to the kiln in the basement and
the fact that I am considered a small business. So...
How much is insurance for a small pottery business? Any suggestions as to
companies?
Our present insurance company doesn't know about the kiln ( cause they never
asked) so are we really insured for it's use presently?
Should the fact that there is a kiln in the basement be declared up front??
Any suggestions, advice would be much appreciated!
Debby in NJ
John Baymore on sun 29 sep 02
I am wondering what other potters do regarding home/ business insurance =
if
they work out of their home studios ( basement, garage), occasionally se=
ll
at a craft show and collect sales tax, and view pottery as a hobby
primarily
but are a declared small business. We recently tried to switch to a new
home owner's policy but were rejected due to the kiln in the basement and=
the fact that I am considered a small business. So...
How much is insurance for a small pottery business? Any suggestions as t=
o
companies? Our present insurance company doesn't know about the kiln (
cause they never
asked) so are we really insured for it's use presently?
Should the fact that there is a kiln in the basement be declared up front=
??
Debby,
I hate to always be mentioning this .... but please check the archives...=
..
this insurance subject has come up REPEATEDLY in the past number of
years.... and there will be a LOT of great info in great detail residing
there. The CLAYART archives are a WONDERFUL ceramic arts database that ar=
e
just RIPE for the picking. And if the subject has been covered already,
you'll get a lot of info faster than waiting for all the individual repli=
es
to trickle in over a few days.
Some potters have insurance... some do not. Some practice their business=
legally...and some do not. Some are comfortable with exposed risks......=
and some are not. Some are not aware that there ARE any risks. =
You'll get advice on this that ranges from "Don't worry about it" to "Hir=
e
a lawyer, incorporate off shore, and carry a gazillion dollars of
insurance". It's pretty much just like when it comes to safety issues y=
ou
hear "I eat 10 pounds of that stuff every day and I'm fine"...... to "Sea=
l
yourself in a ziploc baggie". Just a reflection of the "glass half full"=
folks and the "glass half empty" folks. =
Take what you learn.... and then make some educated decisions.
I am "assuming" (I know..... bad! ) that you live in the USA??????? A=
lot depends on what country you are in and the laws that apply.
As to potential "liability issues": the more you "own" .... the more you=
have to lose. If you have an expensive home, stocks and bonds, big bank
account, nice cars, a vacation home, and so on..... you are a more likely=
"target" for a product or premises liability suit than a potter who lives=
in a teepee and owns pretty much nothing.
But the flip side is that if you carry a large amount of insurance.......=
.
that TOO makes you a select "target" .
Unfortunately, here in the USA we live in a world where you have to put a=
label that says "hot" on a hot cup of coffee to cover your $#@.
If you read the "fine print" on your homeowners policy.... I would be
surprised if it doesn't mention somewhere (in tiny print) that if you hav=
e
not been truthful with them about any aspect of the property they are
insuring.... the policy can be voided. So "not telling" is NOT a
solution.... it just makes you THINK that you have it out of the way. Th=
at
may just leave you paying premiums until something happens..... and THEN
finding out that your weren't covered. Insurance companies are in the
business of making money.... not writing insurance. If they can get out =
of
paying on a claim...... no matter WHAT their commercials say...... they a=
re
happy. =
Then, if you are also carrying a mortgage on your house......... you will=
likely find in the tiny fine print of what you signed THERE that if you
"break your covenant"..... which means that you do something that they
don't allow...... such as to NOT have adequate homeowners insurance in
place on the property to protect THEIR interests...... they can call the
loan due immediately. ("Hello Debby.....could you please send us that
$100,000 you owe us by next Monday?" ) So you don't want to go THERE=
either.
See if Holyoke Mutual Insurance Company (Mass.) writes in your state....
they have a homeowners policy that will cover such "incidential secondary=
uses" on a property.
Call your insuracne agent, tell him/her what you need.....get some qoutes=
,
and do it right.
Oh....... make sure that your home is approved for a home business by you=
r
town. If you are an "illegal" business... that too could possibly end up=
voiding your homerowner's policy even if the insurance company allows the=
incidential use under normal circumstances. And it might get you in
trouble with the town at some point too. Might even mess up true busines=
s
insurance.
I carry $2 mil in combined product/premises/general liability through the=
American Craft Council program. It also covers tools, work in progress,
inventory, and so on. Cost is reasonable...... about $700 a year for
mine...... but I have some custom options set up too. A lot depends on t=
he
exact conditions that you set up for your coverage as to the the exact
premium....which varies by the amount of tools and stock and such that yo=
u
typically have , and so on. The generally low cost of such insurance for=
craftspeople tells you that the incidence of lawsuits and such are not re=
al
high . But only YOU can decide if such exposure is something you are
comfortable with.
Good that you are addressing this issue.... even though it is not a
pleasant one to confront. Life is SO complicated these days.
Best,
..............................john
John Baymore
River Bend Pottery
22 Riverbend Way
Wilton, NH 03086 USA
603-654-2752 (s)
800-900-1110 (s)
JohnBaymore.com
JBaymore@compuserve.com
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