ol skool machinin wrote:Hey Ya'll!
My wife & I just moved to Unicoi, TN.
We left Charleston, SC in a cloud of dust!
I'm starting my own 1 man HOME machine shop as a sole proprietor. I have a manual mill, lathe, surface grinder, saw, & drill press.
Still in the process of setting up my equipment & getting organized.
My shop is on our land just 30 feet from the house, climate controlled.
So anyways, I need advise on a good small business insurance company.
I need 30k coverage on shop & 35K coverage on equipment & tools.
Any suggestions?
Thanks!
Randy
If you are operating this as a for-profit business you will have to have a business owner's policy written, which is separate from any insurance currently written for your home and property. Not only will your homeowner's insurance not cover any loss to the business, if something happens in your shop, e.g., a fire, that results in collateral damage to other structures, that loss won't be covered as well.
Coverage on tools, machines, supplies and the building itself should be written for "replacement value," not the values your are estimating. "Replacement value" compensates for the effects of inflation, and is a principle means of avoiding being under-insured. In addition to coverage on tools, machines, supplies and the building itself, your business policy should include coverage for loss of income arising from another covered loss—if the shop burns down, insurance will partially reimburse you for the income you weren't able to produce until the shop could be rebuild.
One more thing: purchase protection in the event you get sued due to defective product.
Any good insurance agent can arrange to properly insure your business. Incidentally, I recommend that you go with an agent who is an independent, not a captive agent working for one insurer like Allstate or State Farm. Independents work for you, not an insurer, so they will do more for you insofar as obtaining the best coverage at a reasonable cost.
