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Another insurance question

Joined
Jul 18, 2018
Messages
696
Likes
735
Location
Baltimore, MD
I know this question has been raised periodically, but I got a different response than I expected from my insurance company this morning. The recent discussion of limiting liability in the shop raised my anxiety level about possible liability related to customers/visitors to my shop if it is considered a “business.” I consider myself a hobby level turner, though I do sell a limited number of bowls, perhaps $2,000 a year +/-. I called my homeowners insurance company (the Hartford) to ask about getting coverage as a small craft business. After I described my situation to the agent, she researched it, and came back to tell me that as long as my sales were under $5,000 per year, this would still be covered under general homeowners liability and medical expense limits. I understand that this is not product liability, but more premises related issues (someone falls entering my shop, etc.). My biggest worry was that if it were “discovered” through a claim that I was operating a “business” it would risk voiding my homeowners policy. I was assured that this would not be the case.
I took notes that I’ll hang onto to document the call, and she also assured me that my inquiry and the response would be recorded in the event that a question were ever to be raised in the future. I wonder if anyone else has received a similar opinion from their insurer? I expect to sleep better going forward.
 
Joined
Oct 8, 2020
Messages
116
Likes
60
Location
La Porte, IN
While i'm sure it varies both by state and carrier, i got a very similar answer from our independent agent here in Indiana. (it's the agency i work for, in employee benefits, so half my sales and a fair number of gifts occur at my office desk. No hiding my sales!!)
earl
 
Joined
Dec 16, 2021
Messages
15
Likes
8
Location
Murray, KY
Coverage seems to be arbitrarily decided by each company’s underwriters. I am strictly a hobby turner; I never handle any money. My “customers” make a contribution directly to our local Humane Society. I never know the amount or even if the transaction was completed. One insurer wouldn’t cover my shop because visiting “customers” would constitute commerce, and thus be a business enterprise. The insurer I have now covers all aspects of coverage, including product liability, under my homeowner’s policy. I agree that documentation of phone conversations would be a good idea; email might be a good idea, as well.
 
Joined
Feb 6, 2010
Messages
2,428
Likes
1,293
Location
Brandon, MS
Been so long I am not sure if I asked about Liability but did ask about machine coverage since shop is detached and yes it is covered. It seems that I asked another time about liability since I was having a club meeting in shop and it was covered for that. This is thru USAA for all you vets
 
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