I don't operate my shop as a commercial enterprise. I got into machining to
develop "construction devices"...... tools. I did have product liability
insurance when trying to sell my first "wonder" and will have it next time
out.

For what you describe, I'd say the need for insurance depends more on the
scale of what you are doing, than on what you are doing.
IOW if you advertise and hold yourself out to the public as a general
machine shop you might want some kind of insurance......... but might not,
if you are following customer directives and you are not an OEM.

Many disasters just never happen.


Ken Sterling wrote in message
s.com...
Ken wrote:
Gang...
I have a house and a remote garage. All property was insured by
one Company back in 1996. Decided I would open a small business in
the remote garage doing all kinds of general repair work (woodworking,
welding, small gas engine repair, lawntractors, etc). Secured all
necessary paperwork, variances, sales tax licenses, etc., and since my
original homeowners insurance would not write a small commercial
business, I secured a separate company to write the commercial policy.
Everything fine until a couple of years went by - when I received a
cancellation notice from my home insurance company. "Because I
increased risk to their covered interests". Checked with the PA
insurance commission - Yup, they are allowed to do that (after I paid
premiums to them since 1977). Okay, had to find another insurance
company to cover my house. Done (albeit at a much higher rate).
Then after a couple more years, the commercial policy writer says we
are no longer going to write "small business" so you are cancelled.
Checked with home insurance company - they don't write commercial.
Looked around - found another company to write small business (again
at a much higher rate). A week or so ago, send in annual premium for
the commercial policy - last night got a call from them - "We will no
longer write a policy for less than $xxx annual premium" . The $xxx
annual premium is about $50 more than the already considerably higher
premium I had been paying for the commercial coverage. I broke - said
send back my check , cancel my policy, I'm going to close the business
as I don't work for the insurance company and ain't gonna spend every
evening and all weekends working to pay an insurance premium.
Anyone out there have any suggestions? BTW - I just morally can't
gouge my customers to pay an insurance premium. There is a repair
shop not too far from where I'm located that has a big sign ----" We
charge $90/hour to work on your mower. We charge $30 for an estimate"
Ken (depressed).

Yeah, sounds like me! I have a very small manufacturing business, making
electronic gear on contract, mostly. I have a lathe, mill, soldering
iron,
and a bunch of electronic test gear. I have a house valued at about
$200K,
and I pay about $950 a year for insurance for that. The last insurance
quote I could even obtain a few years ago wanted over $950 to insure
$30,000
worth of business gear! That's a rate 6.7 TIMES higher! Why? Because
criminals burn their businesses with abandon whenever they get in
trouble?
Because I'm being lumped in with the financial criminals of Enron, etc.?
Do people with home shops REALLY pose such a high loss rate to the
insurers?
I have serious doubts about it!

The insurance companies have gouged the doctors so bad they are going to
self-insurance, by creating their own insurance pools. Maybe us small
businesses and home businesses should do the same.

The insurance companies will probably lobby the state legislatures to
outlaw self insurance, of course!

Jon

Thing is, I wonder what you guys are doing in your little shops when
you perhaps weld up and turn down a shaft or something for someone,
and charge them $15-$20 for the job. You are running a business out
of your house (shop) and if that guy comes to pick up his shaft, and
slips/trips and get hurt (or just says that he did) you need to have
the insurance to cover your entire property/house and everything. If
he takes the shaft home, installs it in his application, and it
fractures and explodes - again you need the insurance as he will come
back saying he lost an eye or something.
The insurance I carried was for the slips/falls etc., plus the
liability of working on the equipment, plus the coverage for
customers' equipment while on my property (fire, theft, etc.). How are
you guys handling this problem - or are you just taking your chances
for a few cash bucks on the side? I went to the trouble of setting
the business up properly, sales tax license, insurances, etc and
everything is above board and accounted for but I'm getting beat up
(although I did get a good many new tools and stuff during the course
of this business which were a write off (some depreciated over a few
years and some a one time write-off)). Maybe no one out there really
wants to say that they just take the cash and hope nothing happens,
but I really wonder what the odds are nowadays with the sue-sue
attitude. I mean if you are stupid enough to spill hot coffee in your
lap because you are holding the cup between your legs, why do the
insurance lawyers simply offer to settle instead of busting their
butts a little bit and fighting it in court? I'm a little ****ed -
I'm sorry for the rant.....
Ken.