Confused - Insurance Question? Can you help?

[frootbat]

I'm just filling in the form for my business insurance (just public & product liability nothing else)

I'm not trying to be dis-honest but its asking me this,

Are the premises built of brick, stone or concrete and roofed with slate, tile, concrete, metal, asbestos or cement sheeting. Insert YES or NO.

I'm working from a private dwelling - my house! but my main work area is in a shed/workshop which is in our back garden thats built of timber, concrete floor, tiled roof, doubled glazed window and door, its all very secure.

Its a very very part-time business, more of a hobby as I dont have alot of time, but I want to sell what I make so have to go through the correct channels.

The shed isn't purposely built for my business its just extra space where the kids aren't allowed (so I can keep everything out instead of packing away each time), I only have a tiny corner in there, (my husband uses most of the space for his hobbies, storage etc).

Should I mention this is the box for extra information, will it affect my chances of getting insurance? Is it even relevant?

I'm a bit worried as its not brick built but they're not insuring the contents or anything - why is everything so complicated? I'm only after public and product liability insurance actually only product liabilty but they come as a package.

Or should I just answer Yes as my house is brick built with a tiled roof?

What would you do? thanks if you can help.

 

[Alpha]

Unfortunately insurance froms are standard and cannot cover all circumstances therefore often make no sense to an individual circumstance.

It would be best to contact your insurance company/broker for their advice or if you cannot outline the particular circumstances on the proposal form.

It is unlikely that it will affect the insurance that you are trying to take out but it would affect insuring the contents against fire or theft as timber is much less secure and probably more flammable.

 

[APRogers]

Frootbat

I'm ten years out of the commerical insurance game but the knowledge is all still there. Alpha has is exactly right - ask. It's at times like these that brokers earn their commission because they're paid to know the answers.

I did time as both a broker and an underwriter. Unless you know what you're doing, going direct is a potential false economy.

Alan

 

[fastfences]

Hi froot,
Since you don't want the Public Liability and only have limited product, and work very, very part-time, would not your normal 'contents' policy cover those items?
cheers, Nigel

 

[frootbat]

Hi Nigel

No, I don't think so. Our home insurance company (Direct Line) doesn't cover business insurance. I only really want product liability insurance just incase somebody injured themselves on something I made, highly unlikely but I suppose it 'could' happen and a few people have said if somebody did sue me I could loose everything, like our home that thought really worried me.

Must admit all this insurance makes me feel like I'm throwing money down the drain but there you go, better to pay for piece of mind.

 

[frootbat]

Thanks Alan, I think I'll give them a ring tomorrow.

 

[Jayne]

Hi froot,
Since you don't want the Public Liability and only have limited product, and work very, very part-time, would not your normal 'contents' policy cover those items?
cheers, Nigel

No it wouldn't, Insurance companies are sods for this. For example, if you use you car on a domestic insurance and have all your tools pinched for your business, the insurance wouldn't pay out. Same for house hold insurance. If I wasn't having customers to my house, I wouldn't bother really, but make sure you save up enough to replace things stolen if that happens, just in case the insurance people get funny and will not pay out.

Jayne

 

[fastfences]

Yep, you're right. I was looking from a different angle, i.e. the goods static in the shed.

 

[frootbat]

Thanks very much for your help Alpha. You're right I think the best bet would be to ask them directly, I'll give them a ring tomorrow, see what they say.

 

[Jayne]

Hi again,

Try NFU insurance, we use these and they are ok! We've never had any trouble with them and you can pay monthly. We pay £93 commercial insurance (Full Monty) per month, which is good compared to other companies.

Jayne

 

[frootbat]

Hi Jayne

Eeeek, £93 a month!!!!

I was looking for craft insurance with Ian Wallace and its only £66.50 a year but thats just for public/product liability insurance. I only use a few simple hand tools etc so don't need to cover equipment and things like that.

I just want/need the PLI for piece of mind.

 

[Jayne]

Yes it's steep, but don't forget we have a huge public liability to take out, plus building insurance included. We have to have our equipment insured for £65,000, so you see it's cheap for us.

Yours should only be a fraction of this, give them a ring and ask.

Jayne

 

[APRogers]

Since you don't want the Public Liability and only have limited product, and work very, very part-time, would not your normal 'contents' policy cover those items?

The 'No' to that question has already been elloquently put here, but it does require reinforcing - there is no overlap between insurances:

• Your property (business or personal) is not covered in your vehicle - there'll be a mention of £500 cover but lots of get-outs too
• Your home insurance will specifically exclude ALL business activity. You even have to declare if you're teleworking or you'll be in the mire come claim time

Similarly, you can't buy Products Liability without Public Liability Insurance. At our level, you'll be inside minimum premiums for both anyway - anything over £105 (the odd bit going to the government) means you should shop again.

In closing, whilst you may think you don't need the former, if anyone comes to your home/shed, or you visit, you need it - trust me.

Alan

 

[frootbat]

Thanks everyone for your help

I rang the insurance company this morning and they said they'd be no problem, it doesn't matter that I'd be doing some work in the shed. I just need to put all the details down on the form.