There are some homeowner's policies that will cover your business.
But many who cover your business will only cover your business at home. When you do a show you are in essence opening up a separate storefront. And most homeowner's policies won't cover a storefront that's not on your property. So make sure you know what is covered and what is not.
I've been with RLI for over a decade now. How good are their claims procedures? I don't know. I never needed to file a claim.
Homeowners insurance policies can be tricky when it comes to covering business at homes. More often than not they say they will cover a busines for liability etc. BUT their definition of a business is usually different from what we do as artisans. HO polices usually are OK with service based home businesses, like a home office or providing other services from home.
When it comes to manufacturing and selling products most companies will not cover that. If your agent says it does, make sure they understand what kind of business you will be doing. And it is always important to not trust what they say...GET IT IN WRITING! Ask to see the full policy with riders, endorsements and exclusions.
Take care of yourself out there and make sure to cover your assets!
Hi Gus!
Welcome to Art Fair insiders! I too am looking into this. RLI offers a free quote- I just did mine-online- today and expect to hear from them in the next 24 hrs. I do own my home, and am also looking into my homeowners insurance- sometimes a rider on homeowners can be a better deal. But the key is RESEARCH. A lot of shows require insurance up to a million- that's pretty standard for the higher end fairs and festivals. So just do some research- Michelle's advise was pretty good, too!
Yes you need insurance. IF you don't think you do, visit CERF's website and see all the things that happened to artists who didn't have insurance (CERF helps those who don't have insurance and disaster strikes). Generally all you need is a $1 million policy. Many insurance companies offer insurance, State Farm, RLI, etc. - you have to do your own research though because what works for one doesn't apply to all. I just got insurance through Travelers Ins. as they insure candle makers (as I have started making and selling candles wholesale). My policy covers anything from travel to shows (if I have an accident and loose my display and stock - it's covered), while I am at shows, covers me if something were to happen to a customer after the purchase (say their house catches on fire or they are allergic to something and had a severe reaction) as well as covering my workshop in my house over and beyond what my home owners insurance covers (which is mostly the computer stuff, not equipment, shelving, stock, raw materials and such. That is just the beginning. My policy is for just over $500 for a year - this covers product liability and business insurance. It is higher than others only because I sell and make candles - there's more cause for concern, but also have more things covered too (which is included, not extra).
In other words if you own your own home, would you question if you would need insurance? Maybe if you drove a car, would you not have insurance for that? It just isn't wise to open yourself up for that. Accidents happen - a fire due to faulty equipment wireing, someone with an unsecured canopy damages your booth or your work, or your art injures someone - we are living in a litigious society remember - and you can afford the costs out of pocket then, maybe you don't need insurance. But for me, and countless others, you'd be a fool not to.
I just purchased a policy from RLI Insurance covering Business Personal Property and Liability. My annual premium is $229. I have been doing shows for 4 years without insurance, but this is my entire livelihood, and if I lose all my inventory/display materials, I will be in very big trouble! BPP coverage will at least allow me to recover my actual costs, although I will still have to put in a lot of time replacing my stuff! Liability coverage is required by some shows. I have avoided those shows until now, but this year I am doing (or applying to) a few that require it, so I guess it was time.
Replies
There are some homeowner's policies that will cover your business.
But many who cover your business will only cover your business at home. When you do a show you are in essence opening up a separate storefront. And most homeowner's policies won't cover a storefront that's not on your property. So make sure you know what is covered and what is not.
I've been with RLI for over a decade now. How good are their claims procedures? I don't know. I never needed to file a claim.
Homeowners insurance policies can be tricky when it comes to covering business at homes. More often than not they say they will cover a busines for liability etc. BUT their definition of a business is usually different from what we do as artisans. HO polices usually are OK with service based home businesses, like a home office or providing other services from home.
When it comes to manufacturing and selling products most companies will not cover that. If your agent says it does, make sure they understand what kind of business you will be doing. And it is always important to not trust what they say...GET IT IN WRITING! Ask to see the full policy with riders, endorsements and exclusions.
Take care of yourself out there and make sure to cover your assets!
www.actinspro.com
They just started advertising on this site.
I decided to use RLI- spoke on the phone and got it in writing.
I am covered in my home studio- Liability, equipment, raw materials,inventory, tools, etc
I am covered while traveling to/from a show- inventory, equipment, cash box, injury, liability
I am covered while at the show- liability, injury, inventory, equipment, theft, vandalism,etc
Basically- this covers my business assets and me wherever/whenever.
For under $300.00 a year- heck yes!
Karole
Welcome to Art Fair insiders! I too am looking into this. RLI offers a free quote- I just did mine-online- today and expect to hear from them in the next 24 hrs. I do own my home, and am also looking into my homeowners insurance- sometimes a rider on homeowners can be a better deal. But the key is RESEARCH. A lot of shows require insurance up to a million- that's pretty standard for the higher end fairs and festivals. So just do some research- Michelle's advise was pretty good, too!
In other words if you own your own home, would you question if you would need insurance? Maybe if you drove a car, would you not have insurance for that? It just isn't wise to open yourself up for that. Accidents happen - a fire due to faulty equipment wireing, someone with an unsecured canopy damages your booth or your work, or your art injures someone - we are living in a litigious society remember - and you can afford the costs out of pocket then, maybe you don't need insurance. But for me, and countless others, you'd be a fool not to.
Michelle
www.bythebaybotanicals.com
www.quickcraftartisttips.com