Insuring your Torchmate

[mmoran]

Hi all, not sure this exactly fits in this forum but here goes.... I just purchased a Torchmate 4x4, AHVC, Plate Marker and PM 65. I have a full time job but I purchased this equipment for a side business (trying to plan for kids college).

I've been trying to find some liability insurance and property insurance to cover a small fabrication business and the equipment. Could any of you guys that are doing this as a side give me some ideas on companies that might provide insurance for this. The big names, State Farm Allstate, etc aren't interested.

Thanks for any help you may offer. FWIW, one of the main reasons I bought the Torchmate and Hypertherm were because of the folks in this forum and the support that Jim Colt provides.

Thanks,

Mike

[nulbmanager]

I looked into this too....its going to be pretty expensive to have a straight up business insurance policy for something on the side, home owners insurance is usually the way to go.

[Todd W]

Originally Posted by nulbmanager

I looked into this too....its going to be pretty expensive to have a straight up business insurance policy for something on the side, home owners insurance is usually the way to go.

As long as you are not making parts FOR PROFIT then Home Owners should cover it, as soon as it becomes a business (at least with AAA, and someone I had before) they won't cover it.

[North Shore Fab]

I looked into this two years ago when I started farting around in the corner of my employers shop. It wad under $900 a year to insure all my tools and equipment $100 k worth and also had some cool things in tge policy that should stuff be stolen and I have a loss of production I would be compensated. Also had some type of liability policy wrapped up with it. I will be looking into this on the next week or so ad I am now a registered tax paying bid-ness and just want a layer of protection should something happen to my shop

[waynehartwig]

I have my equipment insured through Sentry. Damn good coverage and rates. Not just equipment, but building, inventory, equipment, product liability, etc.

If I ever move the business out of WA, I'll drop L&I and pick up Sentry for my employees too...

[flatblack51]

If your using it for side jobs you can claim it under your home owners insurance. I have state farm and my garage has a 30k policy60k total for the whole house. 280$ a year.

[03ramit1]

I have USAA, and was told that a home baised business is no diffrent than building a rig for personal use. With welding and grinding, I was worried about fire, and that's what I was told, then we talked about equipment replacement, and I already have enough coverage to handle it. We talked about liability, and my blanket policy has 500,000 of coverage, and since I plan on building (race/offroad use only) parts not deemed to carry much risk to anyone other than the end user, my liability is limited, as 99% of my sales will be artsy stuff the worst that could happen is something could fall off a wall, but you could argue that instillation on the wall was out of my control, so falling off a wall is the end users problem.

[MQYJ]

Can't you pretty much add a line item to about any home owner's or business policy to cover specific items of high value for their actual replacement cost? It's an added premium but imo it's worth every penny to know that my machinery that is worth well over $30k is covered in case of theft fire or other loss. My general business coverage only covered equipment to $10k which covers most of the hand tools and small shit that I'd actually need to replace to keep going. Then the big stuf is covered on a seperate schedule with values assigned to each.

[Todd W]

Originally Posted by MQYJ

Can't you pretty much add a line item to about any home owner's or business policy to cover specific items of high value for their actual replacement cost? It's an added premium but imo it's worth every penny to know that my machinery that is worth well over $30k is covered in case of theft fire or other loss. My general business coverage only covered equipment to $10k which covers most of the hand tools and small shit that I'd actually need to replace to keep going. Then the big stuf is covered on a seperate schedule with values assigned to each.

I asked AAA about this, and they said we didn't need to insure anything specifically as long as the coverage $$ amount it was covered under home owners. They have a limit, I forget what but we upped to the limit to make sure everything was covered.

Now that this thread popped up, and we had a reecent claim on an auto I`m going to re-verify it all.

I`ll post what I find.

[MQYJ]

Before I had it all under a business policy, my home owner's policy treated it the same as expensive jewelry or the like.

[mmoran]

waynehartwig a big thanks for mentioning Sentry, I will be contacting them tomorrow.

As for being covered under home owners.......I called my agent (State Farm) been with him for 25 years. He called and spoke to State Farm's under writers and they said home owners will not cover a small business. My building (detached garage) which is covered under home owners will no longer be once I purchase a business license.

From a side jobs standpoint, I would be careful, I asked if my equipment would be insured while I was still at the "hobby" stage. He mentioned that lots of people had a air compressors and welders but not many had a lot of money tied up in cnc equipment. He said that might cause some questions to be asked if a claim was made. I'd rather KNOW that I'm covered even if it cost me a little more, besides I need the liability coverage also. I have an umbrella policy, but once again they said won't cover business related claims.

Thanks for all the replies, I appreciate it.

Mike

[waynehartwig]

Originally Posted by mmoran

waynehartwig a big thanks for mentioning Sentry, I will be contacting them tomorrow.

As for being covered under home owners.......I called my agent (State Farm) been with him for 25 years. He called and spoke to State Farm's under writers and they said home owners will not cover a small business. My building (detached garage) which is covered under home owners will no longer be once I purchase a business license.

From a side jobs standpoint, I would be careful, I asked if my equipment would be insured while I was still at the "hobby" stage. He mentioned that lots of people had a air compressors and welders but not many had a lot of money tied up in cnc equipment. He said that might cause some questions to be asked if a claim was made. I'd rather KNOW that I'm covered even if it cost me a little more, besides I need the liability coverage also. I have an umbrella policy, but once again they said won't cover business related claims.

Thanks for all the replies, I appreciate it.

Mike

I'd have to look at my policy, but I believe I have a $3mil umbrella policy and it costs me about $1300 a year. And like I said, it covers everything against fire, theft, etc. Say the power on the whole block goes out and I can't work. They will cover my employee wages and my losses during the time. Or say I hire someone just to run my CNC table, and a motor goes out. They'll pay his salary and fix the table. I also don't have to keep them informed on inventory levels or machinery, even though it's all protected, which I found really nice.

My 'agent' is an employee, not on comission. He's also local and only a phone call away if I need anything. Sentry seems like a big company, but they are always easy to talk to and get a hold of.

Anyway, let us know how it goes!

[flatblack51]

Originally Posted by waynehartwig

I'd have to look at my policy, but I believe I have a $3mil umbrella policy and it costs me about $1300 a year. And like I said, it covers everything against fire, theft, etc. Say the power on the whole block goes out and I can't work. They will cover my employee wages and my losses during the time. Or say I hire someone just to run my CNC table, and a motor goes out. They'll pay his salary and fix the table. I also don't have to keep them informed on inventory levels or machinery, even though it's all protected, which I found really nice.

My 'agent' is an employee, not on comission. He's also local and only a phone call away if I need anything. Sentry seems like a big company, but they are always easy to talk to and get a hold of.

Anyway, let us know how it goes!

thats real goood to know. i'm in the hobby stages but once I figure out how to use my machine with out alot of effort and I can have product that is worth selling i'll call sentry as well. thanks wayne

[nulbmanager]

Again that is good to know...my insurance guy said it would be covered...Good nothings happened!