insurance for small job shop

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I am working on starting my own business and I have run into a bit of a problem with insurance. To get insured for everything that I have been doing and some stuff that I want to do it is going to cost like 4,000 a year. This is what I have been doing:   boat and trailer repair   fabricated components for boats (ie) floors, radar arches, wake-board towers, anchor mounts   misc fabricated items, or project's people are building that they want welded upI am hoping that someone can give me some guidance on what type of insurance I should have. Please feel free to ask questions if you need more info.
Reply:Originally Posted by gateheadI am working on starting my own business and I have run into a bit of a problem with insurance. To get insured for everything that I have been doing and some stuff that I want to do it is going to cost like 4,000 a year. This is what I have been doing:   boat and trailer repair   fabricated components for boats (ie) floors, radar arches, wake-board towers, anchor mounts   misc fabricated items, or project's people are building that they want welded upI am hoping that someone can give me some guidance on what type of insurance I should have. Please feel free to ask questions if you need more info.
Reply:There are certain key words that often will hike rates. From what I understand "trailers" and "fabrication" are some of them. "fabrication" often causes the insurance company to think you are doing design as well as assembly, hence the greater liability.I know in my general contracting my broker told me never to tell my insurer I use "scaffolding" even if it's only 1 section. That will hike my rate where as I can be up on a 32' ladder with no problems as far as they are concerned. They make no distinction between being 3-6' off the ground on one buck of scaffold vs being 40-60' up on  industrial scaffolding. "Painting" is another no no for me...If you have a broker vs dealing with a company direct, a good broker can help you navigate many of these pitfalls and help you get the coverage you need, without having to be covered unknowingly for stuff you will never do just because you used the wrong descriptive term.Also be sure to look into an inland marine rider along with your general liability insurance. This covers your tools and equipment against theft or loss. It would suck to have a critical piece of equipment destroyed or stolen like several guys here have had happen and then loose your jobs because you can't immediately afford to replace it to do the work. Too many guys find out too late other forms of insurance like vehicle insurance, won't cover tools. My $15K inland marine only adds something like $150 a year to my policy. I probably should carry a lot more coverage, but my thoughts are right now if someone steals my truck, that's enough money to cover basic tools to at least keep me working and money coming in..No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth! Ronald Reagan
Reply:DSW, You'll probably pay half as much more for double the coverage on your inland marine. worth it if you ask me. Gate,find a good broker. they are indispensible. the good ones will not only find you the best rates for what you need, but will know how to deal with claims and all that quickly. I don't do P&C otherwise I'd be more help, but a good broker will have multiple companies to work with and shop. they might not have all your coverages in the same place either. but you'd only have one place to go to for questions.talk to three of four different brokers from different companies. they will either show you all the same stuff, or they'll show you completely different stuff. because they've got lines that the other people don't.And don't be affraid to talk to both small shop single person brokers, and large brokerage firms. both of them can give you either great service or horible service. but pay more attention to the broker than the final premium amount. cause it's the broker that is going to be your best line of both offense and defence with the insurance companies themselves.There are no problems. There are only solutions. It's your duty to determine the right one.Hobart Handler 210Airco 225 Amp MSM Stinger
Reply:I guess my question is more about the classification of my insurance. The broker I have been talking with does not seem to sure about where the work I do will fit in.I am trying to avoid having high priced insurance that is not necessary.
Reply:Originally Posted by gateheadI guess my question is more about the classification of my insurance. The broker I have been talking with does not seem to sure about where the work I do will fit in.I am trying to avoid having high priced insurance that is not necessary.
Reply:Call a Farmers Insurance agency, they have a Fabricated metal products insurance, Mine is outrageous cause i do everything from structural steel to power piping, it just is what it is. Farmers was the only one i found that was worth dealing with, i was told oh yeah we can handle that until they finally figured out what it was they were quoting then they all backed off, its a niche, but u will find it, dont be affraid to tell them what you actually do, the problem is if you do something that your not covered under your in trouble, i can't do burglar bars, but whatever i can build a building and work on gas lines no problem, doesn't make sense but it is what it is.I forgot how to change this.
Reply:I agree with Lawson, make sure you tell them what you are doing. Don't lie to save some money up front. Because if you worked on a trailer, and it fails and causes harm or death to somebody, you're going to wish you have insurance to cover you..  4g's isn't bad a year, I wish my insurance was that much a year, I pay a small ransom.  Owning a buisness, I never knew one needed so many, and so much different insurances.. One needs insurance, for the insurance.. lol   Good luck with the buisness.
Reply:That's great advice about the broker, DSW and ThorsHammer. Thanks for posting it up.
Reply:I have told him everything that I am doing, and the stuff that I want to be able to do, but I think that is part of the problem. It is such a huge spectrum it is hard to clasify.I will try farmers and see what happens.
Reply:you need to talk to multiple brokers, Just like you would talk to multiple contractors if you were going to pay someone else to do work for you. You don't always go with the lowest bid if the quality of services is there from a different source.Customer loyalty is fine and dandy, but how do you know you're getting the best service if you're not looking around. A good broker will actually incourage you to do this. and here's why. If you find something that is cheaper, they might not have known about it and can add it to their book of options. and two you will get the oppertunity to prove to yourself that either they are the best option as far as service goes, or you will find a better fit. Either way it's best for the customer.not to mention you first loyalty should be to yourself. not to someone who is out to make a profit off of you. Don't get me wrong, A broker is your best friend when it comes to insurance. but don't think for a second that they aren't doing it to make a profit. Dirty brokers will push the products that get them the biggest commision. so Shop around.There are no problems. There are only solutions. It's your duty to determine the right one.Hobart Handler 210Airco 225 Amp MSM Stinger