What insurance coverage helps protect an individual from being liable for someone being injured using something you’ve made?
Don’t sell things you’ve made without a legally established business and liability insurance that specifically covers the things you make. Don’t lie about what you make because the coverage is cheaper. Insurance is for you and your customer.
Most US based builders get their insurance from the former ISU Westlake, now Stephen B. Marvin insurance agency in CA.
If you’re a hobby/low volume builder expect to pay around $2000 a year. Price goes up with more revenue/volume but it’s very reasonable.
In Australia we have public Liability and product liability insurance. I’m insured for $20m for both. Costs me about Aus$900 per year.
I just found a local business insurance broker and they connected me with CSU Producer Resources Inc.
I pay about 800$ for 2m coverage.
Wow, that’s awesome! I’ll have to give that a shot…was it a specific brokerage or just an independent person?
Its through Marsh & McLennan Agency LLC
My contact there is Amanda.Gearheart@marshmma.com
Wow that’s a great price.
I pay damn near $5000/y CAD for my Canada + USA insurance and it was damn near impossible to find a broker. I think at this point all Canadian builders are going through the same guy.
Chris of Full Moon bikes just told me about a much cheaper policy than what I have (same place as Walt but mine was over 3k this year!).
In Washington state.
I am with intact in Canada and it cost me around 2000$ a year for canadian market only.
Thanks @Swood . That’s way more reasonable than ISU Westlake/Stephen B. Marvin.
I was going to message you personally about this to see what you do… the $$ is a scary thing. I have Jokingly thought of paying a certain gang for " insurance"
Hahaha yeah going black market might be better.
If you’re just doing Canadian sales it’s more reasonable, adding the states more then doubled it.
I chatted with one of the folks at ISU Westlake/SB Marvin today (1/27) hoping to get set up with a policy in time to present at the Made show this summer, but the word was that I was too low-volume of a builder and that they no longer had the +/- $2k policy they used to for builders like myself. Their quote was starting at $7k and going up from there. They suggested checking back later in the year.
Thanks @Swood for sharing what you found! Hopefully Marsh Mclennan comes through.
I believe I’ll be missing out on the Made show, but that’s how procrastination works - you snooze you lose
I just went down this rout. ISU Westlake will not even provide a quote unless you are over 40-50k in gross receipts. I am trying to build 5 frames a year as a part time business and have been totally unable to find insurance.
This has totally stopped my plans as I have no intention of becoming a full time builder.
I registered as a limited liability company to try and give myself some protection in the event someone decides to take me to court. I haven’t made any frames commercially yet but I do the odd repair/machining/welding job here and there. If I made enough money to justify it I would get liability insurance too but for now I would be spending more on insurance and I make easily.
I think for frame building I will probably make a waiver and explain to any potential customers in future that due to the small volume of customers I have that liability insurance would add a massive amount to the price of their frame hence the waiver. If they don’t like it then they can go somewhere else, because there’s no point in making money just to give it to the insurance company.
A waiver won’t help you, liability insurance will also help with legal fees required to protect yourself and your company. Even if a customer signs a waiver then dies you, you still need to lawyer up to defend against the lawsuit. The amount you make is irrelevant, if you take money for something and it hurts someone or is perceived to have hurt someone to you can be sued. If you lose you will lose big.
You are probably right. At this point it time I don’t make anything for money that involves any risk so prettymuch moot. Last thing I made for money was some brackets for a wall mounted bar leaner. Also worth noting is the legal system here is a bit different/a lot less sueing happens than appears to happen in USA.
FYI I just got a quote through Amanda who @Swood linked to. They got me a policy through Berkley Aspire. Total is ~$1800/yr for $2mm in general liability for $40k est yearly revenue and $30k in property insurance.