Thread: Small Business Insurance

Isaac,

Try CGU. I use them for my business.

Try the insurance scheme offered by the VWA which I believe is very competitive.

Peter.

Good Morning Isaac

Have you considered going to insurance brokers, rather than direct to the insurance companies? They know the market which is constantly changing. Most business insurance is done through brokers.

I have been using brokers for 40+ years and they always get me a better deal than I can get from the same companies. eg my current house insurance with QBE is about 20% cheaper than the best deal that I could get direct from QBE.

Cheers

Graeme

Wot Graeme said. Ive even taken to keeping a couple of insurance brokers numbers as they can get lazy and greedy as well.

Hi Isaac,

Out of interest (no experience with business insurance), what sort of things did they want you to comply with as a furniture maker ? Guessing OH&S would be one.......

Cheers,

Sam

Wot Sturdee said.

Originally Posted by Sam

Hi Isaac,

Out of interest (no experience with business insurance), what sort of things did they want you to comply with as a furniture maker ? Guessing OH&S would be one.......

Cheers,

Sam

Hi Sam,

This is the list of compliance requirements on my policy


Every horizontal surface in the workshop to be swept clean each day at finish of work.
Each machine to be serviced by a dust extraction facility
Storage of flammable liquids only in a flammable goods safe
No spraying with flammable solvents except in an industrial approved spray booth
A secure external facility is required to isolate the power supply to the shop
Hard wired smoke detectors required
Networked intruder alarm.
Fire extinguishers as required by the shop size and local fire authority requirements.

Theft insurance is prohibitively expensive. Realistically you have to carry some of the risk and spend the theft insurance premiums on making the place really secure if theft is a potential risk.

Domestic contents insurance offers almost no cover for tools of trade ( around a $1000) and many folk who think they have cover under their household policies for expensive tools and machines are in for a rude shock if they have to make a claim.

In my experience a lot of folk who talk and write knowlegably about workshop insurance don't have it!!

The VWA insurance referenced by other writers to this thread will lead you to a company that will insure you if you are seeking commercial insurance.( commercial insurance is not about whether or not you operate commercially its about the nature of the risk in this instance)If you use the services of a broker they may be able to get the conditions eased a bit plus be even cheaper.

At the end of the day the insurance conditions are pretty sensible from a personal health and workshop safety perspective particularly so if your workshop is part of your domestic living arrangements.

Cheers OP

Originally Posted by old pete

Hi Sam,

This is the list of compliance requirements on my policy


Every horizontal surface in the workshop to be swept clean each day at finish of work.
Each machine to be serviced by a dust extraction facility
Storage of flammable liquids only in a flammable goods safe
No spraying with flammable solvents except in an industrial approved spray booth
A secure external facility is required to isolate the power supply to the shop
Hard wired smoke detectors required
Networked intruder alarm.
Fire extinguishers as required by the shop size and local fire authority requirements.



Cheers OP

Yes conditions similar to these except all scap and waste material was to placed in skip bins outside the building.

The flammable liquid storage is contentious.A friend who is renting an industrial unit has to store all these in an outside locker to comply with the owners insurance requirements but an internal locker to comply with his own insurance.

My workshop is in a rural location so many of the requirements aimed at protecting adjoining buildings and businesses should not apply.

A friend changed insurance agents from Elders to another through a broker and had to pay 60% more for the same cover.

Thanks Old Pete and Isaac,

Very informative. As you say those conditions seem ok.

Sorry to hijack the thread.....What does the product liability cover ? Does the public liability cover you if a chair you made collapses under someone sitting on it and they sue ?

Thanks,

Sam

Originally Posted by Sam

Thanks Old Pete and Isaac,

Very informative. As you say those conditions seem ok.

Sorry to hijack the thread.....What does the product liability cover ? Does the public liability cover you if a chair you made collapses under someone sitting on it and they sue ?

Thanks,

Sam

Product liability would apply in the case of your collapsing chair scenario but its not a simple cause and effect situation. The circumstances apply influence to the decision re liability.

Public liability more, but not exclusively, covers injury or loss to people visiting your premises. If you are really negligent or unprofessional in your operations you may experience a problem with either of these types of insurance.

Its about disclosure. If you are straight with your insurers they will usually respond in like kind. If your'e not then look for trouble if you have to claim.

OP

Good on ya Old Pete, thank you.

Hijack over !