Insurance advice for a new business!

[invernessframer]

Hello,

I am currently setting up a framing workshop in Inverness, should hopefully be up and running in a couple of weeks. I'm looking for advice about insurance! What do you all have, what's essential, how much should it cost etc? Just not sure where to start with it all
Thank you!

[prospero]

Some insurance firms offer 'shop policies' which are specifically designed for small businesses. Some don't want
to handle commercial policies - fair enough.

Contact a few and they might send round a rep and with luck you get a helpful one.

You basically need cover for all your equipment and raw materials. If you own the premises then you can incorporate
buildings insurance. You also (and this is more important IMO) cover for 'Goods Held In Trust'. i.e. customers things you
have on the premises that you are working on. You have to work out a base figure for this depending on what scale of
operation you run. I you have particularly valuable work in for a short time, you should be able to ring the company to
bunk-up the cover for a short period. Obviously the value of what you hold in trust is going to vary, but you can't realistically
keep tweaking the policy ever time some thing goes out/comes in.

Public Liability in case you get sued by some twit who trips over you doormat. This is usually quite cheap, but the rep will
advise you you of any potential hazards. (New doormat? ) I've got £2 million PL cover.

There are other little 'perks' that can be handy. Cover for Goods in Transit, etc.


They may insist on a few improvements - news locks, fire extinguishers and a few things you never considered.


Cost? Again, depends on the scale of the operation.

[poliopete]

Excellent and pragmatic advice from Prospero

Since the start of my business (early '70s) I insured everything through a local broker. When I took early retirement and self-built our last property I continued insuring with him, house and contents etc. In all those years I never had a problem, mind you. I never had a claim.

Recently, I was persuaded to go to one of those comparison websites to see if any money could be saved. Found a policy sold through a well known national grocer who I shopped with online weekly and used their credit card when extra cover was required. As I had only ever had small problems with this supermarket and they had always put things right, I decided buy a policy through them.

When the deal was done, not only had I saved £100 (happy days) I also got a eating out "meal deal" and a great cinema offer I was able to pass on to number two daughter and her small family. They were delighted.

Long story short. A few weeks ago I got home late and very tired from visiting my wife in hospital. Entering the house through the pouch door a strong gust of wind wrenched the door from me and slammed back with such a force the bottom hinge tore from the UVPC. Living on the Wash and on the edge of the North Sea, we are very used to strong and sudden winds.

I immediately got a quote from the original installer to learn a new door (arm and a leg) was required. I then informed the new insurer thinking there would be no problem only to receive a reply from them stating that after checking with the Met' office no strong winds were recorded that day and therefore it was accidental damage and I was not covered

A few lessons there somewhere that I need to learn.

Peter.

[Justintime]

Having joined the FATG earlier in the year and been unhappy with the service provided by my local NFU agent, I opted for Besso Insurance (recommended by FATG, with a discount..apparently...)
Besso provides a specialist cover for framers/art dealers etc.
As well as the usual buildings insurance, public liability, materials, machinery it also gives me "process cover" against accidental cover to customers work. I have had a few delicate canvases in lately which are apparently worth more than my annual salary, so
NFU was around £600pa, Besso has worked out at around £900pa, which makes me gulp every time I think about it, but I do sleep better at night now.

[whitbyframer]

I'm currently with Direct Line cost me less than £300, compared to the £400+ figure that I had in the first year.

[Justintime]

I'm currently with Direct Line cost me less than £300, compared to the £400+ figure that I had in the first year.

What do you get for that??

[prospero]

Very hard to make comparisons as a lot of factors involved. Not the least where you are located.
Insurance companies have to impose big premiums for known high-crime areas.

Just FYI, I have about 20k of cover for 'Goods Held in Trust'. Probably far too much nowadays, but I have had items in that
where valued at many times that. Some establishments carry millions on the premises at any time.

[whitbyframer]

Can't remember the exact amount of cover but all of my equipment and stock is covered Justin. I do work in a very low crime area so that will also affect the premium.

[invernessframer]

Thank you so much for the replies, this has been so helpful! Good to know what kind of numbers we're talking about and also what to look out for, there's a small insurance broker in the town we're staying in at the moment so I'll go in and have a chat with them. Thanks again for taking the time to reply!