Members Lurker Posted January 19, 2011 Members Report Posted January 19, 2011 A few questions for those of you who own leatherworking businesses if you don't mind... Do you have product liability insurance? Do you think it is a necessity? What kind of leather work do you do? Where do you live (what country?) If you have product liability insurance, what is the approximate cost of it and what kind of protection do you get? I am in the beginning of starting a business doing custom leather work and tack repair. I won't be doing any work on saddles, but will be doing bridles/breastplates/girths and many other items to be used for horseback riding. I know my tack and I am VERY safety conscious with everything I do, but I know that once the tack leaves the shop it may be abused/misused or not taken care of and could be damaged. I don't think I need to point out that most people are "sue-happy" nowadays... Been looking into product liability insurance online but most of what I've read is not written with the small company/sole proprietary in mind. I know when I get in a room with an insurance salesperson they'll have the upper edge on me and I want to know as much as possible beforehand. Quote
Contributing Member Ferg Posted January 20, 2011 Contributing Member Report Posted January 20, 2011 A few questions for those of you who own leatherworking businesses if you don't mind... Do you have product liability insurance? Do you think it is a necessity? What kind of leather work do you do? Where do you live (what country?) If you have product liability insurance, what is the approximate cost of it and what kind of protection do you get? I am in the beginning of starting a business doing custom leather work and tack repair. I won't be doing any work on saddles, but will be doing bridles/breastplates/girths and many other items to be used for horseback riding. I know my tack and I am VERY safety conscious with everything I do, but I know that once the tack leaves the shop it may be abused/misused or not taken care of and could be damaged. I don't think I need to point out that most people are "sue-happy" nowadays... Been looking into product liability insurance online but most of what I've read is not written with the small company/sole proprietary in mind. I know when I get in a room with an insurance salesperson they'll have the upper edge on me and I want to know as much as possible beforehand. We have a little different scenario than you would have. Our home based business (now) has been in business for over 30 years. We do children's products. Our liability insurance is $2,000,000, yes you read that correctly. It costs us $1500 per year and is roughly based on your gross receipts. We are now a sole proprietor with no employees. We also have had our products tested in a government approved lab for any and all possible contaminants, passed with no defects. Another $800.00. ferg Quote
Members Lurker Posted January 20, 2011 Author Members Report Posted January 20, 2011 We have a little different scenario than you would have. Our home based business (now) has been in business for over 30 years. We do children's products. Our liability insurance is $2,000,000, yes you read that correctly. It costs us $1500 per year and is roughly based on your gross receipts. We are now a sole proprietor with no employees. We also have had our products tested in a government approved lab for any and all possible contaminants, passed with no defects. Another $800.00. ferg Thank you for the reply. I know this might be a subject people don't want to go into detail with on a public forum...but I need to know! I know the insurance person is likely going to have no clue as to what kind of business I'm doing. And I'm the sort that if I'm not prepared I'd be looking at the insurance person with wide eyes and would likely buy anything they suggested just so they'd stop confusing me. I'm not at all surprised on the 2 mil liability insurance. Heck I just upped my 3rd party liability insurance on my truck last year from 2 mil to Idon'tevenknownwhatridiculousnumbernow. I am surprised on the lab testing...talk about being on top of the game there! Impressive. I would hope that none of my customers will be putting their leather goods in their mouths though so I hope I don't have to worry bout that too much. Quote
Contributing Member Ferg Posted January 20, 2011 Contributing Member Report Posted January 20, 2011 Thank you for the reply. I know this might be a subject people don't want to go into detail with on a public forum...but I need to know! I know the insurance person is likely going to have no clue as to what kind of business I'm doing. And I'm the sort that if I'm not prepared I'd be looking at the insurance person with wide eyes and would likely buy anything they suggested just so they'd stop confusing me. I'm not at all surprised on the 2 mil liability insurance. Heck I just upped my 3rd party liability insurance on my truck last year from 2 mil to Idon'tevenknownwhatridiculousnumbernow. I am surprised on the lab testing...talk about being on top of the game there! Impressive. I would hope that none of my customers will be putting their leather goods in their mouths though so I hope I don't have to worry bout that too much. You would be surprised at what "dumb" things folks do. They may not put the leather in their mouths but it will touch their skin at some point in time. Be prepared because they will try anything to get a fast buck. Years ago we made rocking horses until the young couple received a gift Rocking Horse from Grandma. They decided they wanted the money. Went to court. The Judge told them he would be happy to have one for his grandkids. Told us to give them the money. We got the last laugh, he made them pay the court costs. LOL Visit more than one Insurance outfit. If you are not familiar with any of them do your homework and a forum is not the only place to get info. There is a world of information on the World Wide Web, access it. ferg Quote
Members whinewine Posted January 20, 2011 Members Report Posted January 20, 2011 I don't know about home-based or brick & mortar stores, but we carry vendors' insurance for (I think- won't know till I look it up or get the next bill...) $1,000,000. It costs us $350/year. The majority of shows we do require it, and although the possibility of something happening is remote, as Ferg notes, "You would be surprised at what 'dumb' things folks do". It keeps us safe. Quote
Members JoelR Posted January 25, 2011 Members Report Posted January 25, 2011 If you guys don't mind, who are your insureres? I attempted to get liability insurance through my insurrer (USAA - who does our home, car and my wifes Personal Liability Insurance for her RN license) and was told they have nothing that would match my needs and had no recommendations on where to look. Quote By the end of the show you start telling them you keep a few head of steers behind the house and go out and carve off a strip when you need it, it grows back in 5 or 6 weeks. - Art JR
Contributing Member Ferg Posted January 25, 2011 Contributing Member Report Posted January 25, 2011 If you guys don't mind, who are your insureres? I attempted to get liability insurance through my insurrer (USAA - who does our home, car and my wifes Personal Liability Insurance for her RN license) and was told they have nothing that would match my needs and had no recommendations on where to look. You will need a company that writes business/manufacturing insurance. As you found out they don't all want to do that. ferg Quote
Members whinewine Posted January 25, 2011 Members Report Posted January 25, 2011 We have "Vendors of the US", PO Box 24, New Richmond, WI 54017, PH: 715-246-8908. It's for a $2,000,000 policy, underwritten by Lexington Insurance Company. Now this is for the shows we do- I have no idea if this covers brick & morter stores. Hope this helps. russ Quote
Members Lurker Posted January 31, 2011 Author Members Report Posted January 31, 2011 Thank you all muchly for the feedback. Now I guess I gotta get busy and go shop around...*groan.* Quote
Members JoelR Posted February 1, 2011 Members Report Posted February 1, 2011 Thanks. Quote By the end of the show you start telling them you keep a few head of steers behind the house and go out and carve off a strip when you need it, it grows back in 5 or 6 weeks. - Art JR
Members whinewine Posted February 1, 2011 Members Report Posted February 1, 2011 (edited) We have "Vendors of the US", PO Box 24, New Richmond, WI 54017, PH: 715-246-8908. It's for a $2,000,000 policy, underwritten by Lexington Insurance Company. Now this is for the shows we do- I have no idea if this covers brick & mortar stores. Hope this helps. russ Another suggestion is to seek out an independent insurance agent- one who sells insurance from many different companies, rather than just one. (We have all our other insurances through him, & he COULD get us vendor's insurance, but we got the better deal through 'Vendors of the US'.) It's a possibility to check out for whatever your particular needs may be. Edited February 1, 2011 by whinewine Quote
Members Lagarto Posted February 3, 2011 Members Report Posted February 3, 2011 Thanks, whinewine, for sharing the name of your carrier. I was just about to start a thread of this same inquiry, when I thought I would first do a search on the forum for existing threads. So, no one else reading this thread wants to share "who they use"? That surprises me. If you have a good relationship with your insurer, why not share that info so we don't have to a> hunt for one at random b> find a bad one and realize this too late Leatherwork for gun holsters and anything equestrian obviously will scare the pants off the unaccustomed agent, when they talk to their underwriting department and balk at "dangerous products", even if it is only the potential for danger when the leather is in the hands of dumb customers. Not average customers, but the dumbest of the dumb. It will happen, obviously, to someone, that's why we need the coverage. Personally, I attend trade shows and need a policy to protect my machines in my shop, my hides, and my finished unsold goods. I also need insurance to cover my credit card mobile terminal, because my merchant bank is telling me "we will find you a policy if you don't insure it yourself". I don't have a brick/mortar shop, I only sell online and at trade shows. Any feedback from you leathery old leather workers who have been through this already would be MUCH appreciated! Cheers, Lagarto PS: Farmers insurance said "we won't cover a holster maker, no way". I am still looking for an agent. Quote
Contributing Member Ferg Posted February 3, 2011 Contributing Member Report Posted February 3, 2011 Thanks, whinewine, for sharing the name of your carrier. I was just about to start a thread of this same inquiry, when I thought I would first do a search on the forum for existing threads. So, no one else reading this thread wants to share "who they use"? That surprises me. If you have a good relationship with your insurer, why not share that info so we don't have to a> hunt for one at random b> find a bad one and realize this too late Leatherwork for gun holsters and anything equestrian obviously will scare the pants off the unaccustomed agent, when they talk to their underwriting department and balk at "dangerous products", even if it is only the potential for danger when the leather is in the hands of dumb customers. Not average customers, but the dumbest of the dumb. It will happen, obviously, to someone, that's why we need the coverage. Personally, I attend trade shows and need a policy to protect my machines in my shop, my hides, and my finished unsold goods. I also need insurance to cover my credit card mobile terminal, because my merchant bank is telling me "we will find you a policy if you don't insure it yourself". I don't have a brick/mortar shop, I only sell online and at trade shows. Any feedback from you leathery old leather workers who have been through this already would be MUCH appreciated! Cheers, Lagarto PS: Farmers insurance said "we won't cover a holster maker, no way". I am still looking for an agent. It wouldn't do you any good to know my Insurance agency, you are 800+ miles from me. Just kidding. This is very much like getting a company to insure a log home, we live in one. They have no idea how safe a log home is in comparison to a frame house and don't care. You need to contact Insurance company home offices first then get an agent. No one can help you with that. ferg Quote
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