Bonnie Jay Posted May 16, 2004 Report Share Posted May 16, 2004 I am going to have a long arm quilting business in my home and wondered about others who do if they carry extra insurance of any kind to protect themselves and the quilts of others that they have. Also do you have an accountant to take care of your finances or do you do it yourself with a computer program???? Link to comment Share on other sites More sharing options...
JudyL Posted May 16, 2004 Report Share Posted May 16, 2004 Bonnie: Welcome to the group. Do you have your machine yet? If so, how long have you had it and at what point are you in getting your business going? As far as insurance, I've had a business rider through Safeco and I was paying about $80/year for it. Our homeowner's policy through Safeco just almost tripled (went from $700/year to $1,900) and we had no claims . . just a rate increase. We've checked with other companies and so far, haven't found one that offers reasonable rates along with any kind of business endorsement for the home. I have few customers who come to my home and if I don't find affordable business insurance, I'll have ZERO customers coming to my house. I can arrange to meet them somewhere else but I will not have anyone coming here if I don't have business insurance. I have plenty of contents coverage so I am ok as far as covering property damage if I have a loss but I am careful to limit the number of quilts I have here at any given time. We have a CPA and I had her go over all the business details with me when I first started. Now I use QuickBooks Pro but I'm testing new software designed specifically for longarmers. It should be available to everyone in a couple of months. If you have any questions, hopefully someone here can answer your questions. Link to comment Share on other sites More sharing options...
Guest Linda S Posted May 16, 2004 Report Share Posted May 16, 2004 I contacted my State Farm agent to ask about business insurance. He said it would be much cheaper for me, since the business is in my home, rather than if I had the business in another location. He called me back with a quote of $330/year which would cover the machine, supplies, and other's quilts. I told him I didn't anticipate meeting too many customers here -- most likely at a local quilt shop. It's less than my homeowner's insurance, which is about $480/year, but I live in a small cottage. I plan to get the insurance, especially to protect my Liberty, which I just ordered from (name removed) today! Linda Link to comment Share on other sites More sharing options...
shadywood Posted May 25, 2004 Report Share Posted May 25, 2004 I called my Allstate agent, and he discouraged getting insurance while I have business in my home. Mostly because we have such a high deductible, he said unless we are storing more than 10 quilts at a time, the policy probably wouldn't pay. He did say that if we wanted a Rider on our policy, say for $16,000 to cover some replacement costs, that would add $65 a year. He said the main thing to consider is how much 'equipment' was on site. Link to comment Share on other sites More sharing options...
quiltdiva Posted May 25, 2004 Report Share Posted May 25, 2004 Maybe I didn't read that right - discouraged from getting insurance? It's not just the equipment you want to cover, it's the LIABILITY. I would not advise starting or running a business with out a specific business policy. Your average home policy will NOT cover business risks. My insurance is $360/year. There is a small separate rider for "Personal Property of Others", which is what those quilts are. I've insured them for $200 a piece. fwiw, Deb The Quilt Diva Link to comment Share on other sites More sharing options...
sdrogers Posted May 26, 2004 Report Share Posted May 26, 2004 You may want to contact Christine Olson who has just opened a side line to her LA quilting business. Perhaps she can help you. www.Insurancethreads.com Link to comment Share on other sites More sharing options...
Guest Linda S Posted May 26, 2004 Report Share Posted May 26, 2004 I saw that Christine was in the business now. If anyone would understand, I think she would! I'll contact her for a quote too. Linda Link to comment Share on other sites More sharing options...
Merry Posted May 28, 2004 Report Share Posted May 28, 2004 Some residential areas have CCRs in place or city/county regulations forbidding any type of business in your home. Be sure to check this out as failure to comply can result in nasty fines. Usually if there is such a regulation you can get special permission thru the city council or county since you wouldn't be generating traffic or using a sign. However if some grump in the same neighborhood got turned down on operating a home business and opposes you having that privilage then you are up the creek. Mary in CA Link to comment Share on other sites More sharing options...
shadywood Posted June 1, 2004 Report Share Posted June 1, 2004 I guess I should have elaborated and mentioned that because there wouldn't be a regular flow of customers coming to the house, that he was discouraging it. He said that if there were going to be people coming and going on a regular basis every day, then I should get insurance, otherwise home policy would cover it. I think I will go check www.Insurancethreads.com for more info!!! Link to comment Share on other sites More sharing options...
JudyL Posted June 2, 2004 Report Share Posted June 2, 2004 Betty: You need to get your agent to write out and sign what he's telling you. We just switched to Allstate and the agent told me that my machine would be covered if I used it 50% personal/50% business. I told him I wanted it in writing and it came back that if I used it ANY for business, it was NOT covered. As far as a steady flow of customers, I would not have ONE customer come to my house without knowing (having something in writing) that I have coverage. It only takes one person to fall (or claim they fell). If you ever have a claim, what you remember the agent saying and what your policy covers may be two very different things. The written policy will prevail. I just received the new Allstate policy (which has no business coverage) and I know each state has different rules/regulations but here's part of what my policy says: "We do not cover bodily injury to any person on the insured premises because of a business activity or professional service conducted there." Get everything in writing and read your policies! Link to comment Share on other sites More sharing options...
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