Insurance matters

[Kent]

I work mainly out on jobs but changes in orders have led to me to do more at home (see fixtures bench thread etc). Now I obviously have Public liability insurance but was thinking it was just the home workshop that wouldn't be on cover if I was working in there, No the whole darn home insurance would be totally invalid even if my work didn't create the issue a loss assessor will kick it out as non disclosure I am only now aware Only found this out at renewal of my home insurance when I asked to add the workshop for this use! Now then I wonder how many are effected by this. My broker searches 700 suppliers and finds just one Royal Sun Alliance that will insure my home but not the workshop which will be excluded from any claim (the workshop, tools and liability I will be insuring through my trade broker as a combined rather than just public liability insurance as previous).

Longer term I am separating a section of land, putting it into a trust fund and re-building a purpose built bigger place. This involves Solicitors and land registry etc. though so that will be months away.

Been working on this from 9 am yesterday making dozens of calls, even having half an hour with my solicitor. My home insurance has just been renewed 1/2 hr before it is due to expire at noon today.

Be warned and check up because although I knew I should likely be unable to claim for the workshop I was totally unaware of the other implications of invalidating my home insurance for any claim however created.

Just one company out of 700 my broker searches agreed to remove the workshop and charged me an extra £100 for the privilege and it only came in at the eleventh hour. So be warned if your welding at home and check up the real facts. Please be warned your biggest asset could well be at stake one day, its taken me a while to get to the bottom of this one

 

[MattH]

I presume this is an issue if you are running a business rather than hobbyists with "toys"?

 

[dunk]

I presume this is an issue if you are running a business rather than hobbyists with "toys"?

think you need to ask the Q to your insurance company, you know what there like, riddle out of any claim they can, and get it in writting

 

[Kent]

I presume this is an issue if you are running a business rather than hobbyists with "toys"?

what is said about assuming? that's what I did

 

[dunk]

assuming....this catches a lot of people out, "goods in transit" (GIT) insurance is one thats caught a lot of couriers/haulage operators out by assuming or presume, most believe all goods they pick up are covered by this insurance, the fact is very very little is covered when you read the small print,things like electrical,watches, items of value, motorbikes, some pedal bikes, the list goes on, plus apart from stopping for your compulsory breaks or toilet breaks the goods that are covered wont be covered unless your with the vehicle at all other times, one things for sure insurance companies have you over a barrel and know it.

 

[tlovatt]

Insurance contracts have 2 strange attributes, firstly they are exempt from the unfair terms act and secondly they are conducted on the basis of 'utmost good faith' wherby anything that is material to the insurance contract must be disclosed.

This following is offered as my understanding and not something anyone should rely upon in any way, but I am of the understsnding that the main difference between business insurance declarations and consumer (home) declarations is that businesses are expected to know what is material to the contract (i.e. the onus is on the business to declare everything relevant) whereas for home insurance insurance companies should ask a series of releant questions to cover the risks they are interested in. There is a caveat that insurance companies can not ask everything and so if you do something that would effect their evaluation of risk not covered by the questions you must still declare it e.g. if you had a hobby of building and running jet engines in your guarage including the storage of highly flammable fuel this should be declared.

Personally I take the view that welding is a hobby, I do not do it for financial reward, I take reasonable precautions and it is not a major activity that I undertake (probably averages less than a couple of hours a week) and hence I do not believe it material to declare it to my insurance company. If I started doing a lot more welding I probably would.

It is also worth while reading your insurance policy documents to see if they place any restrictions on certain actions.

Businesses also need to exercise care in what contract conditions they work to as this can also invalidate your insurance.

 

[Keith 66]

I had to set up third party liability insurance for a boatbuilding enterprise a few years ago, you would not believe the list of exclusions.
Anything involving "Hotworks" ie welding, blowtorches, grinding etc has to be declared.
Things like GRP laminating that involve inflammable liquids & resins ae also frowned upon.
Also an air compressor that doesnt have a test cert wont be covered if its tank goes pop.
If you are working from home it could become a real problem with your insurance.

 

[dunk]

I had to set up third party liability insurance for a boatbuilding enterprise a few years ago, you would not believe the list of exclusions.
Anything involving "Hotworks" ie welding, blowtorches, grinding etc has to be declared.
Things like GRP laminating that involve inflammable liquids & resins ae also frowned upon.
Also an air compressor that doesnt have a test cert wont be covered if its tank goes pop.
If you are working from home it could become a real problem with your insurance.

i totally agree, and also with hobby`s involving blowtorches, welding, inflammable liquids in bulk,
if you tell them and get it confirmed in writing at least you have a fighting chance if all goes up

 

[hugosb]

Have you tried http://www.simplybusiness.co.uk/insurance/ ? I say this because they give you quotes from quite a few different insurance companies so maybe one of them would be able to cover everything you're after?

 

[Kent]

A mate runs a kitchen company. It's traded for well over a decade turning over 3 - 5 million pa approx
He went to pick up final payment on a job on his way in one morning and found the house burned to the ground from his fitter soldering in a fitting in the under sink cupboard
Be very aware it happens and in our trade it can be a very big claim too great to be shrugged off with a roll of twenty pound notes and an apology if it all goes bad

 

[addjunkie]

Insurance is a mine field, not just for welding in your garage etc, but contents cover too, most only cover for 1500 quids worth of shed/ workshop equipment for theft or damage. And as we know 1500 quid dont go far in tool fetishes. Then there is the conected to the dwelling or detached.

Moving to the sticks, my sister a commercial qualified insurance broker, whod sorted me good cover, in cluding my tools been covered as part of the house contents providing i declared single items over 750 quid, as the garage was attached to the house, advisted me to go speak to nfu about a small holders policy.

Simplistically house and shed earning a few quid are covered seperately, things like lathes, mills, welders are all used to fix old tractors, mowers and such, therefore all covered as is their use in a shed. Only thing not cobvered for theft is the quad. But that is rosd legal so has its own cover. As i am a small holder, its classed as part of my living.

Strange thing all this cover was cheaper than before too!