Business Insurance - costs

[Jonathan]

As some of you may recall, I joined this forum before Christmas and have made a few posts, mostly about starting up. I'm about to collect some second hand equipment that needs a bit of attention, so lots to do.

I'm used to being self-employed and running my own business. I've always made sure I have the correct insurance, as legally required and also to protect myself and customers. So taking this view of my new framing business I've recently set out to find some cover.

But all normal business insurance does not cover "process" claims. That is something the framer may do in the process of farming that is not an accident, but damages the customer's artwork.

In fact the only cover I can find is designed for galleries/framers and recommended by The Fine Arts Trade Guild. Even modest cover for my home framing business will cost well over £600 per year. Well over what I paid as a designer for Personal Indemnity cover in case I ended up with a warehouse full of printed paper no one wanted.

What do any of you do?

[yorkframing]

Most brokers can offer the correct insurance for picture framers.
Just call a couple of business insurance brokers and explain what you want and should be fine

[Jonathan]

Thanks Yorkframing, I've got a couple looking at it for me, but they don't seem to think work in process is covered as anything I do that creates damage is just bad workmanship. perhaps that's normal and I'll just have to be careful and cross my fingers

[Graysalchemy]

That sounds cheap I pay over a grand for my business insurance.

[Steve N]

Greys wrote
"That sounds cheap I pay over a grand for my business insurance."

Same here, but then it is in my overheads cost

[yorkframing]

Try these people, they can cover just about anything
http://www.towergateinsurance.co.uk

Mine is around £700 and that includes all the usual framing liability stuff, a large wood burning stove and cover for customers to use a 125 year old printing press aswell, see http://www.yorkletterpress.co.uk
They were the only company I found flexible enough to cover all these things

[Graysalchemy]

I use tower gate they do a specific framing policy.

[ChrisG]

NFU can include 'goods in trust' which covers anything to do with customers' artwork whilst it is in your shop. You specify how much cover you want for this but can temporarily increase it (for an increase in premium) should someone leave something really valuable with you.

[Not your average framer]

But all normal business insurance does not cover "process" claims. That is something the framer may do in the process of farming that is not an accident, but damages the customer's artwork.

I take it that this means insurance companies do not cover incompetance, failure to follow normal professional practice, or individuals taking on work which they lack the proper training, or knowledge to adequately ensure the required outcome.

In such a situation, I cannot see any reason why any insurance company should be expected to offer any cover whatsoever for what amounts to a lack of responsible behaviour on the part of the insured individual.

Surely this demonstrates the need to always adhere to recognised good practice and never to carry out any proceedures on a customers property, which cannot be fully reversed without trace, unless the customers has been fully advised of all potential risks, on going consequences and have signed an authorisation to proceed with the work. (i.e. adequate contractual cover and illimination of liability for identified risks (beyond reasonable control), or non reversible proceedures, being carried out)

[Jonathan]

Thank you all for your thoughts and comments, they really are most interesting.

Not Your Average Framer – Keith, I'm sure you are right, but to explain the sentence you quoted and my reason for the original post, I should say:

When thinking about insurance for my new business, as well as normal business insurance I knew I needed something relevant to what I was hoping to do – framing. I contacted The Fine Arts Trade Guild and their broker, they felt they included more than I needed (more aimed a framer with a gallery type shop) but said they were possibly the only insurance to cover work in “process” i.e. damaged whilst being worked on. This I found to be true, all other brokers laughed at the idea of insuring incompetence, and who’s to say what condition the work was in before?

I’ve worked in a lot of design and printing businesses that handle original artwork and have seen some very odd things happen. Mostly through staff errors, but then all accidents are someone’s fault! But it made me see the relevance of proper cover. Hence my post to this group, I’m not sure I’m really any clearer about what to do, or what I should cover.

I have quotes from £230 to £623!

[Jamesnkr]

Incompetence? accidents anyway. You wouldn't take your car to a garage that didn't have insurance against something may happening to your car whilst in their hands would you?

[kevin]

I pay €1200 for public liability and loss or damage to any single item up to max of €1000. If a customer values an item at more than €1000 I get him or her to select the frame etc! And then arrange a day to do the work' so I can get it in and out on same day. This does not happen very often. My insurers seem to be more concerned about the dangers of the compressor than the damage or loss of the artwork

[pramsay13]

I am a garage framer and eventually chose Direct Line business. I phoned and explained everything I did and needed covered and they were the cheapest. I also tried NFU but they didn't seem to get what I did.
I have Goods in Trust covered up to an individual limit so if I get something really valuable I will will either have to turn it down or get extra short term insurance.