Liability Insurance 101 Frequently Asked Questions, Prepared and Answered by the Fournier Group

Question: Why would I possibly need this insurance?

Answer: You currently have no liability insurance protection for your business pursuits in beadmaking. For example, let’s say you’re displaying your work at a trade show and somebody knocks over your display causing your work to spill over the floor.  A passerby trips and falls as a result of the spill.  The injured party sues as a result of “your negligence.”

It is an unfortunate commentary that in today’s society we have become quite litigious.  There is no end to the number of reasons for which an individual might sue you.  Unfortunately, the typical homeowner’s insurance policy excludes coverage for most if not all aspects of your involvement in glass and/or beadmaking.

Question: I feel like the little I make in income does not justify the need for insurance.  Is this true?

Answer: Establishing a “need” for insurance is best accomplished by identifying the needs and goals of an individual. Your “needs” should really be identified by what you can afford to lose. Can you afford to replace all of your tools associated with beadmaking in the event that they are destroyed by fire? What about your finished product that could also be destroyed? Can you afford to defend yourself against a frivolous lawsuit? These are only some of the questions one should ask when establishing their “need” for insurance coverage.

Question: Does this insurance cover me for teaching the craft?

Answer: The short answer to this question is no.  A professional liability policy should be purchased to protect you in your teaching pursuits. Individuals who teach at conferences, trade shows and even farmer’s markets can be held accountable for any and all actions as they relate to your teaching.

Question: If people come to my home workshop is there insurance coverage for this?

Answer: Since individuals would be coming to your home workshop as it relates to your business or trade, a typical home insurance policy would exclude coverage for this. We recommend the purchase of a commercial liability policy or business owner’s policy to cover this area of exposure.

Question: Should I be avoiding this topic since I find discussing it confusing or intimidating?

Answer: Absolutely not. At the Fournier Group, we want to make your insurance buying experience informative and simple. We are happy to answer any questions you might have and encourage them. The Fournier Group is a full service insurance firm. What this means to you is that we provide a wide array of products and services including Property and Casualty, Commercial General Liability, Professional Liability, Group Benefits, Life Insurance, and Corporate and Individual Planning.