I’ve been concerned about my personal financial liability if someone got hurt handling or using my wood art.  I spoke to an attorney who suggested an LLC might be “too much” for the very limited about of business I do.  I do have a cargo trailer in which I store my wood art and use to transport things to art shows.     

 

Instead of an LLC, the attorney suggested having good business insurance.   I’d like to hear from others regarding their experience with insurance companies, names of reputable insurance companies, questions I should be asking the insurance companies, and points I should be looking for in a policy.   

 

I'd also like to hear from others regarding the attorney's suggestion of being heavily insured vs. an LLC

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  • I've found an LLC to be a very good and very inexpensive investment.  In Virginia it cost $100 to apply, plus $50 a year.  Try to apply directly with the state, not with some website that is making a profit from your transaction.   A friend went that way and Virginia has no record of her LLC. 

    When I went to get a business bank account, at first they wanted to see my business license.  I don't have one because I don't operate in any particular city (I know, I probably should have one).  Anyway, the bank was perfectly happy with my LLC as proof of my business.  I may have also shown them my federal tax ID paperwork.  Same thing when I recently switched banks.  They accepted my LLC certificate as proof. 

  • I am no insurance expert.  But I can tell you what I have.  Hopefully this will help.  My insurance is with Travelers (through USAA).  I've only had it since last July and no claims.  So I can't tell you how good they are.  My insurance has 2 parts, 1. Businessowners Coverage and 2. Commercial Inland Marine Coverage.  This includes:

    - Personal and Advertising Injury Limit $1,000,000

    - Medical Payments Limit (any one person) $5,000

    The coverage is much more extensive.  For example, it covers my art and equipment while stored at home, in transit to and art fair/exhibit, while at the art fair/exhibit, and in transit back home.  So something like this might work for you.

    Like with any other insurance, the one thing you want to ask is what is not covered.  This list tends to be the long one.

    • I'm also looking for business ins. coverage, A business policy with my homeowner's ins. co. American Family covers my work at home or at the show but not while in transit. Which seems contrary as my natural inclination if bad weather is approaching is to put the work back in my van... What does advertizing Injury limit mean? And Cassius if you don't mind sharing approx. how much is your policy? I checked past blogs and many referenced RLI, but when I looked at their website (I googled them) I didn't see any mention of a policy for art and craft fairs. Anyone have a web address or phone # I'm in Wisconsin if that makes a diffference.

       

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