insurance and gunsmithing

[ARShuter]

I have been gunsmithing for over 10 years out of a small room in my basement and my garage. Last July my home owners insurance paid a suprise visit, now they want to cancel my homeowner even thou I have smithing insurance, claiming liability to be the problem. My smithing insurance has a higher liability, 1 mill. and my homeowners is 300,000. They tell me I can't have the business on my property. Are there any smith's here that operate out of thier homes as I do? What do you do? Thanks for any and all help. Alan

[TRB]

Insurance companies have gotten squirrelly since Katrina. It used to be you never saw them. Then they started inspecting small businesses every year or two. Not enough fire extinguishers? Owner gets a threating letter and a follow up visit. Now it seems that they're starting to come after homeowners.



Call your agent. He is already aware of the issue. Find out what he has to say. Then put your policies up for bid. Call a half dozen agents and have them quote it a couple different ways with at least two carriers each. You will then have a good idea of what is available and whether or not you're getting a good deal.

There are enough insurance companies out there and they all want your business. They will do everything in their power to avoid paying a claim when you have a problem. You owe allegiance to none of them.

[Pa. Patriot]

I had the same thing happen to me.

I now have Erie ins co for the house. They are cool w/the GS biz


HTH!

[BUCKMARK]

Up until last year, our gunsmithing shop has always been on the same property as our house. Never had a problem, but we also have ERIE Insurance.

[ARShuter]

Buckmark and Pa. Patriot .....That's funny Erie insurance is where this all started. I've been with them for 15 years since we bought the house. They tell me even thou I have business insurance they don't want the liability with the household. In fact I was told today, "find a new insurance company for the house because as of Friday you'll need it."

TRB....In the past month I've talked to well over 15 companies and none want to hear gun shop or gunsmithing.

[Pa. Patriot]

Buckmark and Pa. Patriot .....That's funny Erie insurance is where this all started. I've been with them for 15 years since we bought the house. .

Wow... When I had it happen I was upfront when shopping and Erie said no problem...

[TRB]

Buckmark and Pa. Patriot .....That's funny Erie insurance is where this all started. I've been with them for 15 years since we bought the house. They tell me even thou I have business insurance they don't want the liability with the household. In fact I was told today, "find a new insurance company for the house because as of Friday you'll need it."

TRB....In the past month I've talked to well over 15 companies and none want to hear gun shop or gunsmithing.

Have you tried any of the larger agencies in Greensburg or Pittsburgh? They will have a lot more experience with underwriting small businesses. They should be able to handle a situation like yours. BTW, your situation is not an unusual one at all.

[CCinPA]

I had the same thing happen to me.

I now have Erie ins co for the house. They are cool w/the GS biz


HTH!

For my business I was with Donegal/Atlantic States for many, many years and they treated me very good and if there was a claim I had no nickel dimming done to me. (claims were usually automotive because they have my entire business package)

Right after 9/11 my price took a huge increase so I shopped it out and I was with Zurich, then Ohio States and then finally Erie and I must admit Erie was great with prices but they had every angle covered to get out of paying in full for a claim. I have to say I would never, ever use Erie for anything as they have too much language in their policies to help the reduce their pay out.

I guess the same old applies, you get what you pay for!

I just do not like the dishonesty of Erie when they take your old policy and tell you we wrote you the same coverage when indeed they didn't do any such thing.

Well this is my experience with Erie and after I experienced this I had discussions with others lamenting the same of similar.

[ARShuter]

TRB, I've tried Erie,Of course, State Farm, All State, Donegal, Several smaller ones, a broker, Tuascano, I have a customer that's an agent for Nation Wide, he's pulling all the strings he can... Hell the NRA just started an insurance program this past January but he never returns calls he gave me a quote on the phone on friday said he would e-mail everything to me monday and I'm still waiting even after 3 phone calls over a 2 day period. I'm sure my situation isn't unusual it's just a pain

Pa. Patriot and Buckmark, Would you fellas PM me your agents names and numbers I'd like to talk with them just for ammo when I deal with my agent. Thanks

[TaePo]

I am getting out my tinfoil hat now...

Could it be that your numbers show you as non-profitable or at-risk for some other reason and this is just an excuse to elliminate your insurance plan?

Maybe some auto claims recently? Or late on payments?

I have had Erie, and though they are expensive compared to some others, I never had a problem or any hoops to jump through with any claims etc. so I have always kept them.

Is it maybe the agent that Reps them?