I'm looking for some advice from fellow hobby woodworkers who rent their shop space. I've just received a lease for a small room in a refurbished warehouse where I'll be sharing the space with a couple of fellow artists. The lease requires us to have Commercial General Liability insurance up to $1 million, which is a bit confusing. I've had renter's insurance before, but I've never dealt with CGL insurance. One of my shop-mates is worried that since we're using the space for our personal art projects, we'll be forced into commercial-level coverage. I believe it's possible to get a policy that suits our needs without being considered a commercial business, as we don't have customers regularly visiting or selling art. Has anyone else navigated this? We definitely want to be covered in case of accidents or disasters, but I doubt we'd be treated like a major business. Any insights?
2 Answers
Most importantly, they want you to have liability insurance to protect the property owner from damages. The liability aspect of the lease isn’t the costly part; it's how you want to cover your tools and workspace. I’ve had experiences where a neighboring unit had a fire, and even though my side was untouched, the smoke and water damage ruined some of my gear. So trust me, having insurance is a smart move!
You're on the right track! Getting the right insurance can be straightforward. Just reach out to an insurance broker or shop for quotes online. Let them know your revenue is under $1,000 a year and that you create small crafts. The fact that it’s just you and your buddy in there is helpful, since you won’t need to cover employees. Just be clear that you won’t have customers visiting the space; that can help keep your premiums lower. You might be looking at around $500 a year for a basic policy, which is pretty common for small commercial leases. It’ll only take about ten minutes to fill out a survey to get a quote, so don’t hesitate to shop around if the first one seems steep!
That's definitely affordable! I figured it would be much higher.