My spouse is starting a woodworking shop at home and wants to invite neighbors to join in on the fun. I'm worried about what happens if someone gets hurt while they're there. We currently have an umbrella policy, but I'm wondering if we should be looking into additional coverage or insurance options to make sure we're protected.
3 Answers
Umbrella policies generally require you to have your other insurances in place first—like auto and home. They offer coverage for things like injuries to guests. You might want to check with an attorney about safety measures like signs that warn people they use tools at their own risk, but I’m not sure if there's insurance that goes above an umbrella for non-business activities.
It's a good idea to chat with your insurance company about your situation. They'll help you understand what your current umbrella policy covers and if you need more protection. Just keep in mind that they might suggest additional insurance options that come with a cost. It's worth considering your risks based on how many people will be using the shop.
For the most unbiased advice, talking to an attorney might be better. They can give you real guidance on how to protect yourself and advise on liability beyond just insurance.
You could consider having people sign a waiver before they use any tools in your shop to excuse yourself from liability. But keep in mind, this doesn't completely protect you since people can still sue in case they get injured.
That's true; waivers don't eliminate liability. They do help make it clear that users understand the risks, but if someone gets hurt, they can still take legal action.
I think what you're really asking is if you should bump up your umbrella policy. It's worth evaluating if the coverage could be increased due to the risks involved!