Insurance

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Our Policy

Policy PDF

Insurance Agent Contact Info

Erin Atkins
Hanby Ramey King Insurance
Rockwall:
(972) 771-4110
Mesquite: 
(972) 285-0381
www.hrkinsurance.com

Cost of our Policy

$500 for Commercial Property and $1699 for Commercial General Liability

What does the Commercial Property Insurance cover?

  • "will pay for direct physical loss of or damage to covered property at the premises described" (fire, theft, etc)
  • Since we're using the "Cause of Loss - Special Form", "Risks of Direct Physical Loss" are all covered unless the policy specifically states something is excluded.

Propertyinsurance1.jpg Propertyinsurance2.jpg Propertyinsurance3.jpg

Also Included:

  • "Loss or damage that occurs due to looting at the time and place of a riot or civil commotion"
  • "Building damage caused by the breaking in or exiting of burglars"

What does the Commercial Liability Insurance cover?

  • "will pay those sums that the insured becomes legally obligated to pay as damages because of bodily injury or property damage" (trip and fall lawsuits)

Liabililityinsurance1.jpg Liabililityinsurance2.jpg Liabililityinsurance3.jpg Liabililityinsurance4.jpg

Excluded From Our Policy

Liquor Liability Exclusion: 

"Bodily injury" or "property damage" for which any insured may be held liable by reason of:
#Causing or contributing to the intoxication of any person
#The furnishing of alcoholic beverages to a person under the legal drinking age or under the influence of alcohol; or
#Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages.
(It's on page 65 of the insurance policy.)

Other Exclusions:

  • "We will not pay for loss or damage caused by or resulting from theft." (until we get a burglar alarm)
  • Nuclear explosions/waste
  • Malpractice and Professional Services (say we perform computer repair services, our insurance doesn't cover that)
  • Physical-Sexual Abuse
  • Assault and Battery
  • Injuries or damages resulting from Lead
  • Injuries or damages from working on cars, aircraft, or watercraft
  • Loss caused by "earth movement", sink holes, landslides, volcanic eruption, and mines caving in
  • Flood, mudslide, water backup, damage caused by "waterborne material"
  • War
  • "Seizure or destruction of property by order of governmental authority."
  • Loss caused by failure of power
  • "Any loss caused by or resulting from direct physical loss or damage to radio or television antennas (including satellite dished) and their lead-in wiring, masts or towers"
  • Collapse of the building
  • Property Damage - "Does not include vending machines or other property rented to or located for the use of others but not sold."

Acquiring A Policy

Forms

Media:Qualified_New_Business_Opportunity.pdf ‎ (at minimum, you should know the answers to the questions in this form)

What do we do? (mostly stolen from noisebridge)

Some agents asked us for a paragraph describing what we do:

"Dallas Makerspace is a membership organization that offers work space and storage for use by members and their guests to pursue projects related to art and technology. Member projects may include electronics assembly, soldering, small amounts of painting and epoxy, optical imaging (photography/video), electronic music, metalworking, woodworking, and computer programming. Through talks, workshops, and projects people work on together, we encourage knowledge exchange, learning, and mentoring in a safe, clean space."

Questions From Insurance Agents

  • Are you working with any other brokers? (We can't submit an application to the same place they already did.)
    • We are working with a broker who applied to Burns & Wilcox
  • What are your sales from the memberships?
  • What is the premium range you are getting in so far?
    • (This may be the insurance equivalent of an used car salesman asking how much money you have to spend?)
  • What is the value of contents inside the warehouse?
  • Can you send us a copy of your lease?
    • "Tenant shall, at its expense, maintain during the lease term and for four (4) years thereafter, all risk comprehensive public liability insurance, contractual liability insurance and property damage insurance under policies issued by insurers of recognized responsibility, with limits of not less than $300,000 for each personal injury, bodily injury, death or for damage or injury to or destruction of property (including the loss of use thereof) for any one occurrence. Tenant's policies shall name Landlord, its agents, servants and employees as additional insureds and Landlord shall be furnished a copy of each certificate of insurance."
  • Are you 24/7?
    • An agent said we would have trouble getting reasonable theft coverage (commercial property insurance) because we were 24/7
  • Do you have a burglar alarm?
    • Burns and wilcox will not give us theft coverage (commercial property insurance) unless we have a burglar alarm.
    • State farm said they would cover us, but we would receive a discount if we had an alarm.
  • Can someone just walk in and use the tools?
    • Some of the tools yes, but our most dangerous tools like the Cabinet Saw and Laser Cutter require a safety class before using.
  • What was your revenue over the last 12 months?
    • 57k
  • How many members do you have?
    • Around 110
  • How large is the building?
    • 4042sqft

Questions for Agents

  • Can you call the underwriter and verify we are classified correctly?
  • If someone comes into the space and cuts off an arm on the saw, would we be covered for that under general liability?
    • Probably not
    • One agent told us we would need product insurance for that
    • Another agent told us we would need more insurance with medical coverage for that
  • If someone comes into the space and slips/falls, would we be covered for that under general liability?
    • Yes

Classifications

  • https://www.techinsurance.com/quote/NaicsFinder.aspx
  • We are currently classified as Class Code 41668: "Clubs- Civic, service or social- having buildings or premises owned or leased- Not for Profit only"
  • We are not a hobby shop.
    • "That isn’t correct….A “hobby shop” isn’t a makerspace it is a retail store that sells supplies to make hobbies. See definition of hobby shop from Hartford’s class guide: This classification applies to risks engaged in the sale of scale-model kits, craft kits, science kits, craft tools, art tools, and finishing materials. Publications related to these items are also sold. Baseball card shops are not eligible. Risks that sell toys and games with incidental sales of hobby & models are classed as 59511 - Toy Store."
  • "I’m going to class this as a Non-Profit Art Organization." -Brower Insurance Agency, LLC
  • We need to stress that we do not sell anything.
  • We do not fit into industrial or manufacturing, since we do not sell things and are run by volunteers

Facts

  • Number of members is a big factor in how much the insurance costs
  • If a member steals something, that is not covered by insurance
  • http://sfcard.org/GoodSamaritanLaws.pdf
    • A volunteer who is serving as an officer, director or trustee of a charitable organization is immune from civil liability for an act or omission resulting in death, injury or damage if the volunteer was acting within the scope of duty.
  • General Liability includes:
    • Premises Insurance - covers an insured for bodily injury or property damage liability to members of the public while they are on his premises

Resources

Getting Quotes

I got several calls immediately after I filled out the form on this website: http://www.netquote.com/

General Liability & Property Insurance Quotes

Directors & Officers Insurance Quotes

Declined

The following companies have declined to provide a quote:

  • American Empire
  • Essex
  • General Star
  • USLI
  • Western Heritage
  • Travelers
  • State Farm (but a different agent gave us a quote)
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