Should I Insure My Wood Workshop?

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Whatever type of wood workshop business you operate, it can make good sense to protect you from accidents and other eventualities. There are several options available, and having the correct workshop insurance can protect a business in the event of accidents, losses, or damages.

The short answer to the question of ‘Should I insure my wood workshop?’ is yes. It is wise to ensure that a business, contents, and equipment are protected from theft or damage. Without insurance, the cost of replacing tools or repairing property can financially cripple businesses that run into problems.

Depending on the type of business it is and its interactions with customers, it will determine which types of insurance coverage are necessary and which are not required for a wood workshop. Each one offers a different type of protection for a business, and you will need to assess which type of insurance cover is needed carefully.

Types of Insurance coverage that to consider include:

  • Public Liability Insurance
  • Employers Liability Insurance 
  • Buildings Insurance
  • Personal Injury Insurance
  • Workshop Contents and Tools Cover
  • Business Interruption Coverage

What type of insurance do I need for a wood workshop?

If your company is a fully-fledged business that employs staff and meets customers on the premises, then more coverage will be required than if your wood workshop is just a hobby. Even as a hobbyist, if a wood workshop occupies premises, insurance will be needed to protect property from fire damage, flooding, or accidents.

As woodworking can often call for specialised equipment and expensive tools that are expensive to replace, it can be advisable to invest in a policy to protect items from loss or harm. Personal accident insurance can be bought to provide coverage for protection from injuries should there be any incidents.

Wood workshops that employ staff will need to have Employer’s Liability insurance to protect the employees as well as the business owner and company assets from financial liability if an employee is injured on the job and brings a lawsuit against your company, you will need to cover the cost of defending the claim. If a business is sued for damages, paying for legal fees and compensation settlements can soon get expensive, and having the right insurance in place will protect you.

If you deal with public members, you can be accountable for damage to their person or property, so adequate protection is advisable. For example, if a customer visits your premises and trips over an electrical cable, you can be required to compensate them for damages. Similarly, if you perform work at a customer’s home or job site, you can be liable for the cost of any damages. Public Liability Insurance will pay for the cost of defending claims and any legal fees that are incurred.

Owners of large wood workshops may decide to invest in Business Interruption insurance to cover loss of business due to external factors like storm damage. This insurance covers the cost of things like lost revenue and building repairs. In addition, if the premises are uninhabitable, then Business Interruption Insurance can cover the cost of moving operations to a new or temporary location to allow businesses to continue working with the minimum of disruption.

How much is insurance for a wood workshop?

If you run a wood workshop that is more of a hobby than a business, then your home insurance may cover up to a limited amount of theft. However, this is often capped at quite a low level, so it is important to check your insurance documentation thoroughly to ensure adequate coverage. Unless you operate on a very small or infrequent basis, you will most likely need to invest in a workshop insurance policy.

Many variables will affect the cost of insurance for your wood workshop business. Policies are based on individual needs and requirements and can vary greatly depending on what is covered. In addition, the value of things like tools, machinery, stock, and equipment can affect the amount of coverage that you need. For example, a large wood workshop with staff, equipment, and tools that carries a lot of stock will need to have much higher coverage limits than if you run a hobby shop.

As an example;

  • A small business that requires Public Liability Insurance and has £5000 of tools or equipment will pay an annual premium of approximately £174.
  • For a business that needs Public Liability Insurance and has £35,000 worth of tools, stock, and equipment, the annual premium rises to around £324 per year
  • A wood workshop that employs 5 staff and needs to have Employers Liability Insurance can expect to pay a premium of £453 annually.

As with all insurance, it is best to shop around and compare quotes. Premiums for policies from different providers can be quite different, so some research can help you to find the best deals.

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