Business Insurance?

altheau · Joined: 30 Sep 2009 Posts: 144

I am setting up an art business and have come to the question of insurance.

I will be working from home, but will not be having customers visit my home (all work to be off the net or phone etc as my place is just not big enought to present a work area that looks professional etc) I will of course need to send out pieces of art to customers.

Anyone else do this? What sort of insurance do you have if any for your business

The main options I have considered are insurance for goods in transit, also wondering about insurance against liability in case something i have produced hurts someone (mainly thinking framed pieces in shows or exibitions) note sure about the last one though

Devilbiss · Joined: 06 Jul 2007 Posts: 2532 Location: Sydney

Sounds to me like you don't really need business insurance.
You can send your items via registered mail and also insure them at them at the post office counter.

thecatsgrin · Joined: 18 Apr 2009 Posts: 2163 Location: Gippsland

I recently completed a business course and am in the exact same situation as you have described. I do sell retail at a market though but am covered by the markets insurance.
To receive my certificate for the course I was told I had to have insurance... It cost me around $380 and so far has remained unused... It does cover me though if my work gets lost, stollen or damaged whilst at shows etc... Might be handy if you are paying a small fortune for frames etc... but the excess to claim is way more than i frame things for, or sell paintings for.
The only positive for having it so far is that I can have a display at a big expo next year with out the fuss of chasing up insurance for the day...incase someone chews off some paint and chokes... Takes the painting home and smokes it etc...
I would be interested in knowing how exactly someoe could hurt themselves with a painting that they would sue ME for!!
All up I havent found it useful, I can imagine other ways to spend $380....
I cant see my self renewing the policy next year.

Devilbiss · Joined: 06 Jul 2007 Posts: 2532 Location: Sydney

thecatsgrin · Joined: 18 Apr 2009 Posts: 2163 Location: Gippsland

altheau · Joined: 30 Sep 2009 Posts: 144

Thanks guys for the info and help. It is all a bit confusing at times =]. I don't frame my own stuff as yet, I wonder if i got it framed else where and then sold it on (I only do drawings so they mostly need to be framed) who would be liable if it broke and hurt someone. The framer i guess?

I think I will pass on the insurance at the moment and see how I go. Still need to talk to the council to make sure there are not any special conditions on working from home.

Settng up a business is so quick and easy Rolling Eyes

phew

thecatsgrin · Joined: 18 Apr 2009 Posts: 2163 Location: Gippsland

If you arent having customers to your home there is usually no conditions set by the council (it may be different where you are though) usually the only problem the council here has is if the home business doesnt have parking facilities and there are no complaints from neighbors.
When you do contact them ask if there is a 'home-based 'business network or groiup in the area, as we have one down here and they offer all sorts of support and suggestions.
If working from home it is good to contact your insurance company anyway, as if you are using more than 5 % of your home for work then you will need extra cover (I think!) again it also alters if you are having customers... they will tell you all the details you will need to know!!

Good luck!!

Devilbiss · Joined: 06 Jul 2007 Posts: 2532 Location: Sydney

Anyone can set up a business from home.
You can even have a sign in your front yard as long as it isn't over 100cm square.
The only concerns the council might have would be about parking, and I doubt that you would have heaps of cars parked outside your house at any one time.

altheau · Joined: 30 Sep 2009 Posts: 144

Ahhh ok, that is good to know. I suspected that it was due to possible traffic flow to the house etc (parking and the like) if I actually had customers come to the house, but I will not be as I don't have a studio for people to visit.

Do you guys find it is fine to use your home address for the business, or did you setup a PO Box. I considered doing this but not sure it matters to much. Hope to sign up for an ABN soon and need to get a few more things sorted first.

thecatsgrin · Joined: 18 Apr 2009 Posts: 2163 Location: Gippsland

For the first 4 years of my business I had a PO box, but now I dont bother, alot of wholesalers prefer to know a real address over a PO box anyway... I havent had any negative experiences, and on paper no one knows it is a home residence aswell and not a commercial address.
I am hoping to set up a home studio in the very near future, and even then I may only have a few visitors during the open studio tours in May (we have Creative Gippsland which is a month long celebration of all the art forms in our district, including exhibitions, demo's and open studio tours etc...)

The bottom line though is the ABN it is your real proof of business, even more so than your business name registration.
I was registered for GST but this time round I havent bothered. The small amount of GST that I pay, comes no where near the cost of an accountant or the time it takes to do bas statements, so I dont bother with it, it is only compulsory if you earn over 75K (it used to be 50K)
again, I have had no negative responses from customers or Galleries in regards to this! Smile

Devilbiss · Joined: 06 Jul 2007 Posts: 2532 Location: Sydney

If you are going to have customers coming into your house then you should have public liability insurance.

thecatsgrin · Joined: 18 Apr 2009 Posts: 2163 Location: Gippsland

House insurance covers me as it is such a rare occurence, and i take up negligible space (this will change once I have a studio, but I did speak to my insurance priovider...you have to check in with them about everything...they will find any reason not to pay up if anything goes wrong, so this is one base you MUST cover if you ever have anyone over!!

heartco · Posted: Fri Nov 20, 2009 8:10 pm Post subject: Re - Business Insurance?

I had to have business insurance when I was completing a NEIS course. I found it to be expensive and not really necessary. I, like you altheau, am running my art business from home with no customers coming in. Most of my concerns would be covered by house and contents anyway. And if not, well I'll just have to deal with it if it happens.
But......as things are moving forward, and I have more equipment I might just look at that again. Maybe.

One of my concerns was if, when on a photo shoot of an animal, if the camera flash should spook the animal, say horse, and hurt itself or someone.

I suppose it's peace of mind, but like all insurances, unfortunately only seems worth it if something bad happens.
Heidi