Shop Insurance?

[eagle396]

Hi!
I am pretty new here and to the hobby. It started out with my son's Eagle Scout Project. He collected, repaired, and gave away over 100 bicycles to needy families for Christmas.

I have enjoyed the last 3 months working on the bikes. I want to continue doing the give away bikes but also do more. I am hoping to start a small shop that can offer low cost repairs to kids that can't afford to take their bikes to an expensive shop. I would also sell used bikes. Most of the money raised would be used to repair the bikes we give away.

To do this, I need to open some accounts with suppliers. To do that, I need to have insurance. I have a plumbing business (for over 18 years) so I am used to running a business. I have insurance for that and contacted my agent. He seems to be having a problem finding what I need.

Does any one have insurance? With who? About how much does it cost?

Also, do you have any suggestions about what I want to do? Suppliers? Anything?

Thanks so much!

 

[sm2501]

Alot of insurance company's will not write a liability policy for bicycle shops because of risks and possible losses. I have used Sentry for over 20 years but I know they will not write bike shops any longer.

 

[militarymonark]

just call up some other bike shops and ask who they use?

 

[oldroads]

I run a web site and a walk-in retail shop for used/vintage bikes near Boston.
Insurance was not easy to find, and it is not cheap. My company was able to write it for me, mostly because I've been doing business with them since the early 1970s.
I tried to get a friend set up (same type of business, but in another part of the state) and they could not help him.

 

[eagle396]

Not having very much luck with finding the insurance. Like most have stated, many companies will not write a policy. Some will if you have a big store and only a small, 15-20% of sales are from repair work. If you mention anything about selling used bikes, forget about it. Another way of keeping the little guy down.

I got a quote from Erie today, it is doable I guess. Still waiting to hear back from some others. I saw a ad for a place, it turned out to be The Hartford, they said no for mostly repairs. Same for Nationwide who has my home and car policies now. My current business policy is with Merchants, no way from them either. CNA was to get back to me and didn't. Also waiting on State Farm and another independent agent that supposedly can help.

I have offered to change my other policies to any company that will do it if that helps. I have to wait and see what happens with that.

 

[HowieBikeman]

Not having very much luck with finding the insurance. Like most have stated, many companies will not write a policy. Some will if you have a big store and only a small, 15-20% of sales are from repair work. If you mention anything about selling used bikes, forget about it. Another way of keeping the little guy down.

I got a quote from Erie today, it is doable I guess. Still waiting to hear back from some others. I saw a ad for a place, it turned out to be The Hartford, they said no for mostly repairs. Same for Nationwide who has my home and car policies now. My current business policy is with Merchants, no way from them either. CNA was to get back to me and didn't. Also waiting on State Farm and another independent agent that supposedly can help.

I have offered to change my other policies to any company that will do it if that helps. I have to wait and see what happens with that.

You might discuss the following concept with the agent that handles your Plumbing biz with Merchants: "You would use the same company name as your Plumbing biz but you would publish a dba for the bicycle department". Inasmuch as Merchants is providing the PLI for your Plumbing biz they would most likely continue the policy. Remind your present agent that the suppliers from whom you purchase your supplies, all have PLI, so in the unlikely event of a claim, your insurance company would be able to subrogate against your suppliers insurance carrier (you will most likely be able to obtain a Certificate of Insurance, naming you and your dba as 'additionally insured'). If Merchants still say no, contact me by email and I will give you the name of an agent that I think will be able to assist you. If you tell me the city & state where your bike biz is located I will be able to give you some names of wholesale suppliers of bike parts and accessories. You can contact me thru my website, www.HowieBikeMan.com, use the "contact" feature. This PLI issue is probably solvable. I am not an insurance agent nor do I receive any compensation from insurance agents or companies; I am simply trying to assist with my past expierences.
Cheers, Howie