Fun Insurance Experience Today

[fireground_piper]

I make and sell the occasional pipe as a hobby with the only goal being to cover my paperwork/material/fees which includes a small business insurance policy.

I was told today they won’t renew for another year because making wooden pipes is “ineligible exposure” for their risk.

I thought some people might find that fun. I don’t know if B&M stores have run into such an issue or may find themselves in the future with such an issue as underwriters determine anything related to tobacco is an “ineligible exposure” risk. Or maybe I just hit the lottery today.

 

[ashdigger]

All insurance policies are simple contracts. They might just want clarification or a certain exclusion.

I sometimes tell people that they’re about to find out how good their contract was written and paid attention to.

Also, shop around, you’ll get covered.

 

[fireground_piper]

I did some shopping prior. I might do some more, we will see what I feel like just to have some fun.

They were absolutely aware of what I was making prior. I had to send the samples of my work when they were determining coverage policy initially and the agent reviewed it live on a call so they’ve had a change of risk exposure since it would seem. I wanted to be sure they were 100% aware of what they were covering work for so I was very up front about it.

 

[kcghost]

I am sure you'll find plenty of coverage. You might even get coverage from the same company but different agent. Sometimes the local person may be setting his own guide lines.

 

[Lucashly]

Who is this insurance company? Never seen this before.

 

[fireground_piper]

Who is this insurance company? Never seen this before.

Eh, I'm not getting into names because it's not exclusive to them. It was the 3rd or 4th company I tried to get to write a policy for me so it's not against my previous experiences. The others just didn't want to do it at the start, this one did and now they don't which is more of an annoyance for me than them.

Anything tobacco associated is an elevated risk, I understand that. I had just hoped to avoid churn and find someone who absolutely knew what I was making and then cover it. The intent was to avoid wasting the hours on the phone and documentation because of any type of misunderstanding.

 

[warren]

Are you looking for a"general" business sort of policy or, something special to only cover your "part-time" avocation? That'll make a difference in the number of agencies willing to even offer a quote.

 

[fireground_piper]

It was a general business owners policy based off the business type, product being made, years of experience, expected yearly revenue, employees, etc.

They asked all the questions I’d expect someone to ask for insuring a small business (as did the other companies I called before this one). It is just for my small hobby work to CYA and I focused on agencies that promote small business coverages.

 

[warren]

Do you have a friend in the insurance business? Perhaps they could shed some light on the problem. What yo're seeking seems pretty run of the mill to me.

 

[Auxsender]

Insurance is a racket.
Are you certain you need/want it?

 

[warren]

Insurance is a racket.

In what way? Any particular type of coverage you're referring to? Or, are you simply averse to reducing your risk/liability?

 

[AJL67]

Well someone in cali might get cancer and decide to sue the pipe maker, or the neighbor will, or some dumbass california thing.

 

[Murphestopheles]

Sounds ridiculously annoying, sorry to hear that

 

[Auxsender]

In what way? Any particular type of coverage you're referring to? Or, are you simply averse to reducing your risk/liability?

I don’t understand why a corporation that makes enormous profit every quarter needs to exist between me and the services I seek.
Why can’t I just go to a doctor without getting permission from a hugely profitable corporation?
Why is it illegal to drive without car insurance?
Why do health insurance companies deny claims other than their lust for profit?

In my mind, insurance is like extortion. “Give us money or something bad will happen to you”.
Bad things will happen and insurence might reduce your liability, or, they might deny your claim. That uncertainty is a risk in itself.

I’m open to an education on this topic.
Maybe you can help me understand.

 

[bullet08]

I don’t understand why a corporation that makes enormous profit every quarter needs to exist between me and the services I seek.
Why can’t I just go to a doctor without getting permission from a hugely profitable corporation?
Why is it illegal to drive without car insurance?
Why do health insurance companies deny claims other than their lust for profit?

In my mind, insurance is like extortion. “Give us money or something bad will happen to you”.
Bad things will happen and insurence might reduce your liability, or, they might deny your claim. That uncertainty is a risk in itself.

I’m open to an education on this topic.
Maybe you can help me understand.

I perfectly understand your point of view. However, I also understand insurance company's view. Both view trying to make/save money. Very normal. Who's right? Depends on which side you want to stick to.

 

[Auxsender]

Also, I believe insurance companies are allowed to behave in opaque and generally underhanded ways. For example, after paying into my policy for my last car, when it was totaled, they stiffed me on its value by 10%. Why? Their own profit, that’s why.

Another example is the way they generally interface with their clients. I believe the opacity of their communication with their clients and some of the marketing I’ve seen is intentional to cause confusion and decision fatigue in order to boost profit.

Again, I’m open to being schooled if you know better.

 

[alan73]

I work for an insurance company . Why do you have insurance related to your pipe making hobby ??? You might be the only hobbyist pipe maker in the world to have have insurance . Why bother ? Any potential injury is covered by by personal health insurance .

 

[alan73]

Also, I believe insurance companies are allowed to behave in opaque and generally underhanded ways. For example, after paying into my policy for my last car, when it was totaled, they stiffed me on its value by 10%. Why? Their own profit, that’s why.

Another example is the way they generally interface with their clients. I believe the opacity of their communication with their clients and some of the marketing I’ve seen is intentional to cause confusion and decision fatigue in order to boost profit.

Again, I’m open to being schooled if you know better.

Learn to negotiate . They offer you you X you can get 1.1X you just gotta ask.

 

[warren]

I don’t understand why a corporation that makes enormous profit every quarter needs to exist between me and the services I seek.

Insurance companies make their profits from investing the monies you pay them.

Why can’t I just go to a doctor without getting permission from a hugely profitable corporation?

You can just don't carry health insurance and you won't have to answer to them.

Why is it illegal to drive without car insurance?

Take that up with your state. Mostly though, injured parties need to be made whole and uninsured drivers usually do not have the monies to cover medical bills or replace your vehicle if necessary.

Why do health insurance companies deny claims other than their lust for profit?

There's a lot of insurance fraud, faked injuries and the like. Check your provider and get a complete understanding of what is covered and what is not. You may be in for a big surprise if you are under a policy provided by your employer. If you are dissatisfied with a determination, take it to the insurance regulators in your state.

Insurance companies make their profits from investing in real estate, business and such, not in denying claims. They take the little premiums you and I pay along with all of their other clients and leverage it all to invest in big, money making operations such as shopping malls, real estate, stocks, bonds and such.

You have a simplistic view of how it all works. Your insurance broker may work for the company insuring you or, simply serve as a representative for any number of insurance companies. Your insurance policy may, in fact, belong to a reinsurance company you've never heard of. The company you purchased the policy from also wants to reduce it's risk/exposure.

 

[fireground_piper]

I work for an insurance company . Why do you have insurance related to your pipe making hobby ??? You might be the only hobbyist pipe maker in the world to have have insurance . Why bother ? Any potential injury is covered by by personal health insurance .

Likely, yes. No one needs it until they need it and by then it’s too late.

Being in insurance, I’m surprised you couldn’t think of all the creative ways someone could injure themselves and want to place blame somewhere other than themselves. I certainly can, do you see the stuff people get away with suing for these days? The policy was reasonable for the coverage.