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CNC shop being turned down for business insurance. Who insures you?

dchan99

Plastic
Joined
Apr 27, 2022
Hi everyone, I'm hoping someone is able to offer some direction. I'm a partner to a small contracting CNC machine shop and we're in the market for new business insurance. We've been in business for 15 years with current sales in the $750-$1mil range. I have a few potential clients requiring us to carry a general and product liability policy, but I haven't been able to find a single insurer wanting to cover us. Sentry has turned us down for having too few employees, and I have no-quotes from many others. Can anyone point me to a company that might work with us?

Also, we have contracting work in aerospace and defense which is done under a NDA. What should I do when an insurance company requests info such as; sales for military/non military, sales for each type of aircraft, types of products manufactured, programs involved in, names of customers? Even if I knew any of this info, I don't think I'd be able to disclose of it. Thanks and appreciate any advice.
 

Booze Daily

Titanium
Joined
Sep 18, 2015
Location
Ohio
You’re a job shop? So am I. One man, me. I use Cincinnati Insurance.

You’re talking too much. These guys know nothing about machining. You’re not trying to get them as a customer so don’t show them a part that goes in the fuel pump for a 747.
Show them a print that says “impeller “ and ask “Do you know what this goes to?”
When they say no, say “Me neither”.

Stress that you are a make-to-order manufacturer and do no design or engineering.
You simply make whatever is drawn on that piece of paper.
 

Freedommachine

Hot Rolled
Joined
May 13, 2020
We did too for 20+ years, no claims, then one day they canceled us a few years back, liberty mutual now though their tv commercials make me sick they are so stupid

Liberty Biberty; they let you customize your car insurance so you only pay for what you need.

The real question is, who to call when you have a structured settlement but you need cash now?

I dont even watch tv and that crap is still stuck in my head lol.
 

barbter

Diamond
Joined
Oct 27, 2007
Location
On Tour...
You’re a job shop? So am I. One man, me. I use Cincinnati Insurance.

You’re talking too much. These guys know nothing about machining. You’re not trying to get them as a customer so don’t show them a part that goes in the fuel pump for a 747.
Show them a print that says “impeller “ and ask “Do you know what this goes to?”
When they say no, say “Me neither”.

Stress that you are a make-to-order manufacturer and do no design or engineering.
You simply make whatever is drawn on that piece of paper.

This was my policy too - "we're bit makers" (although I knew everything we made wasn't flight critical).
My insurance was around 1500£ per year - I know a friend who was quoted for "aerospace insurance" and that was 25+k from the same company.
 

triumph406

Titanium
Joined
Sep 14, 2008
Location
ca
AIS is my agent. Can't remember who the insurance company is

Ok I checked the policy it's Evanston Insurance Company (whoever the f'k they are)
 

triumph406

Titanium
Joined
Sep 14, 2008
Location
ca
I have a customer who's expecting me to have a policy with Commercial general liability limits of:
Each Occurence = $5mil
General Aggregate = $5mil
Products Comp/op Agg = $5mil

Cyber liability
Each Occurence = $2mil
Aggregate = $2mil

Just to set foot into their building.

I talked to AIS, they just laughed, their words were "if you can find those limits, you will not be able to afford the premium" They know I'm a single proprieter.

I figure it's some young millenial in the office pulling these values out of their arse.
 

chip_maker

Stainless
Joined
Jan 14, 2006
Location
Moira, NY USA
I got dropped because I had the word aerospace on my website.

My insurance broker said remove the words military, defense, and aerospace.

No troubles since then.
 

McClure Machine

Aluminum
Joined
Mar 22, 2018
I feel for you and it's very difficult to understand how insurance is done anymore.
I am not a expert but do have 40 years dealing with insurance and customers requirements.
First, in 2022 5 million limits are normal most all of my customers require this.
Commercial auto and workman's comp that covers owner and partners not just employees is almost always required.
Second, you have to decide if you are wanting insurance to protect you or just to meet a customers requirements. If you are doing aviation or automotive etc. Work but don't disclose it, if you have a claim your insurance company will decline the claim as you obtained the insurance through fraud.
Example, if you use a vehicle for your business to pick up, drop off, etc. and get in a accident and you don't have a commercial auto policy if the insurance company finds out you were using the auto for business they will decline the claim.
Get a good, insurance broker that specializes in business insurance and they can help you.
The down side of this is the companies that require these insurance levels understand they are going to have to pay for it, but your shop rates may eliminate some small customers who don't.
For me I have just found I do business with the multi billion dollar companies but the small companies I just charge too much and I have a few small shops I direct them to.
Depending on your sales, a multi thousand dollars policy premium is very normal.
Credit, net worth of the business, etc are all considered. The insurance underwriter wants to see you have something at risk not just them. If everything is rented, financed, the business is not in good financial shape etc. It will be hard to get a insurance company to write a policy.
You have to remember you are paying a insurance company maybe 5k a year and they have a 5 million potential payout. They want to reduce the chance of having to pay a claim to the minimum.
I use farm bureau and have for years and with multiple state locations. All my insurance is with 1 company business and personal.
Good luck
 

DDoug

Diamond
Joined
Oct 18, 2005
Location
NW Pa
We did too for 20+ years, no claims, then one day they canceled us a few years back, liberty mutual now though their tv commercials make me sick they are so stupid

How doo you think I feel ????

Oiy !

And I do not look anything like that Doug....
 

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CAMasochism

Hot Rolled
Joined
Jun 6, 2019
Location
DFW, Texas
J. G. Wentworth (877)CASH-NOW

Liberty Biberty; they let you customize your car insurance so you only pay for what you need.

The real question is, who to call when you have a structured settlement but you need cash now?

I dont even watch tv and that crap is still stuck in my head lol.

I swear to whatever non-denominational god that is listening I WILL SLAP YOU.

*Edit
Oh damnit all to hell, now you've gone and gotten the Dalworth Clean jingle stuck in my head.
 








 
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