Hello AAW Members,

This is an important announcement from the AAW. Please forward it to your members. Most professional turners know that their homeowner's insurance policy does not cover their private business activities, inventory, teaching, equipment and property. Most of them have either done without insurance at great risk, or at great expense and effort, have found an agent to cover them. On the other hand, most of the rest of us assume that our homeowner's policy insures us even if we do some sales of our work or occasional teaching. Laws that regulate insurance vary from state to state. In North Carolina, it used to be that activities that were occasional in nature and did not amount to a "substantial" amount of income were covered by one's homeowner's policy. A few years ago, it changed to say that "any" activity that was commercial in nature, no matter how few dollars were involved, was not covered. That means that if someone came to my home to buy a piece and was injured, or if my shop burned, or my tools were stolen, or I taught a private class, I would not be covered. Each member should check with your own insurance agent to see if all of your activities are covered by your homeowner's insurance policy.

As a service to our members (no part of the premiums go to AAW), the AAW has sought out a group policy that individual members can purchase at reasonable rates to cover their commercial activities of woodturning. The policy that we have found, can insure AAW members in the USA with the exception of California, Hawaii, Louisiana, and Washington DC. If someone can recommend insurers that will cover Canadian, foreign, or members in these excluded locations, please let the AAW know.

The Managing Agency Group of Hilb, Rogal and Hobbs, a large and well-respected national firm offers the policy that the AAW is sponsoring. They have been offering a similar policy to members of the American Crafts Council (ACC). The underlying policy is with OCG, the Ohio Casualty Group. This policy includes $1,000,000 general liability, $1,000,000 for products liability, $10,000 medical expense, $300,000 fire legal liability, and with building and personal property for any amount of your choosing, from $2,500 up to $100,000.

AAW Professional Insurance Program Summary

Below is a summary of the policy benefits to any insured member. The policy will pay the actual amount of the loss sustained up to the following limits:

Building
Building amount
Business Personal Property
Limit Contents amount
Loss of Income Limit: Actual loss
Sustained Money & Securities Limits:  (On Premises) $10,000
Sign Coverage: $10,000
Valuable Papers Limit: $25,000
Accounts Receivable Limit: $25,000
Seasonal Increase Limit: 25% of Contents
In-Transit Limit/Off Premises Limit: $25,000
Employee Dishonesty $10,000
Fire Department Service Charge $15,000
Interior Glass $100/pane, $1,000/occurrence
Pollutant Clean $10,000
Personal Effects $2,500/5,000
Newly Acquired Property (Building) 25% up to $100,000 (Contents) $25,000
Debris Removal $25,000
Jewelry - Theft Limitation $5,000
Business Computer $25,000

COMMERCIAL GENERAL LIABILITY
Each Occurrence Limit: $1,000,000
Products Liability $1,000,000
Aggregate Limit: $2,000,000
Medical Expenses $10,000
Fire Legal Liability Limit: $300,000
CONDITIONS:
DEDUCTIBLE: $250
VALUATION: Replacement Cost
COINSURANCE: None
COVERAGE: Special (All Risk)
Each person's coverage will be the same except for the building and personal property coverage. Your premium will be based on your location and how much building and personal property coverage that you request. To apply and get a premium quote, down load an application at http://www.woodturner.org/community/pop/insurance_info.html , print it, fill it out, and mail or fax it to the address on the application.

You must be an AAW member to apply.
John Hill - Chairman AAW
Chapters and Membership Committee
828-645-6633 johnrhill@charter.net