i'm just going through the process of starting my own shop... i will only make manifolds/flanges on the side when things are slow. my main business will be targeted at the industrial manufacturing sector and general machining with the hopes of eventually moving into cnc work.

i was just wondering who is incorporated and who has insurance that actually allows the manufacturing/fabrication of automotive parts.

getting incorporated is easy and is a wise thing to do because if someone decides to sue you for some reason, then you are protected because they will be going after the company, not you personally. if you are a sole proprietorship then you are vulnerable to being sued personally because of liability.

as for insurance, i mentioned to my broker that i'd be making some automotive stuff on the side to fill the slow time and this caused a lot of insurance companies to not even look at insuring me. i can't imagine it would be too cheap to be insured as a company that fabricates something as critical as roll cages.

so post up fabbers, lets see who is doing things right!

 

i dount anyone had the insurance. lets face it, your basic h-t fabber is not producing enough manifolds or making enough money to pay the high premiums

 

We have insurance that covers all of the work we do be it fabrication, installations, dyno'ng cars, etc.

I think for exhaust it would be kind of pointless since I can't think of anything horrific that would happen if an exhaust fails. But for suspension components, roll cages, etc. we wouldn't be doing them if we couldn't be insured for it.

 

You folks should also remember that due to relatively recent developments, incorporation isn't the only way to limit your liability (see what I did there)... There's a wonderful construct called the LLC, or Limited Liability Company. Less complicated that a true Inc, but they accomplish the same goals, and are designed for small businesses with a limited number of owners/managers.

 

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Good choice. The internet has driven prices down to the point where you can hardly get a reasonable hourly rate for professional fabrication work if it has anything to due with cars.

I am a sole proprietor, employ 6 staff members. I am bad at paperwork, so staying a sole proprietor keeps me from having to do so much.

I am insured locally, but the policy is underwritten by Lloyds of London - famous for insuring some of the highest liability shops. I have workers comp insurance where everyone in the shop is covered by one of the highest brackets due to my milling machines and injection molder. Off the top of my head, I think this costs me around 5k a year. I have basic business insurance which covers my building and everything in it including highly valued proprietary injection molds and fixtures. That costs me around 4k a year. Liability is basically lawyer insurance. That costs me another 3k a year.

On top of those costs I have heat, power, building lease, and the cost of staff members. Being in business for yourself isn't all it's cracked up to be. I make the same money per week as most of my staff but work 70 hours a week minimum.

 

i can't even afford to really do much car stuff on the side anymore at all. there's just no money in it, not when joe blow on ebay or wherever can build it in his garage for less than half my cost. i don't know how they do it but i can't afford to work for $12.00/hr on company time let alone on my side project time.

 

My shop and dealers insurance is 3847 a year for a 2500 square foot shop, and as much as I could get

 

I couldnt get 5-10 million in Product Liability insurace to make Aerospace or Automotive parts Most insurance companies wont touch it or even consider it. I was bidding on a goverment job for helicopter parts and couldnt get insurance so I stopped bidding. I feel this is to the fact that I got robbed, my insurance company didnt pay and I sued them for millions and waiting to go to court.

My shop is a LLC, Easy way to protect yourself

But I agree there is few dollars to be made in the auto fabrication. you get low balled and there is more money to be made else where. Ive got in to making parts for bridgeports and it seems to pay the bills for me