Mine is a hobby shop. I just went through an "inspection" by my insurance agent because we had a hail storm and when the adjuster found out I had a forge, he must have said something about it to the insurance company. When we built the shop, seven years ago, we added it to our homeowner's policy. I think it costs $200-$300 a year extra. They never asked what we were doing in there, and I don't think the local agent cared. We told them it was a hobby shop. The agent came two weeks ago and checked it out and they renewed our policy with no change and no increase in price. He checked for fire extinguishers, the size of my forge, what type of stack went through the roof, where I stored my extra coal, and wanted to know if my forge had been installed by (his words) a professional forge installer. I almost fell out when he asked that one. I have a triple wall stainless stack and DID have it installed by a pro. So...
3. I have a gasser.
7. I have three fire extinguishers, I bought them at the hardware store. They still show to be charged.
12. I am covered by homeowners.
13. I got the feeling that, if they found out I sold anything I make, they would drop me very fast.
14. My coverage is just on the building, not my tools.
16. Two times, I have had a friend work in my shop and I have worked in his. We have talked about what would happen if one of us got hurt and agreed to each pay our on bills. I trust him. If I am in my shop, and someone comes in, I shut down and talk to them on the "cold end" or go in the house.