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Ieuter Insurance Group Blog

All You Ever Wanted to Know About Insurance

Do I have coverage for my small or part-time business under my Homeowners Policy?

In this day and age it is very common for people to have a small business or a hobby that brings in some extra income. Whether you have a full-time job and enjoy earning some extra income with your part-time hobby, or you own your own business and operate mostly from home, you may have some issues getting coverage on possible property or liability claims.

The term “business” defined in a home-owners policy can describe many different situations, including some hobbies that a policyholder may not have even considered a business.  Business is defined as a trade, profession, occupation, or any other activity engaged in for money or other compensation. To be considered compensation, someone would have to receive $2,000 or more within the 12 months prior to a policy period. So whether you’re doing accounting or baking cookies, if you operate out of your home and earn more than $2,000 you could have some exposures that aren’t covered.

There are many exposures that could result from having a part-time business at home. These exposures include personal property, property of others, personal advertising injury, employment related exposures, and many more. It is important that you talk with your insurance agent if you think you may have a business exposure. Many times you can get a very cost-effective endorsement or a small business policy that could protect you from any possible gaps in coverage.