In the past decade, the gig economy in America has skyrocketed, causing the traditional workspace to see an exodus of sorts due to people turning a hobby into a business of their own. Hobbies like photography, yoga, writing, and graphic design are now viable endeavors for people looking to either make some good side money or even make it a full-time gig.
While this may seem like an exciting opportunity, there’s still the issue of insuring your new business. Depending on what your hobby-turned-business is, there may be major insurance implications that need to be laid out before a claim is made. Even if you’re just managing a hobby from your house, you still need some type of business insurance, such as in-home business insurance.
Here’s a better look at insuring your in-home business.
In-Home Business Policy Basics
People who file a claim related to their home business, such as a welding shop or photography studio, usually think their homeowner’s policy covers any damages filed in a claim. What they don’t realize is that even if it’s still considered a hobby that makes a little money on the side, it’s still considered a business in the eyes of the law. Without a policy that covers in-home businesses, even side gigs, individuals could be held completely and totally responsible for damages done.
Homeowner’s Isn’t Enough
Homeowner’s insurance is often looked at as a blanket policy that should cover everything that goes on inside a house, including a home business. However, any way you make money, even just a little money, from inside your home is not considered a hobby. Unfortunately, a little more than half of all people running this kind of business type operate without any kind of business insurance.
This creates a high level of risk for a lot of people just looking to make an honest living or help out their savings account doing what they love. Having this kind of in-home business policy will provide peace of mind and allow for protection over any claim that’s made.
Business Types Not Covered by Standard Home Policy
People might assume that certain side gigs aren’t as risky when it comes to adding on insurance. Because of this misconception, most do not opt to add in-home business insurance. Someone who works with tools might need it, but someone who operates a portrait studio a couple days a week inside their home doesn’t look like they’re at risk for a lot.
But not being covered could open the door to plenty of liabilities down the road because it’s impossible to prepare for everything. Here are some examples of some hobbies that aren’t covered by home policies:
- Personal fitness
- Party planning
- Jewelry sales
- Computer repair
Make sure you look into investing in the right kind of insurance to cover your at-home business. Whether you do it once a week or every day, your hobby-turned-business needs to have the right kind of coverage to protect against all possible risks.