Whether you are an artist, photographer, Mary Kay consultant, hobby farmer, or pursuing another passion, there may be insurance ramifications to consider.
The first step is asking the right questions: Who, what, where, when, why, and how?
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Who does my hobby involve? Am I seeing clients?
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What activities does my hobby include? Is there inventory to insure? Are there equipment or tools? What is the primary purpose?
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Where does the hobby take place? Is there a liability exposure? Are people coming onto the property? Does it require travel?
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When do I work on this hobby? How often am I working on this hobby in terms of hours?
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Why am I involved in this hobby? Is it for pleasure, profit, or personal fulfillment?
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How much revenue am I generating? What are my annual sales?
Even though a home insurance policy allows for some incidental business activities, it typically does not cover true business exposures. What exactly is an incidental business exposure? It is when a business activity occurs on residential premises, sometimes requiring additional insurance. These two arenas—personal and business—don’t always mix when it comes to insurance. If it’s personal, it needs to be insured personally. If it’s business, then it requires a business policy.
Coverage may be available through your home policy by adding an incidental business endorsement. Alternatively, the nature of your hobby may require a standalone business policy or BOP (Business Owners Policy).
This is a great opportunity to contact Gallen Insurance for an evaluation. Let’s discuss your hobby and ensure you are adequately and properly protected for your passions.
