Side-gigs and home businesses have the potential to bring in additional cash-flows for individuals. With the internet and personal know-how, people can start and market their innovative products, services, or professional consultancy with relative ease. Unfortunately, if they can operate the business from the comfort of their own residence or vehicle, they may be operating with a false sense of security.
Oftentimes the thought-process for businesses, especially side-gigs and home businesses, is on getting up-and-running with as minimal worry on business and legal issues as possible—after all, these businesses are not sprawling empires, they’re about making money from hobbies and skills! Focusing solely on the business itself may lead to seemingly positive sales results but can introduce issues down the road if left unchecked. Issues that commercial insurance can be designed to help with.
Current policies may not cover it
Home business owners may already carry a comprehensive insurance package, with coverage for their cars, home, and even excess liability with an umbrella policy. You might be tempted to think that their home business would fall under these policies as the business operates out of them. Unfortunately, that is likely not the case. Insurance policies may carry exclusions on coverage based on usage and activities. That means the business operations in the home may rest outside of their homeowners policy’s agreements. Unless they carry some form of commercial insurance for the home business or side-gig, they may be completely out of coverage.
The dangers of relying on unrelated coverage
This gap in coverage can also lead to other dangerous situations, such as the case that their home business causes damage to the home itself. If the event was determined to be uninsurable based on policy exclusions and underwriting, they may be out of coverage for both the home business and the home itself.
Start off right with tailored insurance and professional service
Regardless of whether you are looking to protect a side-gig, home business or other side business, it is always best to consult with a licensed insurance agent to identify potential gaps in coverage, and what coverage is available. At Jeff Munns Agency, our team of insurance agents stand ready to assist you in finding independent insurance solutions for your personal and commercial needs. We are accessible online, over the phone, or at our office in Lincoln, NE. Let’s talk insurance >
Note: The examples and descriptions used throughout this article are for general information purposes only, not legal advice. All scenarios presented are fictional, any similarity is merely coincidental. Coverage is not guaranteed, rather they are subject to the decision of insurance underwriters and other authorities. Policy/coverage availability and limits can vary based on person, location and other variables. Please consult your insurance agent and review your insurance policies to understand your existing coverage and/or potential coverage options. Read our disclaimer.
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