Running (and Protecting) a Side Business

With the internet and some personal know-how, many people look at generating some extra cash by starting or converting a hobby into a product, service, or professional consultancy—all from the comfort of their very own residence or vehicle. While we love the entrepreneurial spirit, the reality is that some business owners may be operating with a false sense of security.


Oftentimes, the thought process for smaller ventures (such as side businesses) is to focus on getting up-and-running as quickly as possible, without a worry about liability or legal business issues. After all, we’re not talking about sprawling empires—we’re talking about a side-gig! Focusing solely on the venture itself 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

Business owners may already carry a comprehensive insurance package with coverage for their personal cars, home, and even excess liability with an umbrella policy. Therefore, they 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, 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 professional insurance service

Regardless of whether you are looking to protect a side business or just exploring the idea, it is always best to consult with a licensed insurance agent to find out any insurance options available for your situation.


Looking for business insurance? Contact Jeff Munns Agency today!


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.


© Jeff Munns Agency, Inc.



Share This