The holidays are prime time for entrepreneurs and hobbyists to turn their crafts into cash. But if you’re running a small side business, like selling baked goods, custom crafts, or jewelry from your home, your increased activity could create serious coverage gaps.
The Business Exclusion Trap
Standard Homeowners Insurance is designed to cover personal risks, not commercial activity. Most policies contain a business pursuits exclusion. This means that if a customer is injured while picking up an order at your home, or if your product causes illness (food poisoning), your homeowners liability insurance may refuse to cover the claim.
Key Risks to Address
We believe caring makes the difference by helping you identify commercial risks that need specialized protection:
- Product Liability: Risk that a product you sell (even homemade) causes injury or illness.
- Increased Inventory: If you store a large volume of inventory at home, its value may exceed your standard personal property limits.
- Customer Traffic: Increased foot traffic for pickups raises the risk of a slip-and-fall claim on your property.
Securing Your Side Business
The best way to protect what matters most, your business and your personal assets, is to have the right policy in place. You may need a small Business Owners Policy (BOP) or a specific Home Business Endorsement added to your homeowners policy. Contact Parkway Insurance Group to ensure your holiday hustle is properly insured.
Learn more about Business Owners Policy (BOP) or Home Business Endorsement by sending us an email at info@parkwayinsurancegroup.com or calling us at +1 281 558 1991.
