Do you love making crafts? Do you have no where to keep your mountain of creations anymore? Have you dreamed of opening your own Etsy shop? Longed to sell you things at your local weekend market? Do we ask too many questions? The answer to that last question is yes, unfortunately it’s a side effect of being an insurance broker.
If you do ever decide to sell your artistic creations, you probably want to let your insurance broker know. Most policies have a clause stating that the policy only remains in-force if your home is used for personal use. That means if you work from home or run a business from your home, your policy could be void. As soon as you start making money from your hobby that could become an issue for your insurance coverage.
Why does it even matter?
Long story short, Home Insurance companies are not in the business of covering the liability for a business. In most cases your knitted hat won’t harm anyone if you sell to them, but what if you accidentally left a needle in a sweater that you sell. If that needle harms a child, you could be sued for their injury. The people who sue you will automatically sue your Home Insurance provider as well, because they are covering your personal liability. That’s why we need to know when you start a home based business, no matter how small.
Another aspect to consider is that your personal contents are covered by your policy. However, once they are used for business use they are no longer fully covered by your policy. We don’t want you to be out spending your own money at Michael’s after a claim, so to keep those items insured you’ll want to give us a call.
Are my crafts going to cost me thousands?
Probably not. In most cases, we can simply add on a bit of extra coverage to your policy so that you are covered no matter what. The cost will depend on the risk associated with the business. Someone who knits hats to sell at a Christmas Fair will pay a pretty nominal amount, but someone who is running a catering business from their kitchen will expect to spend more.
So my Home Insurance can always cover me?
No, not always. Again, it depends on the type of business you’re running from the home. Things like whether you have clients or customers visiting you can make a difference too. If your Home Insurance company is unwilling to provide you with insurance under their policy, the next step is to look into a Commercial (or Business) insurance policy.
Just give us a call!
If you are ever worried that what you are doing in your home may be affecting your Insurance coverage, please give us a call. It’s much nicer spending a few minutes of us asking you a ton of questions, than to have to deal with a denied claim.
Want to do more crafts?
Also, if anyone wants to attempt to knit a house we’ve got just the pattern for you: https://www.ravelry.com/patterns/library/gingerbread-house-8. We probably won’t insure it, but we’d love some pictures if you try!