Home Business

How many times have you thought to yourself ‘I could make that at home and sell them on the side for extra cash!’ Or, maybe you’re a stay-at-home parent and need to bring in additional money to help pay the bills or save for a vacation.

Many times, and without a long-term plan, people will have these very thoughts and dive head-first into a home business without considering the potential legal and financial ramifications. At first, these “businesses” are usually considered temporary, but what if it’s successful and you want to build and sustain it? In such instances, does that person consider if their business activities are covered under their normal homeowner’s policy or not? Most of the time, they do not.

It is important to know that in Ohio, if you are bringing in revenue north of $2,500 per year via an in-home business, your homeowner’s policy will not cover perils that are related to that business. In addition, it may not cover inventory or property that is used to run the business if something were to happen to the house, such as a fire. If not properly covered, your homeowner’s insurance will not pay for business losses and you will be liable for any property damage, bodily injury, theft, or various other perils that may occur. Fortunately, W.E. Davis offers a Residential Business program as well as commercial plans that will assist in mitigating all of your risk and help you to feel safer knowing that both your home and your business are properly covered.