Small business insurance?
Do I need to bring small business insurance for a quilting business in my home that would enjoy from 4 to 6 people entering my home weekly to gain their quilt tops quilted? My state is Nevada. No one would be using my quilting machine. I be quoted $225 per year minimum coverage for 300K liability and 600K for the other coverage plus coverage on my machine for embezzlement or damage. The piece of equipment costs 6K . Wouldn't my homeowners policy cover me, given these circumstances?
Answers: Business liability is specifically excluded on a homeowners policy. So, if you have a client come to your house & they procure hurt & sue you, you will have to recompense any court award, your homeowners policy will deny coverage. Also, most homeowners policies give almost $2500 on premises business contents (your contents, not others contents). Anything that is used contained by the course of your business, even once in a while will nose-dive under this category.
Is this business within the house or a detached structure? If it is in a detached structure, your homeowners policy will specifically exclude the structure unless you account it as a business structure and pay an spare premium.
So, get the business policy (most small business policies hold a $500 or $750 minimum premium so you are getting a REALLY good price. See what it is to increase your liability to $500,000 or $1,000,000 & to increase your business contents because I'm sure you do not use JUST the quilting appliance in the course of your business (add your desk, stool, phone, computer if you use it in business, regular sewing contrivance, material, thread, bobbins, scissors, etc)
I am not a P&C specialist, however, I believe most HO policies own an exclusion for a home business. In any case, you really should enjoy at least minimum coverage for an operation of this size.
You've get people and assets on a worksite; that's a lot that can surface, ie. fire, falls, accidents, E&O, etc.
My HO policy salaried me $17k for a pipe break. We would have be up a creek without it. $225 is REALLY cheap for peace of mind and individual responsible with your home and financial adjectives.