PROTECT YOUR SIDE HUSTLE
How To Protect
Your Side Hustle Home-Based Business
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Side hustles and home-based businesses are on the rise . We are living in a time when it has never been easier to earn an income from home , especially through technology and social media . Over the past year , in the midst of a pandemic , we saw side hustles and homebased businesses become a necessity for many looking for new ways to earn extra money .
According to a survey conducted by Side Hustle Nation , nearly 45 % of Americans report having a side hustle , equating to roughly 70 million people .
If you ’ re reading this , there ’ s a good chance you fall into this category .
Perhaps you started offering professional services online .
Maybe you are handcrafting products to sell on Etsy and at local markets and craft shows .
Or you could be inviting clients to your home for tutoring or hair appointments .
In all of these cases , the risk is real , and it ’ s likely not covered by your standard homeowners insurance policy .
WHAT ’ S THE RISK ?
While most homeowners insurance policies do cover a limited amount of business equipment , it ’ s likely that what you own is worth more than your policy ’ s limits . Also , your homeowners liability insurance probably won ’ t cover any injuries that may occur to the employees or clients that you have on the premises .
COMMON BUSINESS COVERAGES FOR HOME-BASED BUSINESSES
Common coverages for home-based businesses include the following :
Business Property Insurance
If you use any kind of equipment to run your home-based business — including a computer , fax machine , printer , furniture , etc .— you should have business property insurance to be insured against loss or damage to property used in your business . That ’ s because your homeowners policy doesn ’ t typically provide coverage for business equipment losses by fire or flood . Instead , you ’ d need business property insurance .
Liability Insurance
Liability insurance is necessary when you have clients come to your house for business purposes . It protects you and your home-based business from being liable for damages caused to another person or property . Again , your homeowners ’ policy won ’ t protect you from claims made from business visitors who may have been injured at your home . For example , if someone making a business delivery to your home slips and falls , you ’ ll need liability insurance , not homeowners insurance , in order to be covered .
Professional Liability Insurance
Similar to professionals working out of their home , professionals working inside their home need professional liability insurance . If you ’ re a consultant , professional liability insurance can
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