Doing small gigs in your spare time or making money off a hobby can lead to starting a freelance business. If you don’t feel that you’re making any significant income from the activity, it may seem like you don’t need business insurance in Newark, DE. Still, if you do not tell your insurance company about business activity based at home, it could create problems when you file a claim.
Many people fear the cost of insurance for a home-based business will be high, but basic add-on coverage can sometimes be just a few dollars more a month. Here are some basics about business insurance.
Does Home Insurance Cover Freelance Work?
Most basic homeowner policies cover a minimum amount of business property at home. In most cases, it is very limited. Homeowners’ policies cover personal liability, but business insurance separate from home insurance policies. The only way for you to know if a home insurance policy covers you for doing part-time work from home or freelance work is to speak with your licensed insurance representative.
When to Tell Your Home Insurer About Freelance Work at Home
All insurance, whether home or business insurance, relies on full disclosure. Make sure to let your insurance company know anytime you are working from home or running a side job. In most cases, if you are doing a minimal amount of work or not making a significant income, then your insurance company will likely take note of your declarations and may not have to adjust your policy. In some cases, your policy may have limitations that require an endorsement or amendment.