Small business insurance?

Question

Do I need to get small business insurance for a quilting business in my home that would have from 4 to 6 people entering my home weekly to get their quilt tops quilted? My state is Nevada. No one would be using my quilting machine. I was quoted $225 per year minimum coverage for 300K liability and 600K for the other coverage plus coverage on my machine for theft or damage. The machine costs 6K . Wouldn't my homeowners policy cover me, given these circumstances?

Answer 1

I am not a P&C specialist, however, I believe most HO policies have an exclusion for a home business. In any case, you really should have at least minimum coverage for an operation of this size.

You've got people and capital on a worksite; that's a lot that can happen, ie. fire, falls, accidents, E&O, etc.

My HO policy paid me $17k for a pipe break. We would have been up a creek without it. $225 is REALLY cheap for peace of mind and being responsible with your home and financial future.

Answer 2

Business liability is specifically excluded on a homeowners policy.  So, if you have a client come to your house & they get hurt & sue you, you will have to pay any court award, your homeowners policy will deny coverage.  Also, most homeowners policies give about $2500 on premises business contents (your contents, not others contents).  Anything that is used in the course of your business, even once in a while will fall under this category.

Is this business in the house or a detached structure?  If it is in a detached structure, your homeowners policy will specifically exclude the structure unless you list it as a business structure and pay an additional premium.

So, get the business policy (most small business policies have 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 machine in the course of your business (add your desk, chair, phone, computer if you use it in business, regular sewing machine, material, thread, bobbins, scissors, etc)