Getting Insurance When Your Hobby Becomes a Business
No matter how small your new business, it's critical to have the right protection.
As we approach the one-year mark of living in a world greatly impacted by the coronavirus pandemic, there’s little doubt that everyone has been affected at some level.
For some, the impact has been a lost job and a reliance on finding supplemental sources of income. In such cases it hasn’t been uncommon for hobbies to be leveraged as new sources of income. Knitting, crafting, photography or any number of other hobbies once viewed as leisure-time activities have become the livelihoods for many.
Whether one’s hobbies are being leveraged to pay the bills or to simply pass time, it’s important to consider how financial and material investments in such activity can be protected. At what point does a hobby or side hustle become a business, and what does that distinction mean for insurance needs?
At West Bend, a business is defined as “a trade, profession or occupation engaged in full-time, part-time or on an occasional basis, or any other activity engaged in for money or other compensation.”
To put it in simpler terms, when one’s annual income from a particular endeavor exceeds $2,000, West Bend’s standard homeowners policy no longer provides coverage, and the “hobby” is categorized as a business activity, which creates a need for business insurance.
Getting The Right Insurance
Securing the right coverage for a business is crucial, and while it may seem intimidating, there are a number of options available that make it easy to tailor coverage to specific needs.
West Bend’s SMARTBusiness® offers a number of optional retail insurance coverages in addition to a number of essential standard coverages, so one can determine the best insurance fit for any budding business. Some hobbies-turned-hustles, like photography, may require expensive equipment, and business insurance can offer peace of mind by protecting property with specifically designed products and services.
With West Bend, small business owners at home may even have the option to receive coverage from their homeowners policy. If a business is classified as a crafts, service, or office or sales venture, it may be eligible for coverage under a West Bend homeowners policy, making behind-the-scenes business needs as simple as possible so creators, innovators and entrepreneurs can focus on what they do best.
Even if a hobby remains just a hobby, it’s important to make sure the current homeowner, condo or renter’s policy provides coverage for any related equipment in the home. Learn more about West Bend’s homeowner policy at thesilverlining.com.
In these uncertain times, it’s critical to have the right protection not only for one’s home and personal property, but also for new business ventures. Learn more about business insurance at the West Bend Cares Blog.