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Hobby or Business?

Is there a business in your home? The answer may surprise you. What you might consider a hobby or a convenience may actually be considered a business by an insurance company - or a court of law. Questions relating to home businesses have often been the source of litigation. And as a result of such litigation, courts have identified the following criteria to establish the existence of a business: continuity and potential for profit.

  1. Do you have a home office? Telecommute?
  2. Do you distribute Avon, Mary Kaye, Tupperware, or other products?
  3. Do you babysit regularly in your home? Deliver newspapers?
  4. Do you breed dogs? Sell puppies?
  5. Do you make clothes or crafts and sell them for a profit?
  6. Do you sell Christmas trees from your land? Have a fruit stand on your property?
  7. Do you rent spare bedrooms to roomers?

If you answered "yes" to any of the above questions, there may be a home business exposure that's not covered by your current homeowner's insurance policy. Call your agent at Avery Insurance to make sure your "hobby" has not, in fact, become a business.