Will my homeowners cover liability for small businesses?
Will my homeowner, auto, & umbrella policies cover liability for a small business in my home that sells through internet & craft shows? My wife makes doll dresses in home. They are sold on an internet craft website (Etsy) and at area craft shows, festivals etc. Inventory at retail is about $3000 to $4000 normally cost less than a $1000. The gross annual sales generally range from $1000 o $1500. The business does not make a profit. In business 4 years and a loss every year. We attend about 10 to 15 shows a year and drive one of our personal vehicles. If we had an accident going to or from a show would my auto insurance cover us? Also, if there was a liability issue with a product or our sales booth would my homeowners ins. cover us?
Your homeowner's policy will not cover anything involved with the business unless you have a specific endorsement on the policy for an in-home business. You will want to check with your agent for your policy specifics. As far as your auto insurance, your policy should cover you to drive to and from craft shows but the contents would not be covered under the auto insurance policy. Good luck and if you have any other questions, don't hesitate to ask.