So you like taking pictures. You invest time in learning the ins and outs of metering and proper white balance. You invest some money in gear. People start noticing. You take some pictures for your cousin Lou. Then for your 2nd cousin’s friend Jean. Then for…………… You have a full time job. This is just for fun.
Hobby or Business?
You love working with your hands. Building and remodeling your house is enjoyable and relaxing. You help your Uncle Joe build a deck. Then you’re building a deck for your 3rd cousin’s teacher’s friend.
Hobby or Business?
There are laws that decide how much money you can make before a hobby turns into a business for tax purposes. But my opinion does not change regardless of what the IRS says. As soon as you start accepting compensation (yes, even that case of beer counts), you need insurance.
READ MORE: The Naked Truth About Home Business Insurance
Let’s Talk What Ifs
What if that deck collapses? On someone and breaks their leg.
What if while painting that room you accidently paint the carpet? And the new couch.
What if that cake you baked makes someone sick?
You may not be negligent in any of the above cases, but if you are sued, you will need someone to defend you. Insurance can help with that.
The things you own for your hobby can also get expensive fast. Did you know most homeowners policies exclude items that are used in a business (i.e. used to make money). Would you be able to replace all of your “tools” if necessary?
Whether you need a standalone policy or a home based business endorsement added to your existing homeowners policy will vary by what and how much you are doing. Contact an insurance professional today (or you know… us!) to discuss your hobby or business.
Protect yourself and your stuff.
Photo credit: Kat with Camera, at home, January 2013 via photopin (license)
