Personal insurance typically excludes ANY business conducted at your residence. This means ALL business. What is a business? Black’s Law Dictionary defines “business” as “…that which occupied time, attention, and labor…for the purpose of livelihood or profit.”
In our conversations with clients, we find that many people do not consider their endeavors to be business. AVON, Basket sales, and collecting rents or signing leases in your home are all businesses by definition.
Frees Insurance has contacted all of our clients who have rental properties and requested that they contact us to review whether they are collecting rents at their homes or signing leases at their homes. If they do, there is a small change that can be made to extend the liability protection in the event a tenant gets hurt while on the residence premises.
Make sure that your insurance does what you need it to do when you need it to do it. Call your insurance professional to discuss this further. Need an insurance professional? Call us.