Small Business in your Home?

November 30, 2018

I have to admit, I love woodworking.  I love how relaxing and challenging it can be taking something that looks plain and turning it into something cute or beautiful.  It becomes an obsession with me this time of year as I am confined more to the indoors.  I tend to give away the majority of the projects I make as gifts.  They are fun and can be personalized to meet a certain need or household piece of art.

Some of my friends have told me I should open an Etsy store and sell some of the things which I make.  I have thought about it from time to time, but what about those people who actually do have a second source of income?  Whether it be from craft projects, to making wedding cakes on the side, to selling makeup, you may have a liability exposure that you were not aware of.

Let’s take the wedding cakes as an example.  Say you get an order for a wedding cake that specifically states it cannot contain any tree nuts due to allergies.  Seems pretty simple, right?  You take every precaution necessary to ensure the cake has not a trace of a nut in it.  After it is delivered to the wedding venue, you go on about your day feeling proud of the beautiful cake you created and how the bride was so impressed by it.  Unbeknownst to you, one of the groomsmen was eating some cashews next to the cake after it was delivered.  A small piece of cashew falls into one of the sugar roses that gracefully adorns your masterpiece.  After the cake is cut and served, that slice of cake with the piece of cashew is eaten by the maid of honor, who has a nut allergy.  We can all imagine what could happen after that.  Could you be liable?  How do you afford the cost of an attorney to protect yourself when you’re struggling to make ends meet with the 2 jobs you are basically doing now?  This is just one example of how incidental business occupancy coverage can help.

Incidental business occupancy coverage is available through Erie Insurance as an endorsement added to an existing homeowner, condo owner or renters policy.  This coverage may be available to you if your secondary source of income meets certain criteria, such as occupies less than 500 square foot of space in your home and does not have a separate store front (other qualifying conditions can apply).  This coverage extends your personal liability coverage on your current home, renters, or condo policy to protect your secondary business also.  Without this endorsement, your personal home policy will not cover any liability coming from a secondary source of income.  Your business’ property can also be covered under this endorsement, under certain limitations.

So, whether you are selling makeup, cutting hair on the side, making woodworking projects, or baking cakes, protect yourself and the things you work hard for.  Call us today for more information about how we can protect your future today!


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  • Hagerty
  • Progressive
  • Phone:859.441.0310
  • 8109 Alexandria Pike
    Suite 11
    Alexandria, KY 41001