According to the recent CERF Business Insurance Survey, a high percentage of craft artists mistakenly believe that the structure that they work in and/or their business property is covered by their homeowner’s insurance. Unless you have negotiated for a special endorsement (rider), homeowner’s insurance normally covers only about $2500 for a home office-money intended for a desk, file cabinets and computers-but not buildings used for business purposes. CERF hears frequently from artists who have discovered this after their studios have burned to the ground. In addition, there is no coverage for business liability (yes, that includes customers visiting your studio on that annual studio tour).
Are you in business? As far as your insurance company is concerned, you are in business if you derive income from the sale of your work or services.
Read your insurance policy, talk to your insurance agent and consider purchasing a rider on your homeowner’s insurance, an “in-home business” policy or a business owner’s plan (BOP). Follow this link
for more information from CERF to help you understand business insurance.