If you are like many small contractors you keep your tools in your garage, or in a trailer parked at your home, or in the shed out back. You may even do some of the work in your garage or workshop.
If your home is used for any business activities your first concern is to make sure your home insurer is aware that this is the case. Not telling your home insurer about your business activities can jeopardise your insurance on your home.
It really does not matter if you are part time or full time. It does not matter if you have a tradesman ticket or not. If you earn money from your trade, the tools used in that trade are excluded from coverage under your home insurance. Some policies cover some of these tools (about $2000 or higher) but only while they are on your premises. By not having a contractors insurance policy you are essentially deciding not to insured your tools regardless of where they are.
If you look at an application for home insurance there is a question on the application which asks if there are any business activities on the premises. If that question is not answered truthfully the insurance company could potentially refuse to pay any claim, even if it was not related to your business activities. It may not even be your fault. The question could have been overlooked by your home insurance adviser.
In other words, the insurance company is insisting they be allowed to decide if such business activities are increasing the risk of loss. This allows them to either allow the business use without an additional premium or charge an additional premium.
If your home insurer would not insure you if they knew about your business activities then you are going to be in real trouble when you go to claim. If your home insurer is going to refuse coverage because of your business activities it is far better to know before you have a claim. This gives you the chance to secure coverage from an insurer that will give permission.
If your home insurer would not insure you if they knew about your business activities then you are going to be in real trouble when you go to claim. If your home insurer is going to refuse coverage because of your business activities it is far better to know before you have a claim. This gives you the chance to secure coverage from an insurer that will give permission.
This warning still applies even if you have a contractors insurance policy. Your home insurance is a separate matter. The fact that you have a contractors policy makes it much easier to get approval without any additional cost.
Correct it as soon as possible if you find that permission for business activities has not been granted.
Not sure? Give us a call. We can help. 306-821-1620.
Correct it as soon as possible if you find that permission for business activities has not been granted.
Not sure? Give us a call. We can help. 306-821-1620.
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