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By Chuck Wells

A common misconception is that if you are running some type of business from your home and don’t make much money, or even lose money, you don’t have to worry about insurance. That is
not true.

Your home insurance policy is set up to protect you against lawsuits when someone says they were injured by your negligence. It will not protect you if you charge even $1. for a service. That is a business and your standard home insurance does not cover any business activity.

So what kind of businesses are being run out of our homes which are not covered by our home insurance? Daycare (an occasional babysitting job by a teen is ok), hairdresser, dog kennel, car or lawnmower repair, an office (especially where customers come to the home), and perpetual yard sales.

How can you avoid problems? Call your insurance agent and see if a rider can be added to your home insurance policy to cover your in-home business activities. If not, you may have to get a new business policy. If you don’t make much money off your business and it is not worth paying for this extra insurance, you may have to discontinue the business rather than taking a chance of someone suing you. Keep in mind that you do not have to do anything wrong to be sued in today’s society and it could cost you a fortune just to defend yourself.


As you know, tobacco companies were sued by lawyers who were concerned about our health and welfare. They thought that we did not understand how bad cigarettes were for our health so they wanted to punish the manufacturers and get some money to us for our trouble. They were doing this out of the kindness of their hearts.

One of the lawyers from Texas involved in the lawsuits against tobacco companies bought a $4 million jet along with his partners with his winnings.

Another lawyer in Mississippi bought a $192,000 Bentley automobile.

And a lawyer in South Carolina used his fees from the tobacco settlement to buy a 74 foot Hatteras yacht worth $2 million.

Do you feel better now?


West Virginia says it has a serious problem with road kill and wants to change its law. It seems that if you hit some animal in West Virginia, you can’t take it home and eat it unless you notify authorities first and get their permission. This could take hours and by then the road kill is spoiled (really). So they are proposing “meals on wheels” legislation that will allow you to scoop up that morsel and take it home with you for dinner tonight.

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