Originally Posted by ziggytarheel
I would love for a very in-the-know insurance agent (or an underwriter or very experienced claims adjuster) to chime in. I would think that if it was indisputable that you were not in business and were truly a hobbyist who took no compensation, that in case of a lawsuit, your homeowner's insurance would kick in. However, if there is even a hint that you do this as a business, using whatever definition that would fit legally, your homeowner's insurance would specifically exclude coverage. Certainly if you serve food in your home to your guests for no charge, there would be coverage.
Yes! Regardless of the "don't worry about the insurance" theme in other posts, I'd also be interested in hearing from someone who works in the insurance field and knows what they're talking about
. It was my understanding that if you use your car for deliveries you have to insure it as a business vehicle (or so my insurance agent told me) so why not your home as well? And it wouldn't be just cake-related injuries that would be the issue, would it? If someone was at your home to pick something up and fell off your porch, would that be covered under homeowners if the insurer found out that they were there for "business" purposes, or would that be an issue? Just asking...Oh, wait, I already did my research for MY situation and asked my insurance agent. (although I'd still like to see if anyone else has experience with the same thing to see if I should have MORE coverage!)
The problem with this kind of thread is that people will pick and choose the advice that OTHER people have received from their local authorities, even if it's not relevant to their situation. Just the same way that people will get three different answers from three different HD employees when you ask them the same question, but this is on a larger scale. If I may speak for the other business owners on here who have posted about doing things by the book, I think that what we're warning against is the tendency to believe what you want to believe.
If you're trying to set up a business, find out everything that you can from your local Health Department, not from CC. It's helpful to post on here to see where to start, but if you want to do this legally you'll have to go with your own state's laws. Don't assume that you can go to the internet for answers and keep looking until you find someone who will tell you that you can do what you wanted to do in the first place.