If you earn money through a hobby compared to a business (photography) i would like to know since its classed as a hobby do you need business insurance? I know if you operate as a business and have a studio setup at home then you should have business insurance to cover for public liability. However if you operate under a hobby then would your normal home/contents public liability cover for any incidents that may happen?
Hobby Vs Business Insurance Wise
jarrod63 on 25/01/2016 - 16:53
Comments
The question is actually on behalf of my parnter but she does newborn/child photography. So i guess there is always the risk that a newborn or child is injured in the studio.
You'd be nuts not to have public liability insurance for this. All you need is a toddler to accidentally trip/tug/spill etc and a flash/background stand/gear bag/electronic equipment could cause an injury. It's actually pretty cheap too in the grand scheme of things.
AIPP refer people to http://www.photoinsurance.com.au/
Is there such a thing as personal liability insurance for hobbies? Wouldnt it all cost the same?
Well your house/contents insurance includes public liability. However if you are a business you need separate public liability. So im wondering if a hobby would fall under normal house/contents public liability or would be under business insurance
If you have a party and someone injures themselves it will be covered under your house and contents public liabilty. So i am wondering if you are operating under a hobby does that hobby fall under the same category
Interesting. Didn't know that. I suppose you would need to see the specific house contents insurance's 'definition of bussiness/hobby
You should revert to your PDS in respect of your home contents insurance.
To be honest, insurance companies are all scum and will do anything to avoid paying out on a claim if they get a whiff of an exception applying — ie, get the business insurance unless the home contents PDS is clear that it covers it.
Check your insurance PDS and/or contact your insurer and ask the question. This is not something to refer to the opinions of people on the internet. Get it in black and white from the insurer directly.
Check with your insurer. I'd say to still get public liability insurance separately - it's not that pricey at all (mine was sub $400/yr) for the peace of mind you'd gain instead!
Also, perhaps check if your industry (photography) has any partnerships or affiliations with certain insurers for good deals.
The number one job of an insurance company is to avoid paying out on claims.
Regardless of whether you're carrying out an activity that may be a hobby for tax purposes, an insurance company will likely consider that if you're doing work for money, that you are conducting a business as far as they are concerned.
What kind of hobby photographic activities are you carrying out that you think might cause an insurance liability to arise?