We have a policyholder who earns about $50 per month ($600 yearly) doing manicures and pedicures for friends and family, which she states covers only the cost of the supplies used. This is not reported as business income on her taxes. The policyholder sustained a loss in which her nail supplies, cleaners, polishes, and other supplies were damaged or destroyed. She is seeking coverage under her HO 3 policy.

However, the NC HO 3 policy defines "business" as any full-time or part-time activity of any kind engaged in for economic gain, including the use of any part of any premises for such purposes. There is no minimum threshold under the NC HO 3 policy (i.e. policy does not require the earnings to exceed a set figure such as $2000 as seen in policies from other states).

Would the nail care supplies in this instance be considered business property and thus, be subject to the business property limits of the policy?