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tenant's business from rental

Hi my tenant wants to start a wine import business from our rental. She said it would have no storage and no traffic, just home office using the rental address, and she would get required license and business insurance. Right now the lease says "residential" only. What do I need to do? Do I need to ask our home insurance? Check local laws (California, Contra Costa County)? I plan to update the Lease under property use. Any recommendations for what conditions to list? Anything I should be worried about? Proprety tax? Income tax return?   Your advice would be appreciated.
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Get a lawyer. I had a tenant run an Ebay business out of one of my apartment. Some deal went down wrong and her customer came after me saying "As I provided the space, I was a partner and therefore eligible to be held financially accountable." I gave the summons to my lawyer and change the lease to forbid such activities.
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