The Current Home Based Business Marketplace

// September 3, 2020
Reading Time: 3 minutes

Woman doing yoga virtually

Over the past few months, the global pandemic has impacted countless businesses, both big and small, and individuals nationwide. The consumer market has certainly shifted as people everywhere learn to settle into the “new normal”: digital communication, increased remote operations, a preference for online shopping over brick-and-mortar stores, higher demand for hygiene and cleaning products, and a shock to brand loyalty (consumers settling for whatever is available). For businesses, there have been more layoffs and remote-work operations than ever before (McKinsey & Company).

This shift in the consumer market, along with more layoffs and people “quarantining” within their homes, has led to a unique trend: the rise of home-based businesses. Whether it is a full-time career or a hobby to earn extra income, there are more individuals running a business from their home than ever before.

Consider the following trends in consumer interest published in a recent CNBC article:

  • Home beauty and wellness products have experienced 36% growth in consumer interest; this is a trend that will impact the beauty industry permanently
  • Video games and board games have experienced a 145% growth in consumer interest; gaming companies cannot make enough games to meet the demand
  • The fitness and health industries have experienced a 2,000,000% growth in consumer interest

Now consider the following examples of home-based businesses that have been on the rise to tap into this demand:

  • Direct sales consultants who sell home beauty products, like Arbonne, NuSkin, Rodan + Fields, Mary Kay, Younique and SeneGence
  • Direct sales consultants who sell wellness products, like Herbalife, Amway, doTERRA and Young Living
  • Sellers of food supplements or vitamins
  • Game/Puzzle vendors
  • Crafters who sell on sites like
  • Sellers of cleaning supplies and household products
  • Personal fitness trainers
  • Sellers of beauty supplies, like at-home hair cutting tools

According to Fundera, as of December 2019, about 50% of U.S. businesses were home-based businesses. With how 2020 is trending, the year will end with a significantly higher percentage, and it is likely that this will impact the insurance industry as well. These small home-based businesses, such as personal fitness trainers, crafters, puzzle vendors and more, will need to be properly insured just like bigger brick-and-mortar stores.

USLI’s Home Based Business product can be the solution to ensure proper coverage in the event of a loss for these types of risks. This product can include up to $1 million in liability coverage, up to $100,000 in business personal property coverage, $25,000 of errors and omissions coverage for most classes and more.

To learn more about our product, get marketing help with promoting this product or receive a quote today, please contact your Personal Lines underwriter.


Matt McShane HeadshotContact Matt McShane
Home Based Business Product Team Leader | 888-523-5545, ext. 2142

Lisa Spitko HeadshotWritten by Lisa Spitko
September 3, 2020