Certain Businesses Are Moving Home. Are They Adequately Covered?
According to Incfile.com, about 50% — or 15 million — of U.S. businesses are home-based, and that number will certainly continue to grow. The past year has shown many Americans that it’s feasible to move their businesses into their primary homes. Many businesses operating with fewer than three employees see this move as an opportunity to cut expenses, which will keep them running smoothly and potentially provide them with a way to scale their operations.
Aside from current small business owners, hopeful entrepreneurs recognize now is the time to take a leap of faith, as starting a business may not require as much capital. According to Fundera, 44% of home-based business owners pay $5,000 or less to start their business, but by saving on costs like office space rent and expensive insurance premiums, individuals are more incentivized in 2021 to begin the journey of working for themselves from home. In fact, census data shows that 57.1% of home-based businesses bring in less than $25,000 in revenue. This is another reason why lower insurance premiums are in demand, and home-based business premiums meet the criteria.
Consider the following classes of business that are moving in-home:
- Teachers/Tutors: To avoid a larger setting, many teachers and tutors are now offering one-on-one or even Zoom classes/tutorials in a home setting.
- Fitness instructors: Gym restrictions and closures created an opportunity for instructors to instruct classes at home to retain/grow their businesses (CNBC New Businesses)
- Professional organizers: This is a class of business that has seen growth the past 12 months, where the need for an office space is now not as apparent
- Beauticians: Like fitness instructors, these professionals have seen an opportunity to retain their client base while working from home
- Jewelers/Crafters: Many of these stores were forced to close due to COVID-19 but have since realized a way to operate efficiently from home (SHRM)
USLI’s Home Based Business product can be the solution to ensure proper coverage in the event of a loss for these 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. Our policy provides all the coverages of a normal business owners policy — but at a much more affordable premium.
We can help you capitalize on this opportunity! Take advantage of the various customizable Home Based Business product marketing materials within our Customer Toolkit. We write over 140 home-based professions, and our free marketing materials highlight the classes mentioned above and many more.
To learn more about our product, please visit USLI.com/HBB or contact your Personal Lines underwriter today.
As always, thank you for your support and business.
Contact Matt McShane
Second Vice President, Senior Underwriter | 888-523-5545, ext. 2142
Written by Cory Bennett
June 3, 2021