BUSINESS INSURANCE BULLETIN
ForthQuarter 1999
Many entrepreneurs have been successful in building in-home businesses, but face losses because they are not properly insured. According to the Independent insurance Agents of America (IIAA), many don't even realize they don't have necessary coverage to protect their business from theft, physical damage or other expensive losses.
In a new study, IIAA found that at least 60 percent of in-home business are not properly insured, with those in the 55 to 64 age group the most vulnerable. In addition, those in that age group who are insured are still less protected.
The study shows that women are slightly more insurance savvy than their male counterparts, but are still exposed to high levels of risk.
Of the home-based business owners without proper coverage, almost half didn't buy business insurance because they thought it was covered under some other type of policy and very few indicated that money was a factor in their decision to forgo the coverage.
The U. S. Bureau of labor Statistics estimate there are more than 18.3 million home based businesses in the United States. The Small Business Administration estimates that 300,000 women start in home businesses each year, and the IIAA study estimates that in just a few short months, as many as three in 10 Americans will be operating a home-based business.
A comprehensive commercial policy can cost as little as $150 a year. For information on protecting tour home-based business from devastating losses, please call your agency.
