The pandemic has brought forward a new understanding of business. Several homeowners have turned part of their personal space into a location to launch and run an at-home business venture. According to the U.S. Small Business Administration, roughly half of the 31 million small businesses in the U.S. are home-based businesses (HBB).
So what about growth opportunities? How did the pandemic affect the rate of small business creation? In 2020, the U.S. saw a record number of small businesses grow with 49% more businesses registered in Q3 than in Q2.
The addition of new HBBs in 2021 is exciting as it provides a clear upsell for your Homeowners' quotes. That upsell is Commercial General Liability, Business Personal Property, E&O, and other coverages for your insured's in-home business operations.
Offering commercial coverage for these businesses may prevent substantial losses for your clients. Considering that 58% of in-home businesses do not have insurance coverage, it is possible your client may be unaware of the risk that is posed by their business exposure. Your clients could be on the hook for property damage, medical payments, stolen technology, and even losses due to cybercrime. Each time you offer a Homeowners quote, be sure to ask if they have a business on-premise.
Coverage can be placed for several types of businesses. Whether your insured runs a dog grooming service or sells personal care products, most brokers can offer reliable policies for these risks. Ultimately, your clients are looking to you as a helpful resource for protecting their livelihood against unnecessary risk. Offering coverage for their HBB benefits both parties and establishes a sense of legitimacy for their exciting new venture.
Get a quote: If you're looking for coverage on an owner-occupied home, small home-based business, or both; send an Acord 80 and/or commercial application to our HBB expert: Raven Streeter | firstname.lastname@example.org | 802-661- 5434.