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Home-based business insurance: An untapped market

(FAIA Member Services) Permanent link

A homemaker bakes and sells goods locally. A recent college grad designs websites for local businesses. A retired music teacher gives piano lessons.

There's an endless list of possibilities for entrepreneurs to do business from home—and all of these scenarios require insurance.

According to a recent report of U.S. businesses by The Global Entrepreneurship Monitor, 69 percent of new businesses start at home—and 59 percent of those continue to operate from home after the startup phase. That means some of your customers likely have a home business exposure you don't know about.

Many home-based business owners believe their homeowners or renters policy will cover any loss or damage to their business equipment, supplies, inventory and the like. They're wrong: Most policies exclude coverage for business exposures on the premises. As an agent, you should regularly ask each client about any home-based business exposures, then review their policies to determine if they need additional coverage.

RLI's At Home Business policy provides affordable coverage for home-based businesses, including:

  • Up to $1 million in business liability protection
  • Up to $100,000 comprehensive coverage for business personal property
  • $5,000 per person for medical payments to customers injured on premises
  • Loss of income

The product targets more than 100 retail and services risks that present minimal product liability or professional liability. Coverage also extends to business personal property that is in transit or temporarily off premises, such as when an insured sells their products at a county fair, trade show or gallery.

For more information, contact Lynn White, senior RLI account manager, at 893-4156, ext. 322; or Stacey Chester, RLI account manager, at 893-4156, ext. 349.

Independent Market Solutions adds Universal North America to list of property partners

(FAIA Member Services) Permanent link

Universal N. America LogoFAIA members looking for homeowners markets have a new option in Universal North America, a highly rated carrier whose parent company has more than 35 years of personal lines experience. The Sarasota-based insurer is open and writing statewide except for in Pasco and Hernando counties.

Universal North America is offering Homeowners and Dwelling Fire, and pays 10 percent commission on new and renewal business. Becoming a subproducer through Independent Market Solutions (IMS) has never been easier. The new application process is quick, easy, and virtually paperless.

Become a subproducer   

About IMS

FAIA created Independent Market Solutions in 2007 to help create a more robust private property market for member agents. After the punishing 2005 hurricane season, many national and regional carriers exited the state, leaving agents few options other than the state-run residual market. Today, IMS, is a separate entity, jointly owned by participating IIABA affiliated state associations. Its purpose is to:

  • Provide member agents access to markets and alternatives that may be otherwise unavailable.
  • Offer more choices for independent agents, which equates to greater competition for their services.
  • Create added marketplace leverage, particularly for smaller agents, through IMS negotiated contract terms.

Please note: FAIA Member Services’ property markets program is in the process of moving over to the IMS platform. Visit FMS online for more information about property markets.