In Insurance Industry Insights

Over half of small businesses are home-based businesses, and that number is likely to grow as the millennials start taking over. We also know that fewer millennials are buying homes, opting to live at home for longer than usual. With more millennials working out of their parent’s basement or garage, there is a bigger market for home-business insurance, and we need to take advantage.

Insurance industry insights

Parent’s don’t always realize that they need extra insurance if their millennial is starting a business from their home.

Get to millennials through their parents

Parents often don’t realize the consequences of their kids working from home. They’re just happy that they’re working and creating and taking charge of their lives. Every parent hopes that their child’s garage business will make them all millionaires. It’s the American dream. Of course, when people are reaching for the American dream, very few of them think to get business insurance, assuming that they are covered by their home insurance.

Reminding parents to get extra home business insurance for their kid’s start-up is a golden opportunity. We know that millennials are notoriously hard to reach, but a way in could be through their parents. If you have current clients with adult kids living at home, remind them about the importance of getting insurance for the home business.

The whole point of starting a business at home is to save money. With most millennials being online, there’s very little need for a physical office space. However, should something happen, like theft, an accident, or a lawsuit, the home insurance policy is not going to pay.

Growing client base for insurance agents

Millennials who are starting their small businesses from their parent’s basement need business insurance.

Over half of small businesses in the US are home-based

With over 28 million small businesses in the US and over half of them being home-based, that means we have about 14 million (give or take) clients that could be underinsured. With millennials being more independent and entrepreneurial, that number is only going to grow. Make sure you are taking advantage by reaching out to your existing clients, as well as working on marketing and social media to reach out to entrepreneurs and millennials who will want to protect their startups and their dreams.

Affordable American Insurance is a fast growing network of independent insurance agents from Colorado, Arizona, and Utah. We work together to develop and grow our agencies, sharing innovative marketing strategies and best practices, and always putting our client’s needs first.