PRODUCT: Home Business Solutions

COMPANY: The Hanover Insurance Group, Inc.

BEST RATING: A (Excellent)

AVAILABILITY: Appointed personal lines agents and brokers only.

FOCUS: Home businesses are now more popular than ever. Currently, there are 3.4 million home-based businesses with up to four employees—and 60% do not have the proper insurance, according to Census.gov. Committed to providing auto, home and supplemental property insurance coverages, The Hanover has made it easy to provide the right protection in one convenient cost-effective package.

“We were prompted to create this offering because we know that people are starting small businesses from their homes and looking for additional ways to earn an income," says Brad McCreedy, vice president of personal lines, The Hanover. “We expect the impact of COVID-19 to only increase home-based businesses. Our priority continues to be the creation of personalized solutions to respond to needs in today's marketplace."

COVERAGE DETAILS: Home Business Solutions endorsement features four coverage options, which can be chosen individually:

• Home-based business coverage: Designed for businesses located within a primary residence, with up to three employees, and regular visits from customers. Coverage includes bodily injury, property damage liability, business property, personal and advertising injury, business income protection, and more.
• Permitted incidental occupancies coverage: For sole proprietors or independent contractors with inventory in their homes to protect, with few or no visitors where business income protection is not needed or desired.
• Business pursuits coverage: For employees or independent contractors who don't need property coverage but could benefit from liability coverage.
• Home-sharing coverage: Homeowners who occasionally rent their homes for up to 60 nights per year through a home-sharing platform, such as Airbnb^® or Vrbo^™, and need protection against theft and property damage. Protects the landlord's furnishings, lost rental value and damage to the renter's belongings.

“Current professional liability coverage for business risks focuses on incidental exposures that often fall short when people look to build and expand their home-based business," McCreedy says. “Customers may need more robust coverage which allows for a limited number of employees, loss to business income, expanded limits for business property, as well as personal and advertising injury."

UNDERWRITING: Coverage applies for on-site businesses owned by the insured with no more than three employees. Underwriting will evaluate expected customer foot traffic, and The Hanover reviews each application individually.

Businesses such as accountants, actuaries, lawyers, computer consultants and small e-commerce ventures such as Etsy, eBay or Amazon stores with limited inventory, are examples of home businesses that would require the least amount of underwriting review.

TARGET: Service, office, retail and non-manufacturing, craft-type businesses with gross revenues up to $250,000.

COVERAGE TERRITORY: All U.S. states and Canada.

CONTACT: Brad McCreedy, vice president of personal lines, The Hanover.

Will Jones is IA editor-in-chief.

This article was published in the December 2020 issue of Independent Agent magazine.