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Insurance on the side? Who needs it?

Posted On: Oct. 2, 2018 12:19 PM CST

Insurance on the side? Who needs it?

Only 12% of Americans with side businesses have purchased insurance for their part-time enterprises, according to survey results released in late September by The Hartford Financial Services Group Inc.

The Hartford, Connecticut-based company surveyed 4,135 Americans in May, finding that 25% of them own small businesses outside of full-time employment or retirement. The reason 88% of them feel insurance is optional?  

Most (44%) said they don’t think they need it. Other reasons include “my business is too small to warrant buying insurance” (18%) and “I am protected by my current home or auto insurance” (11%), according to the survey results.

Naturally, one of the country’s largest insurers thinks this highlights a need.

“Small businesses of all sizes play a vital role in the American economy and within our local communities,” Stephanie Bush, The Hartford’s head of small commercial and personal lines, said in a statement. “We were somewhat surprised to see how many Americans are operating side businesses largely to generate extra income, yet most are uninsured. These survey results highlight the need to ensure that small business owners have access to resources to understand when insurance protection makes economic sense.”