Skip First Level Navigation | Skip All Navigation

Site Map   Search INS

Augusta, Maine -

Maine’s Bureau of Insurance announced today that the National Association of Insurance Commissioners (NAIC) has launched a comprehensive public education program to provide small businesses with information about business risks and insurance options. The campaign, Insure U for Small Business, includes an online education site at www.insureUonline.org/smallbusiness.

The Insure U for Small Business program includes six categories of information vital to small businesses: workers’ compensation; group health and disability; business property and liability; commercial auto; group life and key person life; and home-based business insurance.

“Small businesses are a major force in both the national and local economies, providing employment and generating economic activity,” said Eric Cioppa, Maine’s Acting Insurance Superintendent. “Small business owners should understand the various business risks they face, as well as how to protect themselves with the right insurance coverage. Insure U for Small Business is one tool that can help small business owners make informed insurance decisions for their particular situation.”

National research conducted by the NAIC in March revealed that many small businesses -- defined as those with fewer than 100 employees -- are exposed to serious risks that could be decreased by a clearer understanding of insurance options. Some key findings of the research show that nationally:

• Only 35 percent of small businesses have business interruption insurance, to cover expenses like payroll and utility bills that often continue after a major event (e.g., a fire, flood, or storm) shuts down a company.
• Only 48 percent of small businesses carry commercial auto insurance. Although the others may rely on personal auto insurance for coverage, these policies typically have lower liability limits and may even exclude business-related liability.
• Among home-based businesses, 48 percent depend on their homeowners insurance to protect their businesses. However, most homeowner insurance policies severely limit coverage of business property and may totally exclude business-related liability claims.

“Insure U for Small Business represents a major commitment by the NAIC and its members to help small business owners,” added Acting Superintendent Cioppa. “Given the variety and complexity of insurance products available, it is important to provide small businesses with tools to assess their insurance needs.”

The Bureau of Insurance is part of the Department of Professional and Financial Regulation which encourages sound ethical business practices through high quality, impartial and efficient regulation of insurers, financial institutions, creditors, investment providers, and numerous professions and occupations for the purpose of protecting the citizens of Maine. Consumers can reach the Bureau through its web site at www.maine.gov/insurance; by calling 800-300-5000 in state; or by writing to Bureau of Insurance, 34 State House Station, Augusta ME 04333.

###

Last Updated: April 7, 2009 2:37 PM