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ISO has projected there are an estimated thirty million businesses they categorize as micro, meaning zero to four employees. The Small Business Administration estimates that about 80 percent of these businesses have no employees at all and 60 percent are home based. While many of these home-based businesses are primarily operated out of the home, business activities might take place at other locations as well (e.g., shared spaces, temporary commercial locations or mobile spaces such as kiosks or food carts). For these types of businesses, physical damage coverage for building and structures is often not needed.

The new Micro-Businessowners program is tailored to these types of businesses. ISO is filing this new program with a proposed effective date of 4/1/2020. While introduced as a multistate filing, it is not at this time being filed in California, Florida, Georgia or Hawaii.

Program Overview

The program in essence will provide named perils property coverage for the personal items used in an insured's business; and liability coverage for damage to property of others or injury to others for which the insured is legally responsible to pay, as well as medical expense coverage. The specific coverage eligibility is grouped into four risk categories: Artisan Manufacturing Retail Sales, Direct Retail Sales, Online Retail Sales, and Service. The program is available for businesses falling within specific classification codes within each category.