During the current economic slow-down (I’m being polite), there have been an unprecedented number of newly-unemployed people. I would imagine that many will start their own businesses rather than re-enter the job market. For those who make on their own, many will base their businesses in home offices.
Even prior to our current economic scene, the U.S. Bureau of Labor Statistics estimates that there are more than 18.3 million home-based businesses in the United States. There are as many as 43 million Americans running these entrepreneurial entities which range from business services to daycare to plumbing. With increasing independence due to technology and growing income and tax benefits, The Home Based Business Report estimates that three in ten businesses are home based.
It’s a good thing, then, that disability insurers are finally recognizing the need this market segment has for disability insurance. Up until recently, restrictions placed on these types of business made it difficult for home-based business owners to purchase this much-needed insurance. Some of the insurance companies will now even recognize past income as an employee in determining the benefit amounts for these newly self-employed people.