Washington, DC — The National Association of Insurance Commissioners (NAIC), of which the DC Department of Insurance Securities and Banking (DISB) is a member, yesterday launched a comprehensive Spanish-language public education program to assist small businesses with information about business risks and insurance options. Under the banner of Insure U, the campaign includes an online education site, public service announcements and community outreach by state insurance departments.

According to a 2006 report issued by the US Census Bureau, Latino businesses grew by 31 percent between 1997 and 2002, three times the national average for all businesses.

“Small businesses are a major engine of our national economy, employing millions of Americans and generating immense economic activity,” said DISB Commissioner Thomas E. Hampton. “Latino small business owners need to understand the array of business risks they face, as well as how to protect themselves with the right insurance coverage. Insure U for Small Business en Español will help our Spanish-speaking small business owners and managers make smarter insurance decisions.”

The Insure U for Small Business curriculum, available in Spanish, includes six categories of vital information 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. After reviewing the curriculum’s helpful information, small business owners can test their knowledge using an online quiz. Upon successful completion, they can download an Insure U for Small Business en Español diploma.

Research conducted by the NAIC revealed that many small businesses—defined as those with fewer than 100 employees—are exposed to serious risks that could be mitigated by a better understanding of insurance options. Key findings of the research show:

• Only 47 percent of small businesses offer heath insurance to their employees. Of those, 24 percent report changing the fee structure, deductibles or other components in the past year to offset the rising cost of premiums.
• Only 59 percent of small businesses with fewer than 20 employees have workers’ compensation insurance, which state law requires for most companies.
• Only 35 percent of small businesses have business interruption insurance, which covers expenses such as payroll and utility bills that often continue after a major event (e.g.  a fire or storm) shuts down a company.
• Only 48 percent of small businesses carry commercial auto insurance. The others apparently rely on their employees’ personal auto insurance. However, personal auto insurance policies typically have lower liability limits and might even exclude business-related liability.
• While 71 percent of small businesses indicated they are “very dependent” on one or two key people for their success and viability, only 22 percent have key person life insurance, a type of policy that enables a business to continue operations following the death of a key employee and/or buy out that key person’s heirs if ownership rights are involved.
• Among home-based businesses, 48 percent depend on their homeowners insurance to protect their businesses. However, most homeowners insurance policies severely limit coverage of business property and might exclude business-related liability claims.

“Insure U for Small Business en Español represents a major commitment by NAIC and its members to help Latino small business owners,” Commissioner Hampton added. “It builds on the momentum of the NAIC’s highly successful Insure U consumer-education program, helping us educate and better protect additional segments of insurance consumers.” DISB had introduced Insure U for Small Business in July 2007, and Insure U in March 2006.

For more information about Insure U, consumers can visit DISB’s website at disb.dc.gov. The Insure U for Small Business en Español curriculum is available at InsureUonline.org.
 
This information was made possible by the National Association of Insurance Commissioners (NAIC). Headquartered in Kansas City, Missouri, NAIC is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five US territories. The NAIC's overriding objective is to assist state insurance regulators in protecting consumers and helping maintain the financial stability of the insurance industry by offering financial, actuarial, legal, computer, research, market conduct and economic expertise.

Formed in 1871, the NAIC is the oldest association of state officials. For more than 135 years, state-based insurance supervision has served the needs of consumers, industry and the business of insurance at-large by ensuring hands-on, frontline protection for consumers, while providing insurers the uniform platforms and coordinated systems they need to compete effectively in an ever-changing marketplace. For more consumer information visit InsureUonline.org.