Liberty Mutual Insurance Study Shows New Small Business Owners Are at Risk

BOSTON, Oct. 21, 2019 – Millennials may be pursuing entrepreneurship, but they take more personal liability risks than any other generation.  According to a recent study conducted by Liberty Mutual Insurance, one of the largest small business insurers, only 12 percent of Millennials who own their own business have business insurance, even though they are known for being the biggest worriers when it comes to their small business endeavors given the potential for financial loss.   

Millennial small business owners are unaware of what insurance is needed when it comes to their small business, putting them, and in some cases their employees, at risk. Many worry about the financial commitment (35 percent) compared to Boomers (29 percent), leading them to skimp on basic protection needed.

"Insurance may not be top of mind on any given day for a small-business owner – but an employee injury or data breach can happen at any time, and these incidents can really impact a small business," said Tyler Asher, President, Independent Agent Distribution at Liberty Mutual Insurance. "Not having the proper insurance could be catastrophic for a small business. Liberty Mutual aims to empower small business owners and independent agents to be prepared and protect small businesses to ensure they are financially protected." 

Key survey findings include:

  • Popularity of side hustles is growing. According to the data, more than one-third (38 percent) of Millennials are pursuing entrepreneurship with side hustles in addition to a full-time job compared to GenXers (26 percent) and Boomers (11 percent).   
  • Small Businesses are going unprotected. More than half of Millennials (54 percent) worry about their business, compared to 44 percent of GenXers and 34 percent of Boomers. In fact, more than half (54 percent) of Millennials who have a side hustle do not have insurance protection outside of their standard homeowners or renter's policy.
  • Why the lack of protection? Millennials say a lack of knowledge is the driving factor for insurance gaps. Less than half of Millennials (40 percent) said additional insurance coverages never occurred to them compared to 34 percent of GenXers and 27 percent of Boomers. Many Millennials who have side hustles do not know where to start when it comes to insurance. 

Choosing the right insurance to cover your small business can seem at times to be overwhelming as Small Business coverage spans from a Business Owner's Policy, Commercial Auto, Commercial Property, Workers Compensation, General Liability, Professional Liability, to Cyber Liability. Liberty Mutual offers the following tips to customize coverage specific to small business owners' unique needs:

  1. Proper coverage is key: Independent agents can help small business owners navigate the process by working with them on choosing the best coverage that suits their needs.  With the help of an independent agent, you can customize your coverage to be sure you are properly covered. It's even possible to add coverage to your existing homeowner's policy.
  1. Be aware of the threat to data security: More than ever, small businesses rely on computers and mobile technology to continue working. Such risks are not just to the small business itself but to customers, vendors, or other parties that might be harmed in attack. It is important to protect your business – no matter how big or small – to consider these risks and insure them properly.
  1. Professional services are vulnerable too: Small businesses are vulnerable any time customers believe that the services they've received were in error or services did not meet their expectations. Miscellaneous Professional Liability insurance can help mitigate these liability costs and even help pay for your defense in the event of disputes.  
  1. Be protected for the unexpected: It is important to consider all the costs that go into a small business, especially when disaster strikes.  In addition to insurance that can help cover property damage, Business Interruption and Equipment Breakdown can reimburse for lost profits until your business is up and running again.   

With the proper business insurance, small business owners have peace of mind and can focus on what they do best – operating a successful, profitable, and personally gratifying business now and in the future. Liberty Mutual is proud to work with independent agents and offer resources and expertise for a variety of small business needs.  For more information visit     


About Liberty Mutual Insurance

Liberty Mutual's purpose is to help people embrace today and confidently pursue tomorrow. The promise we make to our customers throughout the world is to provide protection for the unexpected, delivered with care.  In business since 1912, and headquartered in Boston, Mass., today we are the fifth largest global property and casualty insurer based on 2018 gross written premium. We are the third largest property and casualty insurer in the U.S. based on 2018 direct written premium data as reported by the National Association of Insurance Commissioners. We also rank 75th on the Fortune 100 list of largest corporations in the U.S. based on 2018 revenue. Liberty employs nearly 50,000 people in 30 countries and economies around the world. 

The sixth largest auto and home insurer in the U.S., Liberty Mutual ( sells full lines of coverage for automobile, homeowners, small commercial, valuable possessions and personal liability insurance. We are an industry leader in affinity partnerships, offering car and home insurance to employees and members of more than 15,000 companies, credit unions, professional associations and alumni groups.


Media Contact:

Glenn Greenberg

Caroline Dutcher

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