The insurer targeting members of the military and veterans, USAA, is set to begin writing its own small business insurance policies for the first time.
The company will initially offer coverage in five states: Arizona, Colorado, Illinois, South Carolina and Tennessee. Plans call for a continued rollout to other states through 2021.
The insurer – which serves policyholders or members currently in the U.S. military, military veterans, and their families – has offered small business insurance to non-affiliated companies through its USAA Insurance Agency for 30 years. This is the first time that USAA has offered its own product, a move it believes is based on increased member demand.
The new small business insurance is underwritten by San Antonio subsidiary Garrison Property & Casualty Insurance Company.
"For small business owners, their business is their life and livelihood," said Jim Syring, retired vice admiral, United States Navy and USAA & # 39; s Property and Casualty president, in prepared remarks. “They put their heart into building their business and work around the clock to make it a success. We believe we understand veterans better than anyone else and we want to be there to support them and their business every step of the way. "
The market for small businesses dealing with military veterans is vast. There are 2.4 million veteran-owned small businesses and they employ 5.8 million people, according to statistics of the US Small Business Administration. These businesses cover a variety of industries including finance and insurance, transportation and storage, mining, construction, manufacturing, wholesale, real estate, utilities, agriculture and forestry.
USAA said the new coverage will be able to "protect small business owners of virtually any size, industry, and virtually any state." The insurer said it can serve businesses of all sizes through the USAA Insurance Agency, but the "manufactured product" is currently targeting businesses with less than $ 500,000 in annual revenue.
USAA said it will expand its offering to meet the evolving needs of members.
Initially, USAA will market a policy product for business owners with basic, standard and premium levels of coverage. Elements of coverage include corporate liability, corporate personal property, corporate income, cyber, computer fraud, terrorism, hired and non-owned cars, and working conditions liability.
Workers' compensation coverage is offered through USAA's agency partners.
USAA will sell its small business products and its ongoing agency offerings both digitally and through member service representatives.
USAA Insurance Agency will continue to offer corporate insurance products underwritten by outside insurers. USAA or its subsidiaries are not involved in the underwriting, but the agency will receive a commission on the sale or renewal of these products, as well as a potential performance-based compensation, the company said.
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