From Workers’ Comp to Retirement: Why Local Insurance Market Changes Matter to Older Home-Based Business Owners

Why a workers’ comp carrier moving into your state should matter to retiree entrepreneurs

Hook: If you’re running a small, home-based business as a retiree—selling crafts online, doing consulting, or hiring a neighbor or grandchild—you may think insurance is a low-priority chore. But recent moves by commercial carriers, most notably Stonetrust’s January 2026 expansion into North and South Carolina, show how local insurance-market shifts can directly change your costs, coverage options, and legal exposure.

The bottom line first (inverted pyramid)

Stonetrust’s geographic expansion and similar moves by program underwriters such as Amwins mean two things for older home-based business owners in 2026: more options—and more paperwork and decisions. That can translate to lower premiums and better-tailored workers’ compensation and employer-liability policies, but only if you know what to ask, how to classify family workers, and how to shop.

What happened in early 2026 — and why it matters

In January 2026, Stonetrust Commercial Insurance announced it would begin writing workers’ compensation and employers' liability in South Carolina, adding to its recent expansion into North Carolina and bringing its footprint to 14 states. Insurance Journal reported the filings and the company’s agent-appointment plans. At the same time, wholesale distributors and program underwriters such as Amwins continued to broaden niche offerings—another sign carriers are retooling distribution and appetite after 2024–25 market adjustments.

Why that matters to retirees:

• New carriers increase capacity and competition—potentially lowering premiums for small employers who previously had limited choices.
• Program-based underwriting (via wholesalers) often creates specialized products that better fit home-based businesses and informal employer-employee relationships.
• But new entrants also bring changing underwriting standards, appointment processes for agents, and variable claims practices—so coverage details can vary widely state-by-state.

"More carriers entering state markets can mean better options—and new complexity. For retiree entrepreneurs, that complexity affects both cost and legal protection."

How workers’ compensation and employer liability affect home-based retiree businesses

Many retirees underestimate how workers' compensation and employer-liability rules apply to small, home-based operations. Here are the key exposures:

• Employee injuries: If you employ anyone—even a relative—you may be required to carry workers' compensation in your state. A single workplace injury can lead to medical bills and lost-wage claims that workers’ comp typically covers.
• Employer liability: Beyond medical payments, employers can face lawsuits for negligence, wrongful termination, or discrimination; employer-liability components of a workers’ comp policy—and umbrella cover—matter.
• Home liability exposure: Running a business from your home raises questions about whether your homeowner’s policy still covers customers coming to your house, equipment loss, or a delivery driver’s injury.
• Classification and payroll audits: Insurers price workers’ comp based on payroll and class codes. Misclassification or inaccurate payroll reporting can cost you at audit time.

Example: Margaret’s Etsy shop—what changed when a carrier expanded into her state

Margaret, 68, runs an Etsy-based handmade jewelry business from her Charleston, SC home. She occasionally hires her 20-year-old grandson to help with shipping and packaging and declared him as a W-2 employee. Before 2026, Margaret paid into a state assigned-risk pool and had a costly umbrella policy because private-market options were limited.

When Stonetrust and other program markets expanded into South Carolina in early 2026, Margaret’s independent agent shopped her account and found a Stonetrust workers’ comp offering with tailored endorsements for micro-employers and a lower premium—because the program accepted small payrolls and offered favorable class codes for her activity. The agent also negotiated an endorsement clarifying family-member employment coverage.

Result: Margaret reduced annual insurance costs, clarified obligations for her grandson, and gained easier claims handling—without sacrificing necessary protection.

Key 2026 trends that influence premium and availability

Understanding these trends helps retiree entrepreneurs predict changes:

• Geographic expansion of regional carriers: Companies like Stonetrust adding states increases market capacity for workers' comp, which helps niche small employers find better fits.
• Growth of program underwriting and wholesalers: Firms like Amwins are packaging specialty products that address risks for small, non-traditional employers (home-based, seasonal, family-run).
• Data-driven underwriting: Carriers increasingly use analytics to price small risks—good safety practices and digital records can lower premiums.
• Regulatory shifts: States continue updating coverage mandates for gig work and domestic/family employment post-2024, so what was exempt two years ago may now require coverage.

Practical checklist: What every retiree running a home business should do now

Use this checklist to turn market changes into an advantage.

1. Audit your workforce: Make a definitive list of people who work for you, hours, pay, and whether they are W-2 employees or 1099 contractors. Family members are not automatically exempt—document roles and payroll.
2. Verify state requirements: Workers’ comp rules differ by state. Check your state’s department of insurance and labor websites or ask an independent agent whether you meet any threshold for mandatory coverage.
3. Talk to an independent agent: Agents with multiple carrier appointments can shop new entrants like Stonetrust and program markets to find the best match for a home-based business.
4. Ask specific questions about family employees: Get written clarification on whether spouse, children, or other relatives are covered or excluded, and what paperwork is needed.
5. Classify your payroll correctly: Small changes in class codes can shift premiums significantly. If your work involves custom jewelry, light manufacturing, or contracting, confirm the right class code.
6. Invest in simple safety measures: Documented safety protocols, ergonomic workstations, and training can lower loss frequency and improve underwriting outcomes.
7. Compare total cost of ownership: Look beyond premium—consider deductibles, audit practices, claim service, and employer-liability limits.
8. Keep accurate payroll records: Insurers audit payroll. Clear records prevent surprises and support small-business-friendly rates.
9. Consider a Business Owner’s Policy (BOP): For many home-based businesses, a BOP bundles property and liability coverage and can complement workers’ comp.
10. Plan for growth: If you expect to hire more family members or employees, ask carriers about scaling options and multi-policy discounts.

Questions to ask an agent when shopping new carriers like Stonetrust

Bring this list to your next insurance conversation:

• Is this carrier licensed and admitted in my state?
• What are the carrier’s financial-strength ratings (A.M. Best, S&P)?
• Are there tailored endorsements for micro-employers or family employees?
• How does the carrier handle audits and payroll reporting?
• What is the claims process and average timeliness for this carrier?
• Does the carrier offer loss-prevention resources that could lower my mod or premium?
• How will hiring family members affect premium and coverage?

Employer liability nuances retirees often miss

Workers’ comp typically limits lawsuit exposure by providing no-fault benefits. However:

• Third-party liability: If a customer is injured due to your negligence (e.g., tripping at your home studio), a general liability policy may respond. Employer-liability becomes crucial if an injured worker sues for negligence outside workers’ comp protections.
• Independent contractor pitfalls: Misclassifying workers as contractors to avoid workers’ comp can backfire. States scrutinize true employment relationships—control, hours, equipment, and payroll all matter.
• Umbrella/Excess coverage: For small businesses with personal assets at stake, an umbrella policy can add a layer of protection beyond primary policies.

How to use market changes to your advantage—concrete strategies

Here are actionable strategies tailored to 2026 market dynamics:

• Leverage competition: Have your agent get quotes from both established carriers and program markets that have just entered your state. New entrants often price aggressively to build account share.
• Bundle policies: Combining a BOP, workers’ comp, and umbrella through the same carrier or program can yield savings and simplify claims handling.
• Request industry-appropriate class codes: Program underwriters often create class codes for niche businesses (e.g., online artisan sellers, micro-manufacturers). Ask if there’s a better fit than a generic retail classification.
• Document family employment: Keep signed offer letters, time logs, and payroll records for relatives. This removes ambiguity at audit and claim time.
• Consider captive or group options if you scale: If several retirees in your community run similar businesses, look into group-buy programs or small captives—markets like Stonetrust have roots in self-insurance and program business.

Red flags—when to be cautious with new carriers or program offers

Not all new market entrants will be right for you. Watch for:

• Poor financial ratings or limited local claims presence.
• Contracts that penalize policy cancellations with massive fees.
• Opaque endorsements that exclude family members or certain types of work without clear notice.
• Agents or wholesalers that push “quick” filings without explaining audit or payroll procedures.

Regulatory updates to watch in 2026

Two regulatory trends are especially relevant:

• State-by-state adjustments for gig and home work: Several states revised definitions of employee vs. contractor in 2024–2025. Watch local guidance in 2026—what’s exempt in one state may require coverage in another.
• Increased oversight of program markets: As wholesalers like Amwins build more niche programs, some state regulators have increased filing reviews. That can affect the speed of new-product rollouts and agent appointments.

Final checklist and next steps

Before your next business decision or hiring choice, do this:

1. Gather payroll, job descriptions, and any written agreements for people who work for you.
2. Contact an independent agent and ask them to solicit quotes from both long-established carriers and newer program markets in your state.
3. Request written clarifications on family member coverage, audit procedures, and claims handling times.
4. Review your homeowner’s policy and business property coverage—consider a BOP if you have inventory or customer visits.
5. Document and implement at least three simple safety measures and keep records—they help with underwriting and claims.

Parting thought: Don’t let new market entrants create surprise risk

Stonetrust’s expansion into North and South Carolina in January 2026 and the continued growth of program underwriters signal helpful capacity for small, home-based employers. But change brings both opportunity and complexity. For retirees running businesses from home, the key is to be proactive: audit, ask the right questions, document family employment, and use independent agents to shop the new marketplace.

Call to action: Take 30 minutes this week to complete the checklist above and speak with an independent agent about how 2026 market changes could lower your premiums and strengthen your protection. If you’d like a printable checklist or sample family-employee agreement, visit retiring.us/resources or contact a licensed independent insurance agent listed on your state insurance department’s site.

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