Gig work provides many benefits over full-time employment. Self-employed delivery drivers, writers and editors, massage therapists, software developers, graphic designers, financial experts, pet care providers, and others enjoy the flexibility, independence, and variety that short-term engagements offer.
However, being a gig worker doesn’t exempt you from a challenge that companies of every size face: business risk. Clients can sue solo entrepreneurs for any number of reasons. Gig workers can also suffer the loss of business assets due to severe weather and several other causes.
Consequently, if you’re a gig worker, you probably need small business insurance.
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Common Business Insurance Coverages For Gig Workers
What types of insurance does a gig worker need? That depends on multiple factors, including where your business operates and the kind of work you do. But all gig workers can benefit from one type of coverage or another.
“Gig work has filled an important niche in the business ecosystem,” says Peter Shelley, president at biBERK. “The availability of workers to take on short-term and specialized roles or projects has proven to be very useful to everyone from homeowners to corporations.
But as the gig economy expands, people are learning that the financial protection business insurance provides is vital even to microbusinesses.”
Companies specializing in small business insurance offer various policies for different risks. This approach is particularly beneficial to gig workers, as they can save money by buying only the coverage they need.
Leading insurers also enable gig workers to obtain Certificates of Insurance online. That’s important since clients may require proof of insurance.
Six types of insurance commonly pertinent to gig workers are:
1. Workers’ Compensation Insurance
What it covers: Medical bills, lost wages, and other expenses related to on-the-job injuries.
Why you may need it: Some clients may require that you have this coverage so that they aren’t required to pay claims if you’re injured while working for them.
2. General Liability Insurance
What it covers: Court decisions and legal costs associated with lawsuits from customers/clients, damage to their property, libel, slander, and copyright infringement.
Why you may need it: Any business interaction can result in a lawsuit.
3. Professional Liability Insurance (also called errors & omissions or E&O)
What it covers: Damages and legal costs associated with lawsuits over professional advice or services.
Why you may need it: If a client accuses you of making a mistake, sues, and the court agrees with them, you may be required to pay damages. Plus, you’ve got to defend yourself—even if the claim is baseless.
4. Business Owners Insurance (sometimes called a business owners policy or BOP)
What it covers: The same costs covered by a general liability policy plus damage to company property.
Why you may need it: A BOP simplifies the management of two important types of coverage and can cover business property like tools and equipment.
5. Cyber Insurance
What it covers: Certain costs associated with cyberattacks and the loss of sensitive information.
Why you may need it: Virtually every business handles some form of customer or client data, such as credit card information.
6. Umbrella Insurance
What it covers: Amounts that exceed the limits of an underlying liability policy.
Why you may need it: Umbrella coverage can address costs exceeding another policy’s limits (up to its own limit) and may be more cost-effective than raising your policy limits.
Get Clarity In A Quick Call And Instant Online Quote
As a gig worker, you’re focused on finding a steady stream of jobs and doing excellent work for your clients. No doubt, you would rather not spend time learning all the ins and outs of business insurance, especially when many of them may not apply to you. That’s where an insurer’s licensed experts can be useful.
In a brief phone call, they can help you understand what coverage you require and which policies you don’t need. Based on their advice or your knowledge of what you need, you typically can get instant, self-service, online insurance quotes for the policies you want to purchase.
And you’re likely to save money by going with a company that provides direct-to-you coverage that doesn’t involve third-party insurance brokers.
Coverage Is Active Almost Immediately
It is crucial to have insurance coverage before you start engaging with clients and others. However, if your business changes in a way that necessitates new or additional protection, it is reassuring to know that you can have coverage active almost immediately.
Policies typically are in force the day after you purchase them. That means you won’t have to worry about incurring a large out-of-pocket expense from liabilities or losses that could have been covered but weren’t because you hadn’t secured adequate protection.
Many businesses, including gig workers, have to cease operations every year due to unbearable financial burdens. With the right business insurance, yours doesn’t have to be one of them.
