Do You Need Insurance For Your Side Gig?

Start a side business making birthday cakes, doing tax returns or playing guitar at weddings, and you bring in extra money and pursue your passion. Your homeowner's, renters, auto and personal insurance policies might not cover your business venture, though. Learn more as you protect yourself and pursue your side gig.


What are the Risks of a Side Gig?

You may have thought of the financial risks of starting a side gig and considered how much time it would take. But there are other risks you need to consider depending on what type of business you run. Possible risks include:
  • You store sensitive client information on your laptop, and it's stolen.
  • The UPS driver delivers a business package to your front door, slips on the steps and breaks her foot.
  • Your dog bites a client's hand during a consultation in your home office.
  • Someone has an allergic reaction to the birthday cake you bake.
  • You're in a car accident while delivering products to a client.
  • A broken water pipe destroys the inventory you store in a spare closet.
  • A promotional picture on your website features people who did not give you permission to use their photos.
These are only a few possible scenarios of things that can go wrong when you operate a business from your home. In these circumstances, you are liable for damages, including medical payments. Without the right insurance, you could face a lawsuit or bills that put you out of business and jeopardize your home, vehicle and other assets. Business insurance provides you with a layer of protection and gives you peace of mind.

How Much Does Business Insurance Cost?

The average business policy costs between $300 and $500 per year. Your specific business, inventory and assets determine how much coverage you'll need and what the policy will cost.

What if You've Got a Sharing Gig?

Maybe you drive for Uber or have your home listed on Airbnb. Find out if your personal insurance policy covers liability if someone is injured while riding in your car or has valuable jewelry stolen while spending the night in your home. You may not have adequate liability, medical payments, comprehensive or collision coverage in your current policies.

In these cases, research a rider or endorsement. It's an add-on policy that boosts your current coverage and protects you in case something goes wrong.

While operating a side gig might be a good fit for you, make sure you and your business are insured. Spend time discussing your needs with your insurance agent, and invest in the right insurance for your side gig.
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