In recent years, many of us have been pursuing side hustles, whether to make an additional income or fulfill personal passions. While side hustles bring in additional cash, they also require additional considerations, particularly when it comes to insurance. With a side hustle, you are essentially starting a small business, which means you would have to deal with risks and liabilities that come with running a business. In this blog post, we’ll go through some side hustle examples, the cost of insuring, and the risks of not insuring properly or not having insurance at all, to help you navigate insuring your side hustle.
To provide context, side hustles come in different forms and vary in scale. Some are small such as pet sitting, while others are bigger such as rental properties. Side hustlers or entrepreneurs need to think through their options for insurance and consider potential risks before engaging in any side business.
Examples of side hustles include but not limited to: freelance writing, pet-sitting, online tutoring, selling handmade items online, real estate, event planning, delivering food or packages, ridesharing, and much more. Depending on the side hustle that you choose, you might be required to hold insurance policies on top of the existing policy held by your employer.
Cost of Insuring:
The cost of ensuring your side hustle depends on what kind of work you’re doing. For instance, if you’re pet-sitting or doing freelance writing, the cost of insuring is going to be less than a side hustle that requires additional equipment. If you’re running a side hustle like renting out part of your home, you might need a comprehensive policy that includes liability coverage and landlord insurance, which can be pricier. Ideally, it’s best to talk to an insurance agent to discuss available options, risks, cost-effectiveness, and tailor coverage to your specific needs.
Risks of Not Insuring Properly or at All:
Not having insurance or proper insurance in place might lead to financial loss or cash flow problems in case of lawsuits for injuries, damages, or other liabilities. Moreover, this risk increases if your side hustle involves physical goods or if you work closely with clients. The cost of insuring an incident (which could be as little as a lost item or as severe as a personal injury) properly will be much more cost-effective than paying for legal fees, which could end up being high if legal battles ensue.
It is crucial to think of your side hustle as a business when it comes to insurance, and to find insurance coverage which is suitable for your unique business. Whether it’s running your own website or providing service, your side hustle could be exposed to risks regardless of your size of business. As your passion project or side gig grows, you never know what might happen, so investing in insurance might protect your business, clients, employees and most importantly, you.
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