During the past decade, there’s been a surge in gig economy workers. Many people simply want to work from home on their computers, so they can maintain a healthy work-life balance. Others thrive as freelancers after developing professional skills and quality service. Here’s what you should know about gig economy careers and how they relate to insurance.
Benefits and Downsides of the Gig Economy
The main benefits of the gig economy are that it allows for freedom and flexibility. It also cuts costs on transportation. It’s typical for gig economy workers to be their own bosses and pick their own assignments. They can also set their own schedules and do work from any location they choose.
On the downside, gig economy jobs tend not to pay as well as traditional 9-5 jobs. Gig workers also must seek their own insurance coverage if they want to protect their assets. While employees of traditional companies can get health and life insurance policies at lower rates due to group plans, gig workers usually must settle for individual plans with higher costs.
Three Must-Have Insurance Policies Independent Workers Need
The three types of insurance policies that work best for independent gig workers are general liability, professional liability, and a health plan. If your company hires employees, you’ll need to also carry workers’ compensation. Owning business vehicles requires buying commercial auto insurance. Various other coverages may be needed to protect all your assets.
1. General Liability Insurance
Many business owners of various sizes carry general liability insurance as part of a basic business insurance plan. This coverage protects the business by paying legal costs for lawsuits. It pays for when someone is injured or financially set back due to your work or workplace. Some of the areas it covers include libel, slander, and copyright infringement.
2. Professional Liability Insurance
Your general liability insurance only covers so much. Professional liability insurance fills certain gaps in general liability coverage involving work that falls short of customer satisfaction. Contractors can get sued if their work is done improperly or lacks the quality the client expects. A key reason it’s important to carry professional liability insurance other than to protect your assets is that it lets clients know you take responsibility for your work.
3. Workers’ Compensation Insurance
Not all businesses need to carry workers’ compensation. If you only work for yourself, then you won’t need it. But if you hire workers, you’re required by your state to carry workers’ compensation as liability protection. The coverage pays for the employee’s hospital bills when they sustain an injury or illness at work. Failure to carry this insurance if you have a staff can result in expensive fines and possible jail time.
Learn More About Workers’ Comp Insurance for Gig Economy Workers with Advanced Insurance Group
Not only do we serve various traditional professionals, but we also have insurance plans for gig economy workers. Let’s discuss your needs and how we can help you customize a policy based on activities associated with your freelance work. Contact us at Advanced Insurance Group to get started on your plan today!