Insuring Freelancers: Liability Insurance For Gig Workers
Health benefits for the gig economy are now available through BasiCare Plus. No copay, no deductibles, no claims to file, and no charge to add spouse/dependents.
Why Personal Insurance Isn’t Always Enough
When working for an organization or a company as a full-time employee, you don’t generally have to worry about getting the right commercial liability insurance. However, this cannot be said for gig workers and freelancers.
As more and more freelance jobs are created in the gig economy, it is important for gig workers to be aware of what kind of insurance they need. Many individuals are so excited by the prospect of being self-employed or having more control over the gig roles that they choose, they can forget about the insurance side of things. Whether you work as a freelance photographer, a self-employed graphic designer or run errands for TaskRabbit, it is important to be aware that personal insurance coverage may not always be enough.
The reason that all freelancers and gig workers should be adequately covered in terms of business liability insurance is that if an accident happened while you are working a gig job, your personal insurance may not allow you to claim. For example, if you work as an Uber driver or a delivery driver and accidentally damage property while working it would be classified as an accident at work. All freelance and gig workers are labelled as being independent contractors. Therefore, whenever you are working a gig job you are essentially running your own business. That is why it is vital that you think about covering yourself for commercial liability.
Consequences Of Not Being Adequately Insured
There are many consequences to not having adequate professional liability insurance in place when working as a freelancer. Not only could you be putting your career at risk but you can also face high financial risks.
If you worked as a photographer for an entertainment venue and decided that instead of taking out business liability insurance you would invest it in camera gear, you could potentially be setting yourself up for out-of-pocket litigation fees. Many professional photographers will know that not all clients will be happy with the images that you take. For example, imagine that you offered a venue an exclusive package to take photos for a very important event that they are having. If you don’t live up to their expectations and fail to provide the service you promised, they could potentially sue you. Without commercial liability insurance in place, all the legal fees and damages involved would have to be covered out of your own personal finances.
Although freelancers and gig workers may not initially think that having insurance for protecting your business is necessary, the consequences of not having coverage could be too much of a price to pay.
Commercial Liability Insurance Options For Gig Workers
The most common liability insurance options for gig workers are that of general liability and professional liability coverage. General liability insurance covers third-party bodily injuries and property damages, which are two of the biggest risks of working as a freelancer. This is especially beneficial for those who work as dog walkers, self-employed contractors and landscapers. For those who work in a freelance position such as a copywriter or a photographer, professional liability coverage is recommended. This kind of insurance will protect you if a client sues over the quality of your work. It may also signal to potential clients that you are trustworthy, responsible and have cover for any professional mistakes that you make.
Depending on the industry in which you work, it is vital that you research which kind of business insurance you will need before starting your freelancing or gig working career. Without the security blanket of a corporate insurance benefits program to protect you, individuals involved in the gig economy are at a much higher financial risk.
JAUNTIN’: Making Sure You Work Safely
The gig economy has been making it difficult to ensure that this segment of the workforce gets the right kind of insurance. Those working as a freelancer or gig worker must take it upon themselves to ensure that their business stays covered and protected. The first step to doing this is by staying educated, knowing what business insurance is and why you need liability coverage. JAUNTIN’ understands strives to ensure that all freelancers will be able to continue working safely without putting themselves or their businesses at financial risk.