Is Your Side Hustle Putting You at Risk?
Side hustles are everywhere – and rightfully so, life is expensive! From Etsy shops and Airbnb rental properties to handyman contracting services and freelance design work. These extra income streams are smart, resourceful and often necessary to keep up with the cost of living. What many side-hustlers don’t realize is that their operations come with risks – especially when it comes to insurance. If you’re running a side business of any kind, it’s time to ask: Are you unknowingly exposed to liability or financial loss?
Why Your Personal Insurance Might Not Be Enough
Some side-hustlers haven’t contemplated insurance, others assume their homeowners, renters, or auto insurance will automatically cover business-related activities. Unfortunately, that’s rarely the case. Most Homeowners, Renters or Personal Auto insurance policies are designed to cover personal exposures – driving to and from the office, your son or daughter’s birthday party, the personal property inside your home or apartment. What many fail to realize is that they do not contemplate or cover business-related activities.
Here are a few examples of how gaps in coverage can affect common side hustles:
Contractors & Handyman – doing side jobs like remodeling, painting, or home repairs? Even small, one-off projects can expose you to significant liability. If a client claims bodily injury or property damage, your personal insurance won’t help – and one lawsuit could wipe out your earnings, and much more. Consider an example – you’re a handyman and install a wall mounted TV. Weeks later, your customer calls saying the TV you mounted fell off the wall! The TV has been destroyed, and they have additional property damage from the fall. How are you going to pay for this damage? Answer – Completed Operations Coverage.
Freelancers & Creatives – Are you providing design or creative work? What happens if a client sues over a missed deadline or an alleged copyright issue? Your Homeowners Policy won’t cover a “professional” error. Professional Liability is a must!
Resellers or Crafters – Do you sell handmade goods online or from home? What happens if a customer claims they were injured using your product? Product liability isn’t included in Homeowners Insurance, but it is included with most General Liability Policies.
AirBnb Hosts – Renting out a room or property, even occasionally, can be a great source of income. It can also void parts of your Homeowners Insurance. While Airbnb may offer certain host protections, these programs can have significant limitations, exclusions, and don’t replace a proper Landlord or short-term rental insurance policy. If a guest is injured, causes damage, or sues you, you may not be fully protected without the right coverage in place.
Tutors, Coaches or Consultants – if someone alleges bad advice or injury during a session, you could face serious legal costs without Professional or General Liability Coverage.
How Business Insurance Can Help
Depending on your side hustle, finding the proper insurance coverage is key. This may include:
Home-Based Business Endorsements – an add-on to your Homeowners Policy that offers limited business coverage for a home-based business.
Business Owners Policy – Combines General Liability and Property Coverage for small businesses. Do you need coverage for business property or stock? Do you need Liability Coverage to protect you from business-related lawsuits?
Professional Liability – Are you giving professional advice? Professional Liability provides coverage if someone claims negligence or mistakes in your work.
Commercial Auto – Are you running business errands with your personal vehicle? Personal Auto Insurance often includes business-use exclusions. If you’re running business errands with your personal vehicle, you could be setting yourself up for a denied auto claim.
Product Liability – Are you selling a product? What happens if there is a product defect? Product Liability is often included in General Liability Coverages and could save you from a Product Liability Lawsuit.
Workers Compensation – If you hire help, even part-time or as an independent contractor, you may be legally required to carry Workers’ Comp. This protects you and your workers from medical costs and lost wages due to work related injuries – and helps you avoid costly fines or lawsuits.
So, Do You Really Need It?
The short answer – if you’re making money from a service, product or rental – yes. You likely need some form of business insurance. The good news? Many of these coverages are affordable and customizable to your unique hustle. Plus, as an independent agency, we can shop across multiple carriers to find the right fit for you.
Next Steps
Not sure if your side hustle needs insurance? That’s what we’re here for! Let’s talk about what you’re doing, what’s at risk, and how to protect it – so your hustle keeps growing without unwanted surprises.
Visit our website, www.andersonvanhorne.com, or give us a call at 585-924-3069 for a no-pressure risk review. You might be more exposed than you think, and we can help!
