A side gig is a great way to earn extra money. It is an opportunity to branch out on your own, and it can even grow into a full-time business that allows you to "finish your daily work". One thing to keep in mind when running a side job is the importance of protecting your business and yourself if something goes wrong. To be completely protected, you may need business insurance.
Does Every Affiliate Need Business Insurance?
Whether you need business insurance depends on the level of risk associated with your side game. If you work in someone else's house, you need insurance for protection against liability. On the other hand, if you work from home as a writer, there is not much risk, and you may not need the protection. Consider the following to help you determine if you need business insurance for a side job:
- Are packages delivered to your home?
- Do customers or clients come to your home?
- Do you use your vehicle for work?
- Do you handle sensitive material or process payment information?
- Do you work with children or animals?
- Can anyone be injured or become ill as a result of your business?
- Can a major inventory loss or lawsuit wipe you out?
The main question to ask is what happens if something goes wrong. If you lose everything you have built, you may need business insurance.
What types of gig insurance do I need?
Every side business is different, and so are its insurance needs. A business owner policy (BOP) can be a good place to start. This is a custom, packaged policy including various types of coverage you may need. A BOP generally includes property, liability, vehicles, business interruptions and criminal insurance. Our agent can help you tailor a BOP to meet your specific requirements.
General Liability Insurance
General liability is basic coverage that most companies require. It protects you and your company from liability for bodily injury or damage to someone else's property. Most BOPs include general liability protection, plus property protection.
Professional liability insurance
Professional liability insurance is also known as error and negligence insurance (E&O). It provides protection against lawsuits and claims against your company based on alleged errors, negligence or failure to perform. Normally, these insurances cover legal costs in connection with receivables and any settlements or awards, up to insurance limits.
Cyber liability insurance
Even small companies risk cyber attacks. Hackers can break into your system and steal your customers' personal information, which can lead to privacy breaches. Cyber liability insurance covers costs for legal costs and settlements in connection with lawsuits arising from cyber attacks. It can also cover costs for reporting, credit monitoring, data retrieval, fines and penalties and loss of client and personal identity theft.
The business insurance package that you purchase for your side game should be tailored to your unique needs. Talk to our agent for knowledgeable advice on how to protect yourself and your business.