Many people earn income through flexible, project-based work. Insurance may not be the first thing a gig worker considers, but it can make a significant difference when unexpected events threaten financial stability.
What Counts as Gig Work?
Gig work is short-term or contract-based jobs where the worker is not a traditional employee. Gig workers can include:
- Rideshare drivers
- Food, package or grocery delivery drivers
- Freelancers, such as editors and writers
- Pet sitters and dog walkers
- Home-service providers
- Event videographers and photographers
- Virtual assistants
- Tutors
Gig workers don’t have the same financial safety nets as traditional employees. Even small accidents or mistakes can lead to expensive claims, legal fees or medical bills without employer-provided coverage. Insurance can help safeguard a gig worker’s financial stability and future income.
Insurance Options
It’s crucial for gig workers to consult an experienced local agent when considering insurance policies and coverage amounts. Agents may recommend numerous policies and endorsements, depending on the nature of the gig work and its associated risks.
- General liability insurance can help cover common third-party claims, including bodily injury, property damage, and personal and advertising injury, such as copyright infringement or defamation. It may also help cover legal defense costs.
- Professional liability insurance can help cover potential settlements and legal defense costs if a client claims inadequate work, negligence or that the gig worker made a professional mistake.
- Commercial auto insurance or a rideshare endorsement can help provide liability and vehicle coverage if the gig worker uses a vehicle. Lyft and Uber drivers, delivery drivers, and workers who run business-related errands may need this coverage, as personal auto insurance typically excludes business activities.
- Health insurance can help cover general health needs, such as doctor visits, lab work, prescription drugs and hospital services. These policies can be purchased through the ACA Marketplace or Medicare, if qualified.
- Life insurance can provide a lump sum payout to beneficiaries if the gig worker dies while coverage is in force. Term policies provide coverage for a set number of years. Permanent policies are designed for life-long coverage and may build cash value over time.
Gig Work Insurance Costs
Premiums depend on various factors, including the type of gig work, coverage types and limits, location, claims history and frequency of work. Because gig work is so diverse, it’s crucial to get personalized quotes from an agent you trust.
Contact the local insurance experts at Deeley today. We’ll help build the perfect protection plan that helps you control costs without sacrificing coverage. Call or text us at 410.213.5600.
