Tips to Know If You Need Business Insurance for Your Side Gig

Are you working a side gig to supplement your 9-5 income? Maybe you're hoping to grow it to something that replaces your day job. In any case you're not alone. Many people are driving for Uber, pet sitting, catering and more to earn more money.  

One thing that people frequently overlook is having business insurance. Yes, you usually need it. Your personal policies for home and auto might not offer protection should a daycare child need medical attention. Or if a client's dog bite a runner in the park. It's important to look into getting a business policy that offers coverage specific to your line of work. No matter how small your side gig is. 

Here's a short yes/no quiz to see whether you need business insurance:

While this isn't fool-proof test, it's a good start. Did you answer yes to any of the questions? If so, you should talk to an insurance agent about purchasing a business insurance policy. They can likely ask you about your practices much more specifically. 

There's a fine line between business and personal activity. What if you drive for Uber, rent out a spare room on Airbnb, or sell products an independent consultant? Do you need business insurance? You might think that you're covered by the company you work for in case of a work-related incident. Unfortunately, if they do, it's often not enough. There was probably something about it in the fine print. Your company might offer only the bare minimum in coverage. That might not be enough should a worst-case scenario occur.  

Your personal auto and home insurance won't likely cover your business activity either. There's a high chance that you don't have enough coverage. Furthermore, some policies might specifically exclude commercial ventures. 

The vast majority of the time, your business will run smoothly. But for that one time that things go awry, you'll be glad you have it. Your agent can help you find a business insurance policy that offers the coverage you need. A few hours of legal service could wipe out an entire month's side gig income. Don't expose yourself to such risk.