Side Hustle Insurance

A side hustle insurance policy’s coverage depends on the nature of the side job and the specific risks it involves. Common policy types that are included in a customized side hustle insurance policy are:

• Commercial General Liability (CGL) Insurance: General liability insurance covers you for claims of third-party bodily injury and third-party property damage resulting from your side hustle’s usual activities. It is frequently referred to as ‘slip-and-fall’ insurance.

For example, let’s say your side hustle is being a handyman or handyperson and you’re hired to repair a homeowner’s front door. If the homeowner or a visitor to the property is injured by tripping over an extension cord connected to a power tool you’re using while working, you can be held liable for the person’s injuries. CGL, or general liability insurance, is designed to cover the injured person’s medical and rehabilitation expenses.

• Professional Liability Insurance: Also called errors and omissions (E&O) insurance, professional liability insurance protects you from allegations of professional negligence, mistakes, omissions, misconduct, misrepresentation and failing to deliver a service as promised. This type of coverage is especially relevant for side hustlers offering consulting, advising, or other professional services to their customers.

• Product Liability Insurance: If you manufacture, distribute, or sell any product or good (including food and beverages), you can be liable if the item you sold causes someone physical or financial harm. Product liability insurance is designed to provide you with financial support to pay for those damages. Sometimes, it is included in general liability insurance.

• Commercial Property Insurance: If your side hustle involves working out of your primary residence, such as a graphic designer or Amazon seller, you need commercial property insurance to cover you for damage and loss to the property and your business contents and inventory due to fire, water, severe weather and natural disasters, vandalism and theft. A homeowner insurance policy is not designed to cover business-related liability claims.

Some commercial property policies also include business interruption insurance to cover your operating costs if you’re forced to temporarily cease operations following an insurable loss. If not, you can add it as an endorsement provided you have commercial property insurance.

• Commercial Auto Insurance: If you use your personal vehicle for your side hustle, you need commercial auto insurance. Private-passenger car insurance policies typically do not provide any coverage following an accident for any vehicle that’s used for business purposes.

A basic, mandatory commercial auto insurance policy provides third-party liability, accident benefits, and uninsured auto protection in most provinces. You can add optional coverages to strengthen your protection, such as collision or upset insurance (pays to repair or replace your vehicle if you’re at fault for an accident) and comprehensive insurance (pays to repair or replace your vehicle if damaged by a natural disaster, severe weather, theft or vandalism).

• Cyber Liability Insurance: For side hustlers who operate online businesses, sell goods on Amazon, Etsy, or eBay, use a point-of-sale (POS) system to accept digital payments, or handle sensitive customer data, cyber liability insurance is a must-have. It covers you for damages and losses because of data breaches, cyber-attacks, or other cybersecurity incidents that result in unauthorized access, theft, or misuse of your customers’ confidential information.