Side Hustle Insurance

Side Hustle Insurance

Get customized, low-cost protection for your side hustle and protect your finances

Zensurance - Side Hustle Insurance

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Side Hustle Business

Customized business insurance for your side hustle

Having a side hustle, side job, or a job in the gig economy is on the rise in Canada. 

Data suggests 28% of Canadians now have a side hustle, up from 13% one year ago. Moreover, 72% of side hustlers hope to turn their side gig into their primary business.

Whether you have aspirations of making your side hustle a full-time occupation or not, all side hustles come with significant liability risks that pose potential threats to your financial health and reputation.

A customized side hustle insurance policy is the backbone of your risk mitigation strategy protecting your finances and reputation following an insurable loss.

Side hustle insurance is a tailored policy containing several types of insurance designed for anyone engaged in part-time or occasional business activities to protect their finances, assets, and reputation from damages and losses. There are several reasons why you should protect your side hustle with 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.

The price of a side hustle insurance policy is determined by insurance companies and is based on several factors about your side gig, including:

  • Your location
  • What your side hustle is and what you do
  • The types of insurance coverages you choose, their coverage limits, and deductibles
  • Your years of experience
  • If you need commercial auto insurance, what your driving record shows and how many kilometres you drive annually
  • Your annual and projected revenue
  • Your insurance claim history

Anyone with a side hustle should have a comprehensive business insurance policy, including:

  • Airbnb and VRBO rental property owners
  • Freelancers: writers, graphic designers, web developers, photographers and videographers, social media managers, social influencers
  • Online sellers: anyone using e-commerce platforms to sell new and used products, including Amazon, Etsy, eBay, Depop and Shopify
  • Crafters and makers: handmade crafts, clothing and accessories; artists creating artwork and jewellery
  • Tutors and instructors, whether online or offline
  • Pet sitters and dog walkers
  • Handymen, handywomen, lawn care and gardening providers
  • Fitness, wellness, and yoga practitioners and instructors
  • Virtual assistants, data entry professionals
  • Consultants and coaches for business, finance, career development and life coaching
  • Event planners and organizers

Getting insured is quick and easy!

Complete our 5-minute online application for a free side hustle insurance quote.

Common claims scenarios

Consultant as a side hustle

Problem: While doing business consulting on the side, one of your customers accuses you of failing to meet professional standards and delivering a service as promised. They threaten legal action.

Outcome: Professional liability insurance may cover your legal defence expenses and any settlement or judgement against you in court.

Selling crafts on the side

Problem: You sell handmade crafts through a third-party marketplace online. One of your customers alleges a product you sold to them caused them to suffer an injury due to a defect.

Outcome: Product liability insurance may cover the customer’s medical expenses and your fees to have the item returned to you.

E-commerce side hustle

Problem: You run an e-commerce site on the side selling custom music apparel and music paraphernalia that accepts digital payments from customers. Unfortunately, your site is hacked and your customers’ payment data is stolen.

Outcome: Cyber liability insurance may cover your expenses to re-establish your website, provide your customers with credit monitoring services, and repair or restore your software systems.

Frequently asked questions

Do I need business insurance if my side hustle is only part-time?

Yes. Most side hustles or side jobs you have require business liability insurance to protect your finances from accidents, unexpected damages, and legal threats. Whether you’re a part-time Amazon or Etsy seller, dog walker, or photographer, you’re liable for any product you sell or service you provide.

Does my side hustle insurance cover special events?

Some side hustle insurance policies may cover special events, but it depends on the policy’s terms, conditions, exclusions, and endorsements. Most policies would cover you for your business attending events such as markets and tradeshows. Speak to a licensed Zensurance broker if you have questions about the type of coverage you need.

Can I get insurance if my side hustle operates from home?

Yes. Whether a side hustle or full-time occupation, all home-based businesses should have a business insurance policy. Contrary to popular belief, homeowner insurance, condo insurance, or renters insurance is not designed to cover damages and losses resulting from commercial activities.

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Ready to start? Let’s get a quote!

Are you ready to protect your passion project with comprehensive protection and peace of mind? 

Fill out our online application and get a free quote today. We can get the low-cost liability insurance you need to safeguard your hustle against unexpected twists and turns. 

Let’s ensure your side gig stays as fun, carefree, and financially rewarding as it should be! Don’t wait, let’s hustle smart together.