
Side hustles can very often come about organically. In addition to your day job or main income, you may have a hobby or interest which over time starts to earn you extra money. When we plan to start a business, we have to make sure that everything is above board and all insurances are in place before we begin. However many people with an established side hustle business are now discovering they need insurance. To find out more, read our post 5 reasons you need insurance for your side hustle:

1. You Run Your Side Hustle Business at Home
If you run your side hustle business from your home then you will need insurance. Any business or money-making activity won’t be covered by your home insurance. You are also at risk of invalidating your existing home insurance. This could negatively impact you for a number of reasons, for example
- if a lot of stock you’ve taken time to make becomes damaged at home
- there was a house fire caused by baking goods for your business
- items were stolen from your home related to your side hustle, eg a laptop or products you’ve made
If you run your profitable side hustle from home, make sure you have business insurance.
2. If Your Side Hustle Takes Place Outside of Your Home
Equally, if your side hustle takes place outside of your own home you should ensure that you are covered. You still need to have protection in case your business belongings or stock get lost or damaged. If you visit your client’s house whether for personal trainer sessions or to cut their hair, you need to be covered for any damage that could occur to their home.
3. Your Side Hustle Involves Members of the Public
Once your side hustle has customers and clients, you will need public liability insurance. This covers you if a member of the public gets injured or loses out financially and blames your side hustle. Side hustlers can need public liability insurance for a range of diverse reasons. For example, a dog walker whose client’s dog bites a member of the public or a baker whose clients have an allergic reaction. For that reason, it’s a good idea to find specialist insurance that suits your individual need. If your side hustle is DIY and building work for others then you should take out public liability for builders to ensure you are fully protected. The policy will payout for the legal expenses and compensation owed by your business.
4. If a Client isn’t Happy with Your Work
Even when you do your best and work to your highest standard, your client can always challenge your work if it doesn’t meet their expectations. All small businesses that offer professional services are vulnerable to claims of negligence, from allegations of a breach of copyright to accusations of defamation. Whether these claims are true or not, they are costly so make sure you have professional liability insurance.
5. To Help with Non-Payers
Insurance can have extra benefits. When choosing your side hustle or freelance insurance lookout for insurance that offers extra services, such as helping you chase clients for any unpaid invoices. Policies with legal expenses insurance will often cover your loss of income if you’re called for jury service and tax enquiry service will pay for your accountant’s fees if you’re ever investigated for a tax inquiry.
Do you have a side hustle?