When you’re working in the gig economy you have the flexibility to choose the days and hours you work. There’s also a wide range of jobs on offer, from driving for a rideshare service, delivering food or providing household services, to working freelance as a consultant. But gig economy insurance protection is still a vital consideration.
“Some people work a few hours a week to earn extra cash while, for others, it’s their full-time occupation,” says Michael White, Broker Technical Manager at Steadfast Group. “Either way, as you’re self-employed, you’ll probably be responsible for most or all of your insurance cover.”
For your own safety, it’s vital that you understand the risks you face and make sure you have the right protection. Here’s some key points you should know to help you reduce your financial risk.
What gig economy insurance do you need?
These are the types of cover most likely to apply to you as a gig worker. The ones you need will depend on the type of work you do.
Public liability insurance can cover the financial cost of damage or harm you do to a person or someone else’s property.
“If you’re a cleaner, for example, you might break a valuable vase or, worst case scenario, accidentally set the house on fire,” says White.
Professional indemnity insurance is often important if you’re paid for advice. You could be open to a claim of negligence if a client believes that following your advice financially damaged their business.
Vehicle insurance can pay out if the vehicle you use for work is damaged or involved in an accident. When the gig economy was still relatively new, regular car insurance policies didn’t provide cover for the driving you did for business. However, many providers now include, or give you the option of adding, this level of protection – your product disclosure statement will have details.
Tools of trade insurance can help you to replace tools, equipment, and other business-related property if it’s damaged, lost or stolen.
Business interruption insurance may cover loss of turnover as a result of physical damage to the building from which you operate, as well as other specified events.
Workers’ compensation can help support workers who are injured at work. All employers must have workers’ compensation insurance for their workers but, as a gig worker, you may be classed as an independent contractor rather than an employee. Ask you your platform owner where you stand in regard to eligibility for status as an employee.
Look for specialised insurance
Insurers are starting to recognise the importance of the gig economy and we’re seeing more products tailored to its needs. Remember that, even in specialised areas, the cost, coverage and exclusions can vary widely. Compare quotes from a number of reputable insurance companies which have good customer reviews and a strong financial rating before you decide.
If you’re not sure, get help.
Insurance can be confusing. As a gig worker, you have a lot to think about when you’re looking for protection you can afford.
Your AIB insurance broker can recommend the right policies for peace of mind and financial security.
Important notice
This article is of a general nature only and does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your Steadfast insurance broker as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider any relevant Target Market Determination and Product Disclosure Statement in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers.
Steadfast Group Ltd ACN 073 659 677
Important notice – Steadfast Group Limited ABN 98 073 659 677 and Steadfast Network Brokers
This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.
Information is current as at the date the article is written as specified within it but is subject to change. Steadfast Group Ltd and Steadfast Network Brokers make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Steadfast Group Limited.
