• Catherine France

Do I need insurance for my side hustle?

Updated: Aug 15, 2020

Are you working on starting a business while you continue to work full or part-time? It is estimated that as many as 40% of UK workers have a side-hustle [1] contributing £72bn to the UK economy [2].

Do you know when your side-hustle needs insurance?

It is an exciting time developing a business that you are passionate about and insurance probably hasn’t crossed your mind but now could be the right time to make sure your business is protected from any unexpected costs which may come about from something that you are not insured for.

Here are 5 types of insurance you should consider;

1. Home Insurance

You may not need additional cover, but it's best to check. You'll need to inform your insurer if your work situation changes, even if this is in the middle of a policy, if you don’t it could invalidate your insurance. The three main types of home working are clerical business use, business use with visitors and other business use where you may have stock at home which can increase the risk of fire or theft.

2. Contents, Stock & Tools Insurance

Your home contents insurance policy may not provide enough cover for working from home. You may need to include business equipment, stock or tools which would not usually be included on a home contents policy.

A fire at your house damages the stock for your online book business.

3. Professional indemnity insurance

You'll need this if your business gives advice to other people or businesses, this type of cover is designed to protect you in the event that you provide them with incorrect advice which results in them suffering a financial loss which could result in them taking legal action against you.

Web designer’s client sued by image owners for using unlicensed pictures on his website.

This type of insurance would cover the legal costs and compensation, within the terms and conditions of the policy.

4. Public liability insurance

This covers the financial loss you may incur should a member of the public suffer an injury or have property damaged at the premises used for your business.

The postman sprains his ankle delivering a parcel for your business.

If you come into contact with members of the public either at your premises or elsewhere this type of cover may be a contractual requirement. If you exhibit at fairs or craft market’s you will be asked to hold this type of insurance and probably provide a copy of it to organisers.

5. Cyber Liability Insurance

Cyber insurance is relatively new to the insurance market but if you use a computer to run your business then you probably need cyber insurance.

Your laptop is stolen and contains sensitive customer information.

The increase in the number of incidents where people use a computer to commit a criminal offence is on the rise and a cyber insurance policy can help, whether you suffer a data breach or a hacker holds you to ransom, provide cover against damage to your computer systems, removing viruses and loss of income in addition to which insurers can also include access to professional cyber security consultants and PR experts to help minimise the reputational damage a loss of data could cause your business.

If you need more information about insurance for small businesses download my guide 10 Types of Insurance Every Small Business Needs here - http://eepurl.com/gi4-hb

You can also find me on Twitter, Facebook and LinkedIn.

Source: [1] https://www.independent.co.uk/news/business/news/side-hustle-grows-uk-jobs-insecure-work-henley-business-school-a8431486.html

[2] https://www.independent.co.uk/news/business/news/side-hustle-grows-uk-jobs-insecure-work-henley-business-school-a8431486.html

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