If you have a side hustle that needs insurance, make sure you understand the costs, benefits, definitions, and terms of coverage.
A personal auto or home insurance policy is likely to be inadequate for side hustles like AirBnb or AmazonFlex.
Personal Vs. Commercial
Since the gig economy has grown, insurers have started to exclude coverage for “commercial” pursuits specifically. Meaning your auto insurance covers personal driving, but if you use your car for drive-shares and there is a paying passenger, that coverage is void.
Concerning your home; when you regularly bring renters into your home, you are running a business, and businesses are not covered under your standard homeowner’s policy.
What are “riders”?
The right coverage isn’t tricky – some insurers offer it through a “rider,” a provision that adds benefits or amends the terms of your personal insurance policy. Comprehensive coverage is more desirable if you use your personal assets for work more than half the time.
Policies like “landlord” insurance may be more necessary if you consistently use your real estate to host paying guests. This insurance covers the cost of a paying guest’s medical expenses if they’re injured, it can also provide compensation for lost income if your house is damaged and can’t be rented while you complete repairs.
Commercial Insurance
Commercial general liability insurance is a broad type of insurance policy that provides liability insurance for general business risks. In other words, it is broader coverage for instances you may not have considered for your side-hustle.
Be sure to understand your coverage options and liability. Important too, is understanding your deductible cost (the amount you pay out of pocket before your insurance policy pays).
Some online platforms offer insurance, so make sure you ask and shop around to get the best coverage and price.
