The modern workforce is shifting and more professionals are self-employed or working on contract than ever before. This makes for a varied and versatile experience, but being independent also means taking on your own risks.Thankfully, with the right insurance on board, no risk is too far outside of a strong safety net.
What Is the Gig Economy?
Originating in 2009 and harkening back to the early 20th century when “gig” was coined by jazz players to refer to an individual performance, the term “gig economy” has really come to dominate workforce discussions in recent years. But what is it? Much like those jazz greats of days gone by, today’s gig workers typically have short-term, flexible, and freelance work rather than permanent jobs. The gig economy is the labor market that they make up, and these days a lot of this employment takes place on digital apps. Payment is generally task-based and received per job, not as a standard, predictable salary. Gig workers also often work with a wide range of clients in order to make a collective, living wage.
Common examples of folks who work independently and so fit the gig worker profile can include:
- Freelancers
- Consultants
- Graphic designers
- Photographers
- Ride-share and delivery drivers
- Contractors and tradespeople
- Real estate professionals
- Personal trainers
- Tutors
- Content creators
- IT professionals
There are many reasons why people get into gig work. Some choose it for the high levels of scheduling control, autonomy, and the ability to choose when and where they work. Others find their way to gig work out of necessity. Whatever the case, these independent positions have their perks and drawbacks, like any other job. One big negative is the lack of protection that is typically offered by standard employee benefits like health insurance, paid time off, workers compensation and statutory sick leave.
But another risk that not everyone sees coming is that there is no authority figure to absorb liability if something goes wrong. More often than not, blame–and calls for recompense–shift to the gig worker themselves. Whether you work full-time as an independent contractor or have a side hustle, having the right insurance in place can provide valuable protection when the unexpected happens.
Coverage That Independent Contractors Really Need
At Althans Insurance Agency, we help freelancers and small business owners protect both their income and reputation from the risks they encounter each and every day.
Common risks and exposures that independent contractors face can include:
- Property damage
- Third-party injuries
- Professional mistakes or omissions
- Equipment theft
- Vehicle accidents
- Cybersecurity incidents
- Lost income due to illness or injury
Here’s the collection of coverage options that address the common risks that independent contractors face:
- Professional Liability (Errors & Omissions) Insurance: Covers claims of negligence, mistakes, or missed deadlines, necessary for professionals who provide advice or services
- General Liability Coverage: Protects against bodily injury or property damage to third parties, vital for anyone who visits client locations and meets customers in person
- Cyber Liability Insurance: Safeguards client data and digital assets from breach or loss, vital for businesses that store customer information, accept online payments, work remotely or manage sensitive digital files
- Business Property Coverage: Covers equipment and tools (e.g. laptops, cameras, power tools, medical equipment, musical instruments) even when you work from home
- Commercial Auto Insurance: Essential for contractors who drive to multiple job sites, delivery drivers and mobile service providers
- Occupational Accident & Disability: Financial backup if a contractor is injured and cannot work, vital if you are truly self-employed
- Workers' Compensation: Coverage is likely necessary for any type of employee, whether they be part-time, borrowed, leased, or family members and volunteers
Additional coverage options include:
- Business Owner's Policy (BOP): This comprehensive coverage bundles common coverage options into one tailored policy. It typically includes general liability, commercial property, and business interruption coverage
- Umbrella Insurance: Umbrella coverage goes beyond standard policy limits and can be useful for contractors and other independent workers with significant assets, higher liability exposure, and multiple business activities
Clearly, when you’re out there on your own, there are plenty of threats around every turn. But when you work with insurance professionals, like the team at Althans, independent doesn’t have to mean unprotected. We help self-employed professionals thrive with confidence, knowing that they’re protected, come what may.
How to Evaluate Your Insurance Needs
It’s easy to think that your personal insurance coverage will take care of your business needs, especially if you’re working out of your home. But this is simply not the case. It’s also common for businesses to purchase only minimum coverage and neglect to review coverage needs as their company grows. Outdated, insufficient coverage is not much better than having none at all. It’s also common to ignore cyber risks because “this isn’t an IT company,” but in today’s digital age, we’re all enmeshed in the cyber risk web, like it or not. Remember, too, that some contracts and clients will demand certain insurance coverage–without it you could be left in the cold.
But where do you start? How can you know which coverage(s) you, specifically, need to be protected? Easy–contact our expert team and we will work with you to find the right coverage options. You just need to think long and hard about a few key aspects of your work:
- Client requirements
- Equipment value
- Annual revenue
- Employees or subcontractors
- Vehicle usage
- Contract obligations
No two businesses have identical risks, so it’s worth hashing out the details. Then you’ll be ready to consult with the friendly team at Althans Insurance Agency, who will find you that just-right coverage that will protect your hard work and allow you to keep growing.
Get Protected With Althans
Working independently offers flexibility and opportunity, but it also comes with unique responsibilities and hidden risks. The right insurance coverage can help to protect your business, your income, and your financial future so you can focus on serving your clients with confidence.
When you work with Althans, you can expect professional insurance experts who will evaluate your business risks, recommend appropriate coverage, explain policy options and help to identify potential coverage gaps. Then, as you grow and your business shifts or encounters new challenges, we’ll be here to review your insurance and recommend new coverage options. It’s time to get protected–it’s time to call Althans.