Your side hustle is your passion, your paycheck, and maybe even your potential future full-time career. Whether you’re driving for Uber, selling handmade goods on Etsy, or capturing candid moments as a freelance photographer, side hustles are a great way to earn extra income and pursue creative interests. But one question that lurks in the back of many side hustlers’ minds is this: Am I protected if something goes wrong? Does my insurance cover my side hustle?
The short answer is, it depends. Not all insurance policies automatically protect your side hustle activities. To help you avoid potential pitfalls, this guide will break down how different types of side hustles are treated by insurance and what coverage you might need.
Why Side Hustles Require Insurance
Before we get into specifics, let’s tackle why ensuring your side hustle is covered is so important. Traditional insurance policies, like personal auto or homeowners’ insurance, are designed for personal use—not for business-related activities. When you start earning income from your side gig, it often crosses into “business” territory in the eyes of insurance providers.
Skipping proper coverage could leave you with financial consequences if your activities result in an accident, liability claim, or property damage. Having the correct insurance could mean the difference between fully protecting your assets or being on the hook for costly damages.
Does Auto Insurance Cover Gig Work? (Uber, Lyft, DoorDash)
Driving apps like Uber, Lyft, and DoorDash are some of the most popular side hustles today. However, using your car for business, even part-time, changes the scope of your auto insurance policy.
What to Know About Rideshare Insurance
Most personal auto insurance policies DO NOT cover accidents while you’re driving for a rideshare service like Uber or Lyft. These companies typically offer some level of coverage, but they often have gaps.
For example:
- While offline (not using the app): Your personal auto insurance applies.
- While waiting for a ride request (App On, No Passenger): Uber or Lyft’s coverage may be limited, or there may be no collision coverage at all unless you have rideshare-specific coverage.
- While actively driving a passenger (or delivering goods): Uber and Lyft typically provide liability, collision, and injury protection.
Solution: Consider adding a rideshare insurance endorsement to your auto insurance policy. Some insurers, like State Farm and Progressive, offer coverage designed specifically for rideshare drivers.
Does Delivery Driving Require Extra Insurance?
Food and package delivery (e.g., DoorDash, Uber Eats, Instacart) usually falls under a similar category. Again, personal auto insurance won’t typically cover incidents during delivery runs. Verify whether the app you’re working for offers coverage, and supplement with commercial or hybrid coverage for complete protection.
Are Home-Based Businesses Protected? (Etsy, eBay, and Handmade Goods)
If your side hustle involves selling products through platforms like Etsy, eBay, or Amazon, you might think your homeowners’ insurance will protect your inventory or workspace. Unfortunately, that’s not always true.
Most homeowners or renters insurance policies:
- Do not cover business property stored in your home.
- Do not offer protection if your side hustle activities lead to liability claims (e.g., a customer sues over a defective product).
Protecting Your Home-Based Business
- Home Business Insurance: Some insurers, such as Allstate or The Hartford, offer home business policies or endorsements that can cover business equipment, liability, and inventory damage.
- Product Liability Insurance: If you sell physical products, this insurance can protect you from claims related to product defects or injuries.
Additionally, consider platform-specific protections. Etsy, for example, offers seller protection, but it typically doesn’t cover liability claims.
How to Handle Freelance Work Insurance (Photography, Writing, Web Design)
Creative and freelance gigs, such as photography, graphic design, or writing, often involve one-on-one client interaction. These professions come with unique risks, including client dissatisfaction, missed deadlines, or accident claims during on-site work.
Coverage to Consider
- General Liability Insurance: Protects against claims of bodily injury or property damage. Example: A client trips over your photography equipment during a photoshoot.
- Professional Liability Insurance (Errors and Omissions): Covers you if a client claims financial loss due to your work. For instance, missing a crucial deadline for a writing project.
- Business Property Insurance: For freelancers who use expensive tools, like cameras or laptops, this ensures equipment is covered in case of theft or accidental damage.
Some platforms, like Upwork, may offer limited freelancer protections, but additional professional insurance adds a layer of security.
Do All Side Hustlers Need Insurance?
While it might seem overwhelming, securing insurance for your side hustle doesn’t have to be complicated or expensive. Many policies can be customized based on your specific activities and level of risk. Even hobby-style side hustles, like tutoring or dog-walking, may need coverage depending on their scope.
Here’s a quick checklist to determine if you need additional insurance for your side hustle:
- Are you earning income from this activity?
- Are you using your personal car, home, or belongings for business purposes?
- Could your side hustle activities lead to injury, liability claims, or property damage?
- Do your clients, customers, or service providers require proof of insurance?
If you answered “yes” to any of the above, it’s time to explore the types of coverage discussed.
What’s the Cost of Side Hustle Insurance?
The cost of insuring your side hustle depends on factors such as the type of work, level of risk, and coverage amount.
- Rideshare Insurance: $15–$30/month on top of your personal auto policy.
- General Liability Insurance: $300–$500/year for basic coverage.
- Home-Based Business Endorsement: $25–$150/year, depending on your insurance company.
Ask your insurer about bundling options to save money.
Take Charge of Side Hustle Security
Your side hustle represents your hard work, creativity, and drive—but every successful venture comes with risks. The key to protecting both your passion and your paycheck is understanding how insurance fits into your side hustle ecosystem.
Delgado’s Insurance: Dependable Insurance in California
If you need dependable and affordable insurance in the Golden State, look no further than Delgado’s Insurance.
We have locations in Riverside, California, and Bloomington, California. Get in touch today by telephone (951-361-0084, 909-421-9003), email (mail@delgadosinsurance.com), or through our social media accounts (Facebook, Twitter and LinkedIn)!
