Do You Need Insurance for Your ‘Side Hustle’?
Recent research from Finder has found that 43% of people in the UK have a ‘side hustle’ as an additional source of income.
A side hustle is defined as a form of self-employed work in addition to a full-time job and, with the cost of living on the rise, side hustles are becoming increasingly popular among Brits looking to supplement their income.
Here we take a look at what insurance the UK’s growing number of side hustlers might need.
Most popular side hustles
A side hustle can be anything from a hobby you can do in the evenings that helps to make a bit of extra money, such as crafting, to becoming a fast-food delivery rider during your spare time.
Some popular side hustles include:
- Freelance writing – set up profiles on freelance websites and be found by businesses looking to outsource the writing of blog posts and other forms of content.
- Selling crafts – platforms such as Etsy allow you to sell things you create in your spare time, such as candles, pottery, jewellery, embroidery, greetings card – just about anything really.
- Hair and makeup stylist – hair and makeup artists might be able to make additional income by doing home visits in their spare time – or by posting tutorials online.
- Wedding photographer – if you are a keen photographer, you could start offering your services for weddings and other events during the weekends.
- Freelance designer – if you know your way around Photoshop you could develop a lucrative side hustle designing logo’s, websites, infographics, PowerPoint presentations etc. for businesses
Even if it is small, your side hustle is still a business. Whether you're selling products or services, you could be held responsible if something goes wrong.
From handling client information to using expensive equipment, there are risks that could leave you financially vulnerable.
Starting a side hustle is exciting, but have you considered protecting it with insurance? Here’s why it matters.
Your home insurance might not cover your business
Many entrepreneurs who run a side hustle don’t think that insurance is necessary as they believe their home insurance policy will provide the cover they need.
Although you may be working from home on your side business, it is likely that your home insurance policy will not cover your day-to-day business activity – which could leave you financially exposed if anything happens to your business equipment or if you damage a client’s property.
You could be sued, even if you’ve done nothing wrong
A customer or client of yours can sue you if they are not happy with your work. Even if their claim has no merit it can cost you both time and money to defend yourself.
For example, if you are working as a marketing consultant as your side hustle and the strategies you recommend do not produce immediate results, your client could make a claim as you failed to deliver the services promised.
In this type of scenario Professional Indemnity insurance could help protect you and not leave you having to defend the claim yourself.
Things happen that you can’t control
From members of the public tripping over your equipment and injuring themselves, to your home office being broken into and your laptop, cameras etc. being stolen – accidents happen all the time and it’s important that you protect yourself against these risks.
Public Liability insurance, for instance, can help cover you if you cause third party injury or property damage, so if your side hustle involves meeting people or working in public then this should be a consideration.
Equipment insurance can help protect your business equipment – which could be anything from a laptop and tablet to specialist cameras, sound recording equipment, makeup kits, design tools and more.
Even if your side hustle only brings in a small income or doesn’t feel like a fully-fledged business, if you're offering products or services, it can be a good idea to protect yourself from potential risks.
While the idea of "risk" might sound overwhelming, it’s simple: think about anything that could go wrong.
Whether it’s losing your laptop or facing a legal claim from a client, having the right protection can save you from unexpected costs and keep your side hustle running smoothly.
Examples of the types of insurance you may need for your side hustle include:
- Public Liability
- Equipment insurance
- Professional Indemnity insurance
- Product Liability insurance
- Property and Contents insurance
- Cyber insurance
To learn more about what insurance you may need, read our guide:
Written by
Luke Glassford
Marketing Director
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