Business Side Hustles – what insurance do I need?
With side hustles becoming more common – a recent article stated 30% of British full-time workers have a side hustle with the top 5% of UK business side hustlers earning over £100k per year – it may not be at the front of your mind to make sure you’ve got insurance in place to adequately safeguard your additional income stream.
Sutcliffe & Co. Insurance Brokers has over 40 years of experience in offering protection for the business sector and is well placed to advise you on what type of protection you might need with your extra job. Whatever the scale, you are vulnerable to risk if a customer makes a complaint, someone has an accident, or items are stolen.
Whether you are running a part time consultancy, online retail or events side business, you should engage with a trusted insurance professional to understand what vulnerabilities your extra venture might have going forward. Read on to understand the main types of insurance you need to consider for various types of business activities.
Public Liability Insurance
If your business side hustle happens to be home based and you have clients visiting, you’ll need to get public liability insurance since this activity involves direct interaction with customers, or the public, and this carries the risk of accidental injury or property damage to them.
You could decide to turn your hobby of yoga into live evening classes or start organising and hosting children’s parties at different venues. Or, you may organise a sporting event that is public-facing and again there is always the potential for someone to trip or hurt themselves in some way.
Public liability insurance covers your legal costs and compensation if someone is injured or their property is damaged during your business activities, so is absolutely vital to the smooth running of your side hustle should this be a factor.
Product Liability Insurance
It’s incredibly convenient to sell products of your own, such as crafted items, beauty products or food, and it’s paramount to protect your items from claims that your product has caused injury, illness or damage to property. Should someone, for example, complain of a skin reaction caused by your goods, product liability insurance covers the costs of legal defence and compensation so that you can continue trading without the extra worry.
Professional Indemnity Insurance
Should your side gig focus on providing professional advice, for example as a freelance business coach or web developer, you will need professional indemnity insurance. This is a must, in case any of your clients make a claim of negligence against you, relating to the services and advice you provide, that leads to financial losses for the client.
Cyber Insurance
You may attain your counselling accreditations and set up an evening consultancy. In this instance, if you are storing sensitive customer information then it’s sensible to safeguard your business from the implications of cyberattacks, data breaches or loss and other digital threats with cyber insurance.
Business Equipment Insurance
Business equipment insurance offers protection against the loss or damage of equipment and property used in the course of your operations. If your business relies on high-value equipment to function effectively, ensuring you have adequate coverage in place is essential so that you can swiftly replace items when necessary. This would apply if you have a laptop, a specialist camera or sports equipment.
How do I know if I need insurance for my business side hustle?
If any of the above insurance areas are factors you come across with your side hustle, you should get in touch with an insurer who understands the risks involved and can tell you exactly what policies you need to remain worry-free.
It’s true that if your business side hustle earns you less than £1,000 a year, then you won’t owe any tax to HMRC, but if you’re opening yourself up to risk, then you should ensure you are covered and create peace of mind.
Whatever your side gig is, do be transparent with your insurer so they can ensure you have a suitable policy that’s right for your unique situation, and as things grow, take advantage of regular reviews so that it keeps up to date with any new risks.
Launching a business or side venture from home can be incredibly fulfilling, giving you flexibility and the opportunity to create your own path doing something that might be a passion. Having the right insurance helps safeguard against unforeseen challenges while supporting long-term growth. Who knows, your side hustle might even grow enough to replace your day job one day?
If you’re unsure as to what cover you will need for your business side hustle, Sutcliffe & Co. Insurance Brokers can advise as to what cover will best protect you. Call 01905 21681 and tell us about your side business’ requirements or email enquiries@sutcliffeinsurance.co.uk
