Could your side hustle hurt you?

Many people right now have a side hustle.  Side hustle as defined by Merriam-Webster is “work performed for income supplementary to one’s primary job”.  Side hustles can be a great way to earn extra income to do the things you want to do in life.  The downside could be that a majority of people do not think about insurance when they start a side hustle.  Starting a side hustle could mean that you need to change your auto coverage or start a commercial insurance policy.  One of the largest side hustles is driving for a ride sharing service. 


Does your personal auto policy cover you while you drive for a ride sharing service?  Many companies exclude livery service on their policies.  Livery service is using an auto to transport passengers for a fee.  This is why taxi services have their own commercial policies.  Insurance companies though currently are unsure how to treat ride sharing.  Currently some companies exclude ride sharing.  There are some companies however that will cover ride sharing services under a business use endorsement.  The best thing to do is check with your company to see if ride sharing is covered.  We would also be happy to help you look into what you need when driving for a ride sharing service. 


What if your side hustle isn’t driving for a ride sharing service?  Are you in the clear?  You still would have a need to talk to an agent and evaluate your risk.  If you go to other people’s homes or business you would still have a need for insurance coverage.  You could be liable for a slip in fall or damage to someone else’s property.  In the case of someone coming to your home, there could be exclusions in your homeowner’s policy that would deny any claims.  Some homeowner’s policies will allow you to make an endorsement to cover a home base business.


Finally, does your side hustle find you providing services for someone or giving them advice or consultation?  This side hustle could require you to have professional liability coverage.  This would be something that you would not be able to endorse on a homeowner’s policy.  If personal training is your side hustle this would be the coverage you would need.   


Side hustles are a great way to make extra money but there are risks involved.  This post just touches on some of the issues with insurance.  A complete review of your current insurance and your side hustle would be the best way to protect yourself and your future.  Use our expertise and experience to help you decide what coverages would be best for you.