Did you know that 25% of Americans have a side hustle business? That number equates to 57 million people looking to make additional income from a side business.
And while so many Americans are doing what they can to provide a valuable service to their communities in hopes of growing their bottom line, many are leaving themselves exposed to both personal and business liability by not having the proper insurance.
The number of side hustle owners who are going without having insurance is huge, as it is estimated that only 12% of these small business entrepreneurs have insurance coverage.
The reason most of them go uninsured is that the simply think they don’t need it.
The fact is…
YOU NEED TO INSURE YOUR SIDE HUSTLE!!!
Especially when you consider that 61% of part time businesses make less than $10,000 per year, any claim against you or your business could send you spiraling into bankruptcy.
Especially with new side hustle apps and services like Lyft and Airbnb, you need to consider all of the risks that you could face before you make the mistake of not having coverage for your side business.
Also Read: 15 Types of People Who Need Umbrella Insurance
What If You Run A Side Business From Home?
Many people who want to earn a side income decide to take on a “make money from home” approach to cut down the costs of their new side business.
Typically, they mistakenly believe that their homeowners insurance will cover them in case of liability.
In most cases, insurance companies do provide personal liability coverage with a homeowners insurance policy, but they tend to deny claims stemming from any business activity, whether from a home business or otherwise.
What If Your Side Hustle Is Online?
Selling from a website as a side hustle is something that has only gained popularity over the last 20 or so years. The legal system and governments have been slow to keep up with the rate of growth and change that the internet has created.
One of the things that has not kept pace is taxation, simply because the internet creates the ability to have an international supply chain with a very low overhead that can be set up with almost no budget over a weekend.
However, as we spoke about in an article about the dropshipping business, there are still dangers in having a side hustle online and not having the proper insurance.
If you’re customer receives a defective product, you could be liable for any and all injuries and claims brought against you by them. Without proper insurance, you would be looking at potentially coming out of pocket for court cost, hospital bills and damages.
It just doesn’t make sense to risk your financial well being to save a few hundred bucks a year.
Get Side Hustle Insurance Today
If you are operating a side business and need insurance call us immediately to get covered. You can also get an online quote here.
Even if you don’t think you make enough to need to insure your side business, having a basic general liability policy for you business could protect you from the risk of losing your personal assets.
Don’t risk it. Insure your Side business with the right coverage asap.