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as gig worker, you are essentially a self-employed person who provides your services on a freelance or contract basis. The gig economy offers great flexibility, but it also means you don’t have the same protections as traditional employees. That’s why it’s important for gig workers to have the right business insurance.
Without proper insurance, you can: Personally You are responsible for any injuries, property damage, or professional errors that occur while working at a gig. If you aren’t properly insured, the cost of a claim can quickly wipe out your savings. Here are the main types of insurance that gig workers should consider.
Business General liability insurance
This provides protection if someone is injured or their property is damaged as a result of your business operations. For example, if you are a house cleaner and spill coffee on a client’s expensive carpet and stain it, the repair and replacement costs will be covered by general liability.
most gig workers should have done At least $1 million in general liability insurance is required and costs between $300 and $900 per year, depending on the profession and location.
Business professional liability insurance
This is also known as Errors & Omissions (E&O) insurance, and it protects you if a client claims you mishandled or were negligent in your work, causing financial loss. This is essential for gig workers who provide professional services such as consulting, IT support, and accounting.
a General policy execution For freelancers, this ranges from $500 to $1,000 per year, but can be increased if you need more advanced coverage.
Business Worker’s compensation insurance
If you are injured on the job, workers’ compensation provides medical insurance and replaces lost wages while you recover. This is legally required for many contractor roles, including construction, delivery driving, and moving/transportation services.
Costs vary widely by state, occupation, and salary amount; Usually the following $1,000 per year for solopreneurs.
Business where to buy insurance
Fortunately, there are insurance companies and brokers that specialize in affordable insurance specifically designed for self-employed individuals, freelancers, and gig economy businesses. Here are the top options with consistently high customer satisfaction:
Explore and compare quotes, coverage, and support to find the right policy for your gig work and budget. Having the right insurance gives you important protection and allows you to grow your freelance business with confidence.
for many, Here are the best retirement accounts For self-employed people.
Meredith Dietz
senior finance writer
Meredith Dietz is a senior finance writer at Lifehacker. She earned a bachelor’s degree in English and Communication from Northeastern University, where she graduated as the university’s valedictorian. She grew up as a waitress at her family’s restaurant in Wilmington, Delaware, and she worked at Hasbro Games, where she created the rules for new games. Previously, she worked in the nonprofit sector as a leadership resident at Harpswell Foundation in Phnom Penh, Cambodia. She then served as travel coordinator for a study abroad program tracking the rise of fascist propaganda across Western Europe.
Since then, Meredith has worked to make personal finance more accessible and address the taboo of openly talking about money, including debt, investing, and saving for retirement. Outside of her financial writing, Meredith is a marathon runner and stand-up comedian, and is a regular contributor to The Onion and She Reductress. She Meredith lives in Brooklyn, New York.
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