The new Gig economy is radically shifting how people live and work as people embrace freelancing and flexibility. Gig workers are contractors who can jump from one client to another and will often find work through large networks that make it easy for a client to find people with the right skills. Being able to quickly change between work and leisure, as well as being able to work from anywhere, has become very appealing to people who enjoy travel or need flexible scheduling.
Personal Insurance Is Not Enough
To get this flexibility, people who work in the Gig economy work as contractors. As a contractor, you’re often using your personal property to provide services for others, but that doesn’t mean that your personal policy, like personal auto insurance, will extend to work that you do while on the clock. There are a few insurance policies that can help.
Third Party Liability Insurance
Whether you’re a rideshare driver, dog walker, or working in on-demand delivery, regular insurance coverage in the gig economy is not enough to protect yourself. In some cases, providing these sorts of services will make you ineligible for personal insurance coverage. To avoid this issue, you will need insurance that offers third party liability coverage. For instance, if you injure others when you’re working, third party liability insurance will give you the coverage you need.
Ridesharing Insurance
Some insurance companies are now offering policies that work specifically for ridesharing. These policies can integrate directly into your ridesharing account, dynamically shifting your policy as needed between the personal driving and ridesharing modes. As ridesharing becomes more popular, more insurance companies may start offering this form of coverage.
There are 3 insurance periods related to ridesharing. A period is simply a period of time when you are actively driving your car for a specific purpose. Most drivers have a personal auto policy that covers the most common period – Period 0: when you are driving for personal use. All other periods relate to ridesharing:
Period 1: The ridesharing app is open and online, but you haven’t accepted any rides yet. Third party liability insurance is required.
Period 2: You received a request from a rider and are on the way. Third party liability insurance is required.
Period 3: The rider is now in your vehicle and you’re driving to their destination. Third party liability insurance is required.
Gap Insurance
Gap insurance is another way to achieve part of the coverage you will need as a rideshare driver. Gap insurance only extends your coverage to include Period 1, listed above. Make sure that if you opt for this, the ridesharing company you drive for has an insurance policy that includes the other 2 periods.
Liability Insurance
Even if you’re not a driver, there are situations where you might unintentionally damage somebody else’s property, reputation or health. For all of those other potential pitfalls, liability insurance will be there to cover damages, legal defense fees and settlements if you are found at fault.
Gig work is a new and exciting way to do things the way you want. Just because you’re not tied to a company doesn’t mean you have to be left in the lurch when a problem arises. To discuss limits and specifics of which policies work best for your situation, contact TJ Woods.
