Ceri Austin 
Gig workers need to be mindful of balancing the need for adequate insurance cover with the utility of paying monthly insurance premiums on variable levels of income, while an insurance agent can ease this process through identifying what works best, given their individual circumstances.
They have to go into this dense jungle of options and policies with hundreds of pages of difficult reading, that detail policy specifications, without employer-provided health insurance.
Liability Insurance
Drawing in greater numbers of people to gig work may be the bait, but its specific risks also need to be understood and anticipated by workers for whom this is the new ‘normal’, before they incur some hefty costs. Personal and business liability insurance can help workers who want to take a proactive stance in managing these risks, for example by putting an insurance plan in place.
Remember too that for gig workers who travel as part of their jobs, specialty insurance will cover not only for losses to expensive equipment or valuable files that can jeopardise their income, but also for rental car liability and loss of use coverage. These coverages are not included in renters or homeowners insurance policies and generally require an independent insurance agent’s guidance to acquire.
For part of their gig economy benefits package, having health insurance can help to recruit and retain talent. Providing personalised coverage catered to the lifestyle of the gig worker, the independent agent can empower people to make better decisions, and also reduce costs while guaranteeing quality healthcare services.
Business Owners Policy (BOP)
For those gig workers who provide transportation services, a company that they work for may want them to get commercial auto insurance. This especially helps those gig workers who ride around themselves or clients in a car that they own. This insurance covers the gap in coverage from personal to company vehicle or when using their car(s) for business, instead of pleasure.
The third layer of protection provided by the insurance policy is professional liability coverage: A professional liability protection plan may appear under various names depending on the industry. This plan provides protection against litigation resulting from certain professional errors or omissions by the worker who is subject to the policy of protection. Professional liability coverage refers to proceedings commenced against an insured professional due to alleged errors and omissions in the performance of his/her job.
With inherent and risky aspects to freelance and gig work, it is critical for those the welfare of themselves and their dependents by being proactive in the creation of their insurance portfolios. From health to specialty insurance like commercial auto policies, an agent can be invaluable in assessing needs and making smart choices to protect financial wellbeing.
Commercial Auto Insurance
One area where the rise of the gig economy is also fostering the need for a more individualistic insurance product is in finding specialised cover tailored to meet the particular needs of the individual. Besides the standard forms of loss for the temporary worker, such as a loss of income and equipment, the employer faces a wider range of potential exposures and should develop strategies and procedures to mitigate those exposures. Those issues can be addressed by a specialist insurance agent.
For gig workers who are delivering goods or services while on-the-go, commercial auto insurance can be helpful as it provides coverage for damage that occurs during operation, whereas a standard personal auto policy usually covers driving only for recreation, or while the app is not ‘on’ (when the driver is not picking up passengers, making deliveries, etc).
Commercial property insurance might also be needed for the home-based gig worker who uses a laptop, cell phone or other equipment as part of his or her business on the premises, because this exposure is generally not provided in renters’ or homeowners’ insurance policies. An independent agent is a key part in this process because he or she will shop and compare these special options to those available to you. Your coverage needs can also change, so it’s important to review your needs on a regular basis. Professional or personal events may trigger a major change in your insurance needs.
Worker’s Compensation
Workers’ compensation provides payments to a worker injured on the job – and people in freelance and contractor jobs, much of the current gig economy, generally don’t have this protection as it stands now; as peer workers’ insurance is formulated to match developing labour practices in this new economy, the question of what form it will take for freelancers and other vulnerable gig workers is a source of much debate among policymakers and underwriters.
The experts we talked to agreed that bringing more workers under the umbrella of employees, and thus forcing employers to provide workers’ comp, would likely expand the market – but whether that actually happens remains to be seen, in light of shifting state and federal laws.
Gig workers need to know what insurance responsibilities employers have and it is in the financial interest of employers to be explicit about it, so they are not on the receiving end of a costly lawsuit. From the perspective of employers who want to build a productive and resilient gig workforce, clarity about mandatory insurance is key.
