The gig economy has been booming, and it’s no surprise why. From delivering food to designing logos, gig workers are reshaping the way we think about work. Whether you’re driving for Uber, freelancing on Upwork, or crafting art to sell on Etsy, gig work offers flexibility and independence that traditional jobs often can’t match.

But with all that freedom comes a question many gig workers don’t think about until it’s too late: what happens when things go sideways?

Let’s unpack the risks of the gig economy and explore insurance products tailored to protect gig workers, freelancers, and independent contractors.

What is the gig economy?

The gig economy is a fancy term for work that isn’t your typical 9-to-5. It includes temporary, flexible jobs often facilitated by digital platforms like DoorDash, TaskRabbit, and Fiverr.

Roughly 36% of Americans earn money through online gig platforms, and this trend is only growing.

The appeal is clear—gig work lets you call the shots. Want to work early mornings or late nights? You got it. Prefer to take a break during the day to hit the gym? No problem. But while the gig life is freeing, it doesn’t come with the safety net of employer-provided benefits like health insurance or workers’ comp.

The risks in the gig economy

Every gig worker knows that while freedom is great, it comes with risks.

1. Lack of traditional benefits

Most full-time employees get perks like health insurance, paid time off, and retirement plans. Gig workers? Not so much. If you get sick or injured, you’re on your own.

2. Injury on the job

Think about rideshare drivers. A car accident while working could leave you with repair bills, medical expenses, and lost income. And no, your regular auto insurance usually won’t cover it if you’re on the clock for a gig app (or it will cover it once before canceling the policy or forcing an endorsement).

3. Income uncertainty

Gig work can be feast or famine. One week, you’re rolling in jobs and the next? Crickets. Without a steady income, it’s tough to handle unexpected expenses.

4. Liability risks

Let’s say you’re a freelance photographer and a client trips over your equipment. If they sue for damages, you could be out thousands of dollars if you don’t have liability insurance.

On top of that, the damage to your equipment—potentially requiring a costly replacement—might have you wishing for the stability of a regular 9-to-5 job instead.

Insurance products for gig workers

The good news? There’s insurance out there designed just for gig workers. Let’s break it down:

1. Health insurance

Health insurance is a must, and while it’s not handed to you on a silver platter in the gig economy, there are options:

• Marketplace health plans: The Affordable Care Act (ACA) provides plans you can buy on healthcare.gov. These plans might even come with subsidies to lower your premium costs.
• Stride Health: This company partners with platforms like Fiverrto help gig workers find affordable and flexible health insurance plans tailored to their needs.

2. Liability insurance

When you’re your own boss, you’re also your own risk manager. Liability insurance can save you if you accidentally damage property or someone sues you for negligence.

• General liability insurance: Great for freelancers like writers, graphic designers, or consultants.
• Professional liability insurance: Perfect for anyone providing a service, like a tax preparer or web developer, to protect against claims of mistakes due to error and omissions (E/O) or unmet expectations.

3. Auto insurance for rideshare and delivery drivers

Regular car insurance won’t cut it if you’re driving for work. Many companies offer rideshare insurance endorsement, which covers you during that in-between time when you’re waiting for a fare or delivery request.

A recent study by the Journal of Safety Research revealed that one-third of rideshare drivers have experienced accidents while on the job, highlighting their significantly higher risk exposure compared to regular drivers.

4. Disability insurance

What happens if you’re injured and can’t work? Disability insurance provides a portion of your income while you recover. This is crucial for gig workers, who don’t have employer-provided sick leave.

5. Income protection insurance

For gig workers whose income fluctuates, income protection insurance helps fill in the gaps. It’s a smart safety net for times when gigs are slow, like during a market downturn or a seasonal dip.

6. Business insurance bundles

Some companies like Insureon and Next Insurance offer insurance packages tailored for gig workers. These bundles may include a mix of health, liability, and property coverage.

Wrapping it up

The gig economy gives you freedom, but freedom doesn’t mean you should go unprotected. Whether you’re freelancing, delivering, or running your own business, insurance can save you a world of trouble when life throws you a curveball.

From finding health coverage through companies like Stride Health to ensuring you have rideshare auto insurance, taking the time to safeguard your work can keep your gig career on track.