Author: Kat Tretina / Source: Wise Bread
About two years ago, I launched a small side hustle dog-sitting for neighbors. It was a profitable side gig that allowed me to earn extra cash in my spare time. But one of the things I hadn’t prepared for when budgeting my startup costs was insurance for my business.
I quickly found out it was necessary. My good friend who had encouraged me to take up pet-sitting was watching a dog for a client. She must not have closed the dog’s crate all the way, because he escaped one night and destroyed the owner’s expensive silk Oriental rug. The owners took her to court, and she ended up owing them over $30,000. Because she didn’t have insurance, she was on the hook for the replacement cost herself.
Unfortunately, my friend’s story isn’t that uncommon. Many side hustlers run businesses without insurance, leaving them at risk if there’s ever an accident or error.
Whether you’re a freelance graphic designer, dog-sitter, baker, ride-share driver, or housekeeper, insurance can be an essential safeguard for your business. You might think insurance is unnecessary because your gig is too small, or perhaps you work solely from home. However, mistakes and accidents happen all the time in all industries. Here are five times you need an insurance policy.
1. You have customers visit your place of business
If you have customers visit your home or store — maybe you opened a hair salon, or you run child care services out of your house — there’s a chance your customer could get injured on the premises. The client could sue you for damages, leaving you on the hook for tens of thousands of dollars (if not millions!). An insurance policy can protect you from this liability.
2. You spend time in a customer’s home
Maybe you’re a personal assistant or you run a housekeeping business, and your client trusts you to work in their home. Even if you’re careful, it’s all too easy to knock over a precious heirloom or…
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