It is estimated that the UK’s growing self-employed and side hustler movement will contribute up to £125 billion to the UK’s post-Covid economic recovery this year.
Before the pandemic, the Office of National Statistics (ONS) stated that over 1.1. million people in the UK were either employed in two jobs or self-employed in addition to having another job. Covid-19 has since accelerated the growth of workers starting a ‘side hustle’, with changes in employment circumstances and lifestyles pushing more and more people to work for themselves – either through choice or out of necessity after being furloughed or made redundant.
The total number of self-employed workers in the UK is now over five million, which accounts for 15% of the UK’s workforce.
Most popular side hustles
A side hustle can be anything from a hobby you can do in the evenings that helps to make a bit of extra money, such as crafting, to becoming a fast-food delivery rider during your spare time. Some popular side hustles include:
- Freelance writing – set up profiles on freelance websites and be found by businesses looking to outsource the writing of blog posts, web content and so on.
- Selling crafts – platforms such as Etsy allow you to sell things you create in your spare time, such as candles, pottery, jewellery, embroidery, greetings card – just about anything really.
- Hair and makeup stylist – many hair and makeup artists have begun producing video tutorials to help people during lockdown.
- Wedding photographer – if you are a keen photographer, you could start offering your services for weddings and other events during the weekends.
- Freelance designer – if you know your way around Photoshop you could develop a lucrative side hustle designing logo’s, websites, infographics, PowerPoint presentations etc. for businesses
Why you might need insurance for your side hustle
Regardless of how much you are earning through your side hustle, there are many reasons why you might want to consider some form of business insurance policy:
Your home insurance policy might not provide cover
Many entrepreneurs who run a side hustle don’t think that insurance is necessary as they believe their home insurance policy will provide the cover they need.
Although you may be working from home on your side business, it is likely that your home insurance policy will not cover your day-to-day business activity – which could leave you financially exposed if anything happens to your business equipment or if you damage a client’s property.
You could be sued even if you’ve done nothing wrong
A customer or client of yours can sue you if they are not happy with your work. Even if their claim has no merit it can cost you both time and money to defend yourself.
For example, if you are working as a marketing consultant as your side hustle and the strategies you recommend do not produce immediate results, your client could make a claim as you failed to deliver the services promised.
In this type of scenario professional indemnity insurance could help protect you and not leave you having to defend the claim yourself.
Stuff happens that you can’t always control
From members of the public tripping over your equipment and injuring themselves, to your home office being broken into and your laptop, cameras etc. being stolen – accidents happen all the time and it’s important that you protect yourself against these risks.
Public liability insurance, for instance, can help cover you if you cause third party injury or property damage, so if your side hustle involves meeting people or working in public then this should be a consideration.
Equipment insurance can help protect your business equipment – which could be anything from a laptop and tablet to specialist cameras, sound recording equipment, makeup kits, design tools and more. At Create Insurance we offer equipment cover up to the value of £50k to make sure all your essential work equipment is covered.
Why you might need insurance for your side hustle
No matter how small your income is from your side business, and even if you don’t even consider it a ‘business’, if you are selling a product or service then it is a good idea to protect yourself against any potential risk.
It may sound a bit daunting to think about ‘risk’, but it’s fairly straightforward – just think of any accident that could happen or action you could take in relation to your side hustle that could result in you being financially out-of-pocket. This could be anything from losing your laptop to a client suing you for breach of contract.
Examples of the types of insurance you may need for your side hustle include:
- Public liability
- Equipment insurance
- Professional indemnity insurance
- Product liability insurance
- Property and contents insurance
- Cyber insurance
To learn more about what insurance you may need, read our guide: Freelance insurance – a complete guide to the insurance products a freelancer might need
Freelance insurance tailored to you
Create Insurance offers specialist insurance cover for freelance photographers, designers, artists and more – get instant cover on public liability, professional indemnity and equipment insurance.