Working a side hustle? Do you really need insurance?

Over the last few years, we have seen an uptake of people turning their passion or hobbies into a side hustle. Considering the constant increases in our general living expenses, more of us are left with no option, but to find a secondary income source. Working nights and weekends to pay off the mortgage, save for a long-overdue holiday, or just as an escape, the reasons why people work a side hustle are endless.

Setting up a side hustle often requires just as much planning and preparation as a full-time business. When spending your time and money purchasing equipment, ordering supplies, and marketing activities, you might be tempted to save money by not purchasing business insurance. After all, it’s just a few extra hours each week, what are the chances that anything will go wrong?

Well, the reality is that being a small business owner, you face similar if not the same risks in your side hustle that any full-time business owner does. You can be sued by a customer or client if anything untoward happens to them because of their dealings with you or the court may award damages against you for breaching your duty of care to a customer.

Paying compensation, along with the associated legal and medical expenses, in connection with a settlement can be financially devastating for any uninsured business owner. You may even be forced to sell your home, vehicle, or other personal assets to cover the costs.

Types of business insurance

Having the right type of insurance cover for your side hustle will give you peace of mind, knowing you are protected against the loss or damage from claims made by clients. Here are the major insurance covers that small businesses should consider:

Professional Indemnity Insurance

This may protect your business against loss or damage arising from a claim made by your client alleging they have suffered a financial loss as a result of your negligence or a breach of professional duty in connection with the services you have provided.

Public Liability Insurance

Small, medium and large businesses should always consider their Public Liability Insurance requirements. This cover is designed to offer protection against loss or damage from claims for personal injuries and property damage sustained by your clients when dealing with your business/side hustle. 

Products Liability Insurance

If one of your customers suffers personal injury or even property damage from the products you have sold and you are at fault for the injury or damage, Products Liability Insurance can cover you for the compensation, legal and medical expenses you may be liable to pay the customer.

AUZiInsurance has cover for your side hustle

The three types of insurance listed above are all staple business insurance covers. Some insurers offer packages that have been tailored to protect the interests of specific business types. For example, AUZi Insurance, who are coverholders for Berkley Insurance Australia.

When preparing their product lines, AUZi looks at niche handmade businesses. During their ongoing investigations, they gain an understanding of each industry and the everyday risks. Becoming the industry leaders in these fields. 

Need insurance cover for your side hustle? Jump onto AUZi’s quick and easy online system or speak with one of the committed Brokers at AUZi today.

Important Notice

Berkley Insurance Company ABN 53 126 559 706 t/as Berkley Insurance Australia (BIA) is an APRA authorised general insurer. AUZi Pty Ltd ABN 26 131 562 000 AFSL 344231 has a binding authority from BIA to issue certain insurance on its behalf. Information provided is general only and has been prepared without taking into account any person’s particular objectives, financial situation, or needs. Insurance is subject to terms, conditions, limits, and exclusions. Underwriting criteria applies. When making a decision to buy or continue to hold a financial product, you should review the relevant Policy Wording.