Business Insurance for Side Hustles: Do You Really Need It?
Do Side Hustles Really Need Business Insurance?
Side hustles are booming in 2025, from freelance design and ecommerce to dog walking and mobile detailing. But as your gig grows, so do the risks. Whether it’s a customer slipping on your property or a data breach hitting your online store, business insurance could be the one thing that saves your side hustle from becoming a costly liability.
If you’re earning money outside of a traditional employer, you may need some form of business insurance — even if it’s part-time or online-only.
Common Side Hustles That May Require Insurance
- Freelancers: Writers, designers, marketers, and consultants may need professional liability insurance to cover client disputes or copyright claims.
- Handymen or cleaners: Physical work around client homes requires general liability for injuries or property damage.
- Online sellers: Etsy, Amazon, or Shopify sellers should consider product liability and shipping protection.
- Photographers or videographers: Expensive gear and event contracts often need equipment and liability coverage.
- Pet services: Walkers, groomers, or sitters are at risk for pet injuries or property damage while working.
If your work involves clients, gear, or personal data, you’re exposed to legal and financial risks — even if it’s a small side income.
Types of Business Insurance Side Hustlers Should Consider
Not all coverage is necessary for everyone. But here are the most common types of business insurance for gig workers and side businesses:
- General Liability: Covers third-party injuries, property damage, and lawsuits — ideal for service providers and home visits.
- Professional Liability (Errors & Omissions): For freelancers and consultants facing claims of negligence or unsatisfactory work.
- Business Equipment Insurance: Protects your tools, cameras, laptops, or inventory from theft, fire, or damage.
- Cyber Liability: Crucial for anyone handling client data, operating online stores, or collecting payments online.
- Business Owner’s Policy (BOP): A bundled option that combines general liability and property insurance at a discount.
How Much Does Side Hustle Insurance Cost?
Fortunately, insurance for side businesses is often affordable. Here are some average monthly costs:
| Coverage Type | Estimated Cost/Month | Best For |
|---|---|---|
| General Liability | $20–$45 | Service providers, pet care, gig workers |
| Professional Liability | $25–$50 | Freelancers, consultants |
| Equipment Insurance | $10–$30 | Photographers, creatives |
| Cyber Insurance | $15–$40 | Ecommerce, web-based gigs |
| BOP (bundle) | $50–$90 | Multi-coverage for small businesses |
Factors like your state, income, and coverage limits will affect pricing — but many plans can be written to fit your side income level.
Where to Get Side Hustle Business Insurance
Many insurers now cater specifically to side hustlers, gig workers, and freelancers. Top platforms include:
- NEXT Insurance – Fast quotes and affordable gig policies (Affiliate)
- Hiscox – Custom plans for freelancers and consultants (Affiliate)
- Thimble – Hourly, daily, and monthly on-demand coverage (Affiliate)
- BII Brokers – Small business marketplace with comparison tools
Quick Checklist: Do You Need Insurance for Your Side Hustle?
Use this checklist to decide if insurance makes sense for your side business:
- ☐ Do you work with clients or go to their homes?
- ☐ Do you use expensive gear or store inventory?
- ☐ Do you handle payments, client data, or operate online?
- ☐ Could your work result in harm or financial loss to others?
- ☐ Are you signing contracts or collecting deposits?
If you checked even one box, it’s worth looking into small business coverage tailored to your gig.
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