Insurance for gig workers

Insurance Insights | July 9, 2018

Insurance for gig workers


In recent years, the nature of work is changing. What’s known as the “gig economy” has taken off.

It involves people performing short term and temporary work. Read on to find out about some of the challenges workers are facing in this brave new economy.

Examples of gig work include ride-sharing, food delivery and freelancing to name but a few. Others include photographers, performers and entertainers.

The gig economy has created a unique set of challenges and opportunities. On one hand, it has created flexible working arrangements and greater independence for workers. Meanwhile, businesses benefit by saving costs on office space, training and salaries. They acquire the possibility of contracting with experts on a per-project basis. Whereas previously, it may have been too costly to retain these experts on staff.

But there’s also a dark side to the gig economy. Gig workers lack many of the protections of the traditional corporate workplace such as health and dental benefits. Many gig workers are unaware or unsure about the kind of protection they need in this economy.

One potential solution may lie in giving them access to information, insurance and other resources through the same means they use to conduct their work. As tech savvy app users, gig workers are well positioned to benefit from online, digital and mobile solutions. These means give insurance the kind of flexibility and convenience that gig workers have come to expect from their apps.

Insurance companies and brokers are already creating apps for gig workers to conveniently get quotes, bind policies and file claims.

As brokers, we would caution gig workers. Some recent trends are worrying. For example, one such emerging trend is known as “per use” insurance wherein a person can enable and disable their insurance through an app. If a claim occurs after they’ve tapped off on the app, they could be in big trouble.

We recommend every gig worker speak with a broker to get the right coverage. Even though it seems counter-intuitive, a sole proprietor has many of the same concerns as large businesses, just on a smaller scale. Just like a large business, sole proprietors will be dealing with customers, contractors, suppliers, regulators and so on.

Ultimately, the right coverage will make gig work safer and create peace of mind for gig workers.

Are you a gig worker? Contact us today to get the protection you need.