Do You Need Side Hustle Insurance?

These days, it feels like everyone’s got a side hustle on the go. And for good reason! With 43% of people in the UK now earning a bit of pocket money through a second income stream, side hustles have become a huge part of working life. From dog walking to graphic design, these ventures can bring in an average of £900 a month, which certainly isn’t something to sniff at.

But with that extra cash comes extra responsibility. That’s where side hustle insurance steps in. In this guide, we’ll walk you through what insurance for side jobs actually means, whether you need it, and how to find the proper protection without breaking the bank.

What is a Side Hustle?

A ‘side hustle’ is any way of making money outside your regular 9 to 5. It could be:

• Selling homemade candles on Etsy

• Running a brownie business from your kitchen

• Offering freelance copywriting services

• Coaching a sport on evenings and weekends

Whatever it is, a side hustle gives you the flexibility to earn on your own terms - whether it’s for saving, investing or just a little extra breathing room before payday.

Is a Side Hustle a Business?

It depends. If you’re making a few quid here and there, amounting to less than £1,000 a year, HM Revenue & Customs (HMRC) won’t treat it as taxable income - thanks to the Trading Allowance. But if your side project is more lucrative, even if it’s part-time, the taxman may see it as a business.

You should check out this guide on side hustle tax to ensure you're staying on the right side of the law.

Why Side Hustle Insurance Matters

Let’s face it: things can go pear-shaped. Whether it’s a customer complaint, a broken laptop or someone tripping over your stuff at an event, insurance for side jobs gives you a safety net so you don’t have to foot the bill alone.

Here’s what side hustle insurance can protect you from:

1. Liability Issues

You could be liable if someone gets injured or their property is damaged because of your work. Public liability insurance can step in to cover legal costs and compensation.

2. Damage and Theft

Do you use an expensive camera, laptop or power tools to do your job? If they’re lost, stolen or damaged, equipment insurance can help you get earning again quickly.

3. Complaints and Errors

If you offer consultancy or professional services, an upset client might claim your advice caused them financial harm. Professional indemnity insurance helps protect your reputation and bank balance if a misjudgment turns into a claim.

4. Meeting Requirements

Some clients won’t work with you unless you prove you’re insured. Having the right cover not only ticks that box but also demonstrates your professionalism and helps to build trust.

Does Your Side Hustle Need Insurance?

Side hustles come in all shapes and sizes, so insurance for side jobs isn’t one-size-fits-all. Ask yourself:

Do I interact with clients in person?

If yes, consider public liability insurance.

Do I offer advice or services professionally?

Then professional indemnity insurance could protect you if something goes wrong.

Do I sell physical products?

Consider product liability insurance in case a product causes harm.

Remember, even if your side hustle is a small passion project, risks don’t discriminate. Insurance is about peace of mind, not just ticking boxes.

Types of Insurance for Side Jobs

Let’s break down the most common types of insurance for side jobs:

Professional Indemnity Insurance

Covers: Legal fees and compensation if a client claims your work caused financial loss.

Example: You’re a freelance web designer, and your client says a tiny mistake in your coding has broken a checkout function that cost them a week’s worth of revenue. Professional indemnity covers the fallout.

Public Liability Insurance

Covers: Injury or property damage claims from third parties.

Example: You’re a part-time yoga instructor at weekends. A client trips over your yoga mat during a session in the local park and breaks their wrist. Your insurance could cover any medical bills or legal claims.

Product Liability Insurance

Covers: Injury or property damage caused by your products.

Example: A customer has an allergic reaction to your handmade soap, leaving them with a nasty rash. Product liability steps in to help you cover legal and compensation costs.

I Work from Home. Does My Home Insurance Cover Me?

Not quite. Most home insurance policies don’t cover business-related activities. If your work laptop breaks while you’re doing freelance work, or a client injures themselves at your home, your standard home insurance could refuse to pay out.

That’s why it’s worth getting dedicated side hustle insurance tailored to your activities.

How Much Does Side Hustle Insurance Cost?

Costs for insurance for side jobs vary depending on:

• The type of cover you need

• The level of risk involved

• Where you’re based

• Your previous claims history

For most small businesses and side hustlers, the affordability of coverage can be a pleasant surprise. You can compare small business insurance to find a plan that suits your needs and budget.

Is Side Hustle Insurance a Legal Requirement?

Not necessarily, especially if you’re a solo operation, but that doesn’t mean you should skip it. Just because it isn’t required by law, it doesn’t mean it isn’t valuable.

If you’re hiring staff, though, employers’ liability insurance is legally required in the UK.

Should You Get Side Hustle Insurance?

If you’re getting serious about your side hustle, whether you’re just getting started or already earning a decent chunk, then the answer is a resounding yes!

From legal cover to tech protection, side hustle insurance gives you the breathing space to grow your business confidently, knowing you’re prepared for the worst. And with more people turning their passions into income streams, it’s never been more important to treat your side hustle professionally.