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Mitigating Risk in a Gig Economy

One of the fastest growing economic demographics right now is freelancers. Increasingly, the internet is allowing creative and other in-demand workers to leave the traditional workforce and take the reins of their own businesses, often working from home or on the road. Ultimately, this is a great thing. It helps to build the economy, helps create value, and provides a service to those who need it. The individuals doing the work gain the freedom of working on their own time, their own schedules, and taking the work they want to take rather than whatever flies across their desk. Unfortunately, with all of these positives comes one big negative: dramatically increased risk.

In a world where, by 2020, it is projected that gig workers will comprise almost half of the labor force in the United States, personal risk is at an all-time high. Gig workers have a bad tendency to not only be uninsured but also underestimate their own risk. This all stems from a lack of education about insurance itself and how it may affect them.

There are a slew of aspects to this:

  • What changes when you are running a business out of your house? What is covered under personal insurance and what is under business insurance?

  • How does health insurance work for independent contractors?

  • How should insurance coverage be adjusted based on changes in the amount of work and the type of work being performed?

  • What industries require insurance?

  • How do things change when independent contractors work with others, outsource, or hire people?

Ultimately, there are a lot of potential pitfalls here, especially for individuals who like to do research themselves. With so many moving parts, it is essential to work with an independent agent rather than trying to do everything yourself online. It comes down to finding someone you can trust to keep your best interests in mind and who has a thorough understanding of all the situations you may be encountering.

Whether you are driving for Uber part-time or run a full-time online writing or design business out of your extra bedroom, you need to have an understanding of the risks you may be facing. Like with many things, gaining that understanding may take more time off of your hands than you even have to offer. That’s why working with a professional is essential to getting the wheels in motion and protecting yourself.

For more information or to find out what would be right in your situation, give us a call at 952-941-9418 or visit

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