What Insurance Do You Need For Your Side Hustle?

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Many people today have their own “Side Hustle”. A side hustle can be working a multi-level marketing business, party sales, freelancing, or starting a micro-business. They take many forms depending on a person’s goals and time available to spend on a side hustle. A person’s goals and objectives can be just as varied as the form of business a side hustle takes. Reasons range from wanting to pay down bills, starting a new business empire, living independently wealthy, and everything in between.

• A 2017 Bankrate study shows that upwards of 44 million Americans have a side hustle.
• The Hustle found that the average side-hustler spends 11 hours per week on their secondary work, and earns $12,609 per year — an average of about $25 per hour.

One of the first things someone has to consider when starting a side hustle is protecting what you have now, and what you will have in the future. That usually takes the form of some sort of liability insurance. While it is VITALLY important to be sure you are properly covered for your liability exposures, it may not be the MOST important thing.

I need liability insurance . . . what else?

As with ANY business, you need to have some form of liability insurance in place to protect yourself against anything you can be held liable for, no matter how frivolous. It is important because you never want to be in the situation of paying tons of money in legal fees for something you may, or may not have realized they you can be sued for, and held accountable.

At C. Pina Insurance Agency, we can discuss your side hustle with you and determine the proper coverage at the best possible rates . . . many start-up micro businesses can be covered for as little as $50 a month!

• Bankrate also found that Nearly 1 in 3 side hustlers needs the income to stay afloat

So, if you still have your regular 9 to 5 and you’re starting your side hustle, NOTHING is more important than disability insurance.

I’ve been in the insurance business for more than a couple of decades, we’ve always appropriately called it insuring your paycheck because that’s exactly what it does! Most people try to skimp on this one, many think workers comp will cover them if they can make it to work. Committing insurance fraud aside, this is NOT a good plan, or a way to cover this risk, why? The truth is MOST disabilities are caused by illness, not an injury at the weekend softball game, or Tuesday night Stomp class. If you’re working your 9 to 5 AND your side hustle and “SURPRISE!”, illness hits you and you can’t work for 6 months, how do you pay your bills? Any benefits you had from your full-time job have dried up and you have no income!
I hate to sound like the duck in the national ad campaigns, but you need disability insurance for your day to day expenses!

Ok, I have liability, and disability insurance, what else?

We’re almost there . . . we’ve protected your side hustle and “stuff” you’ve accumulated with liability insurance. We’ve protected your paycheck with disability insurance, what else do you need? It’s simple, if you want to parlay your side hustle into a life of full-time self-employment, or you want to put any portion aside, permanent life insurance is a fantastic option. While life insurance does protect your family and loved ones from the financial hardship of premature death, permanent life insurance, especially with a blue chip mutual company can help you set aside money in addition to your qualified plans that you can use in retirement, even BEFORE you reach the age of 59 ½, which is when you can take money from your 401(k) or IRA without any penalties.

This is an important piece that most people don’t give enough respect to. Purchasing a cheap term insurance policy will not accomplish anything other than providing a death benefit, provided you die within a certain time period . . . you’re really gambling with an insurance company that you WILL die, otherwise you’re just giving them money. A permanent policy, like a whole life policy with a blue chip mutual company, can provide you substantial benefits for YOU to enjoy, AND still protect your family and loved ones.

There you have it!!

What is best for you? We’ll need to discuss your goals, and your side hustle to determine what can work best for you regardless of your budget. There is always a plan of action that we can take to set you on the right path. Don’t let the fear of big expenses scare you away from protecting what you are working for!

​#SideHustle #SideHustleInsurance #CPinaInsurance

Craig Pina, CPIA is the owner/agent of C. Pina Insurance Agency, a full service, independent insurance agency located in Brockton, MA for more information please contact him at (508) 557-8224, craig@cpinainsure.com