Is your side hustle insured? Why you might need business insurance

In today's economy, more and more people are turning their passions into profitable side hustles. Whether you're a freelance graphic designer, an Etsy seller, or a weekend photographer, your small venture is a business. A common mistake many entrepreneurs make, however, is assuming their personal insurance policies will cover their business activities. In most cases, they won't.

Why your homeowners or renters policy isn't enough

Standard homeowners and renters insurance policies are designed to cover personal liability and property. They almost always have exclusions for business-related activities. This means if a client slips and falls in your home office, or if your business inventory is damaged in a fire, your personal policy will likely deny the claim.

"Treating your side hustle like a real business means protecting it like one. That starts with the right insurance."

Key types of insurance for side hustles

You don't necessarily need a complex, expensive policy. Often, a simple Business Owner's Policy (BOP) is a great start. It typically bundles two essential coverages:

• General liability insurance: This is the cornerstone of business protection. It covers you if your business operations cause bodily injury or property damage to a third party (like a client or vendor).
• Business property insurance: This protects the equipment and inventory you use for your business. It covers items like your work computer, camera gear, or the products you sell, whether you store them at home or elsewhere.

As your side hustle grows, you might consider other coverages like professional liability (errors and omissions) insurance, especially if you provide services or advice. Taking the step to insure your venture is a sign of a true professional and provides the peace of mind needed to focus on growth.