By Moira Bocrie and Debbie Parrish
Over the past few years, I’ve had more and more clients ask me about insurance for their side businesses – and most are shocked to learn that their existing policies don’t offer the protection they assumed they had. Whether you’re selling homemade goods online, running a small photography business, delivering for a food service, or renting out a room on Airbnb, a side hustle is a great way to bring in extra income. But without the right insurance, your personal finances could be at serious risk.
Take homeowners insurance, for example. Many people assume that if they run a business from home, whether that’s selling products on Etsy or tutoring students, their home insurance will cover them. Unfortunately, most standard policies either exclude business-related claims altogether or provide very limited coverage. If a client visits your home for a meeting and gets injured, or if a fire destroys the inventory you store in your garage, you could be left paying for those losses out of pocket. That’s why I always recommend reviewing your policy with your agent and considering a home-based business endorsement or separate business coverage.
Auto insurance presents another major gap for side hustlers. If you’re using your personal vehicle for work – whether that means delivering food, driving passengers, or transporting goods – you should know that most personal auto policies exclude business use. I’ve seen people get into accidents while making deliveries, only to find out their insurance won’t cover damages because they were using their car for work. The solution depends on the type of driving you do, but in many cases, a commercial auto policy or rideshare insurance is necessary.
Then there’s liability – one of the biggest risks people overlook when they start a side hustle. If you sell products like skincare, candles, or jewelry, you could be held legally responsible if a customer claims your product caused harm. If you provide a service—such as consulting, coaching, or event planning—a client could sue you for financial losses caused by a mistake or bad advice. Without business liability insurance, those legal costs could come directly out of your pocket. Even a small claim can add up quickly, and most people don’t realize the risk until it’s too late.
The good news is that protecting yourself doesn’t have to be complicated or expensive. A side hustle is still a business, and even if it’s small, it carries risks. That’s why I always encourage people to sit down with an insurance professional to review their policies. Sometimes, the fix is as simple as adding an endorsement to an existing policy, while other times, a separate business policy is the best option. Either way, taking the time to ensure you’re properly covered now can save you from major financial headaches later.
If you’ve started a side hustle – or are thinking about it – let’s talk about your coverage. It’s better to ask the questions now than to find out after something happens that your insurance doesn’t cover it.