image Insurance for the Gig Economy: Protecting Non-Traditional Workers 

Insurance for the Gig Economy: Protecting Non-Traditional Workers 

Insurance for gig workers is a topic of interest since they are responsible for securing their own policies. Non-traditional workers or one of the many independent contractors are unique clients that require a customized approach by carriers. This is a sector many in the insurance business overlook, when, in actuality, you could build a new niche for your agency. 

At Confie, we are passionate about helping industry stakeholders – and their clients – find coverage that makes sense and provides a feeling of security. 

The Rise of the Gig Economy and Its Impact on the Workforce 

The workforce has been changing slowly for years, but it really seemed to take a turn when COVID-19 hit. Many businesses shuttered, and people began working from home. When economic concerns were at the front of everyone’s mind, the transition to gig work was a logical next step. Gig work simply refers to the work of freelancers and independent contractors. In addition, these types of workers are paid per gig or job. 

Some people may pick up gig work as a side hustle. Others are embracing the gig economy wholeheartedly. Either way, the changes in the workforce call for leaders in the business to provide a highly personalized insurance package that meets the expectations of modern consumers

Unique Insurance Needs of Freelancers and Independent Contractors 

Being a gig worker means the individual does not operate within a typical business model. These workers don’t receive the benefits that most full-time employees have. This includes health and disability coverage. Furthermore, delivery drivers, such as Rideshare or Uber drivers, may need additional protections in their auto policy. The role of leadership in cultivating innovation in insurance is a key element here. 

Having some coverage is vital for gig workers since they may be financially affected by health-related issues, accidents, and more. Consequently, freelancers and independent contractors must ensure financial security by obtaining gig economy insurance. This can help safeguard against unexpected problems. 

Understanding the Risks Associated with Gig Work 

Being a gig worker comes with various risks that make securing a policy a necessity. For example, Lyft drivers may not have enough coverage in the event they are at fault in an accident. Since rideshare drivers use their own vehicles to work, the policy can be complicated. Also, Lyft insurance is limited in what it covers, making the individual responsible for any additional costs. This makes a separate policy vital. 

People who engage in freelance work must also consider health-related risks. Since they are not covered by an employer, they may not want to visit the doctor as often. However, routine doctor visits are just as important as going when people are sick. These visits can serve as a preventative for larger medical problems. This is one reason it’s important to secure a health insurance policy. 

Finally, gig workers often face a greater risk of danger. Since many are out delivering items, there is a risk of theft and accidents. 

White delivery young man holding phone on bike in a resting position smiling.

Current Insurance Solutions Available for Gig Workers 

Regulatory leadership is vital when navigating compliance in a complex insurance landscape. Delivering solutions for gig workers must be comprehensive in scope yet affordable for consumers who may be doing the extra job to make ends meet. 

Gig economy coverage takes into account the various needs of these workers. Some of the different types of coverage solutions include the following: 

  • General liability 
  • Professional liability 
  • Workers’ compensation 
  • Temporary incapacity 
  • Health 

In addition, you may find that freelancer insurance is a more comprehensive solution. This type of policy provides protection for the following: 

  • Disability (long- or short-term) 
  • Worker’s compensation protection 
  • Cyber liability coverage 
  • General liability coverage 

Future Trends in Gig Economy Insurance 

As we move towards 2025, there are no signs that this unique workforce is going anywhere. It’s advisable to look into the future and assess top trends in insurance to see which way to go next. Help clients evaluate the potential risks and challenges they may face with this type of business model. You might also consider whether you might expand your services in the future. These factors all play a role in choosing the best policy for the present and the future. 

How Confie Is Leading the Way in Gig Economy Insurance 

Our workforce is changing, allowing people to earn money in a variety of ways. One such way includes doing gig work. As a result, carriers need to assess consumers’ current policies to ensure they are protected from the added risk of such work with the right insurance for gig workers. Confie’s team is here to provide an in-depth review of the best way to accomplish this. We welcome people to discuss leadership opportunities within our organization. Contact us today or call us at (714) 252-2500 for more information.