Why Gig Workers And Freelancers Should Get An Insurance

Working as a gig or freelancer means that a company does not employ you. You are not eligible for the same benefits as other employees, like health insurance, retirement savings plans, and paid time off. This can be problematic if you become injured or ill during work hours.    

Consequently, it’s crucial to protect yourself by getting an insurance policy. This way, you may relax and enjoy the independence of freelancing without worrying about the potential financial losses associated with such possibilities.

That said, here are some viable reasons why a gig worker or freelancer like you must get insurance:

1. You Need To Have Cash For Medical Treatments

Medical bills can be expensive, especially if you get sick and end up hospitalized for a long time. It’s also possible to pay out of pocket for prescription drugs and other medical expenses like doctor’s visits, laboratory tests, or physical therapy. This can be challenging if you’re a freelancer because your employer isn’t providing you with health insurance. 

But if you already have gig economy insurance, you won’t have to worry about your medical bills. For instance, if you’re diagnosed with diabetes and need continuous treatment, then your insurance will cover the cost of your care. As long as your policy is in good standing, it should cover all your medical expenses, including prescriptions and emergency services.

2. You Must Be Able To Pay Your Monthly Expenses

As you get into the freelancing business, you might have bills you’re expected to pay monthly. These might include internet, rent, electricity, water, and even gadget bills. These costs can be costly, and you’ll need a certain monthly amount to pay them off. If you fail, you might get sued by your landlord or lose access to these utilities.

So, if you want to stay afloat while earning income from freelancing, ensure that you have enough money to cover these costs. Insurance policies can help you in this situation. Instead of borrowing funds from family or friends, you can pay these bills even if you don’t have a client for an entire month. Your financial stability is guaranteed, thus keeping your spirits high when finding new clients.

3. You Have To Protect Yourself Against Faulty Claims

While working as a freelancer, bad clients may take advantage of you. For instance, they may delay payments or make excessive requests for alterations to the project. In these instances, proving that the client was at fault may be tricky because they might accuse you of not being a professional.

Ideally, you want to ensure that your clients follow through with their promises and deliver on what they promise, which means you must protect yourself in case something goes wrong. This is possible if you have an insurance policy which covers this situation. This way, if a client defaults on payment or changes their part of the contract without paying extra or less than what was agreed upon, they will be held liable and required to compensate you accordingly.

4. You Need To Secure Yourself Against Travel Accidents

Work-related travel frequently increases one’s risk of being injured in an accident. It can cause you to get hurt, which could jeopardize your employment. This is highly problematic and time-consuming, especially when travelling internationally.

This is why taking out insurance coverage for these incidents is vital. If something happens to you while you’re out on business, the insurance will take care of it. This ensures that your insurance will cover the costs if you are involved in an accident while driving or flying.

5. You Have To Protect Your Work Space Against Disasters

You must invest in your own equipment and workspace when working as a freelancer or a gig worker. However, disasters like floods or fires might happen at any time. If all of your equipment and supplies are destroyed, this can be disastrous for your income stream. 

Thus, you must consider protecting yourself against these disasters and ensure you have insurance to cover these losses. Instead of paying for these damages with your money, your insurance company will reimburse the funds to you. This means you can continue freelancing without spending on workspace and gadget replacement.

Key Takeaway

Most freelancers and gig workers have no access to any insurance due to the nature of their work. But this might be an issue if they ever get into work-related accidents or lose their technological assets due to disasters. If they don’t have enough savings, they might have to get into debt from banks and borrow money from their colleagues. This can be very stressful as they must pay the loan with interest. Therefore, freelancers like you must invest in an insurance policy to avoid these situations.