Commercial Insurance for Side Gigs

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Many people supplement their income in Berlin, CT by working side gigs. These gigs often involve driving for a ridesharing platform or renting out their homes through a bed-and-breakfast app. Like any business venture, these activities require commercial insurance. In this blog, we at Bogden Insurance Agency will explain the types of commercial insurance needed for the most common side gigs.

Ridesharing or Delivery Services

If you drive for Lyft, Uber, or other car services, or provide personal shopping and delivery through Shipt, DoorDash, GrubHub, etc., you need gap coverage. These platforms provide some insurance to cover their independent contractors’ liability. However, there are four phases in a driver’s day:

  • Offline
  • Available
  • En-Route
  • On-Trip.

When drivers log off and close the app, they enter the offline phase, during which only their personal insurance protects them. Once a driver signs in, the ridesharing or delivery platform’s commercial auto insurance protects them during the en-route and on-trip stages. This coverage applies from the moment they accept an assignment until they complete the delivery.

However, both Lyft and Uber have coverage gaps during the available stage, when a driver has the app turned on but hasn’t accepted an assignment. Adding ridesharing gap coverage ensures you’re protected during this phase, whether you’re transporting people or delivering groceries.

Short-term Rental Side Gigs

Those who earn a side income from Airbnb or Vrbo also need commercial insurance. A standard homeowners insurance policy doesn’t provide all the necessary coverage. If you’re renting out your entire home long-term, you’ll need a landlord policy. For short-term rentals, such as through Airbnb or Vrbo, you’ll need both short-term rental property coverage and home-sharing insurance. These policies apply when you host a guest and include a "No Forced Entry Requirement" for filing a damage or theft claim.

Contact Bogden Insurance Agency Today

Ensure your side gig remains profitable with commercial insurance coverage from Bogden Insurance Agency. Before you start your business in Berlin, CT, secure the appropriate commercial insurance to protect your financial security.