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The Riskier Side of Side Hustles

Many people pick up a side hustle for extra income and some popular choices include ride-sharing like Uber or Lyft – other people rent out their property. But these side hustles can come with a hefty price tag if you aren’t insured properly. Many home and auto insurances exclude covering these side hustles, and you can get into hot water if someone makes a claim against you.

Do you need automobile insurance for Uber or Lyft?

It seems obvious that you need car insurance to work as a driver for Uber or Lyft. But some auto insurance companies have a vehicle ride-sharing exclusion. This means that they won’t cover any liability, bodily injury, or property damage if the incident occurred during ridesharing.

While Uber and Lyft both offer some insurance coverage, you’ll want to double-check your car insurance to be sure that it covers you while working for Uber or Lyft as a driver.

Do I need automobile insurance for Turo? 

Turo lets you rent out your car to other drivers. While this could be a nice side hustle, it could be a headache if you aren’t properly insured. Turo doesn’t offer physical damage insurance to the host’s car. So, you’ll want to consider purchasing car insurance that will cover any possible damage.

What car insurance do you need if you deliver food or newspapers?

Personal car insurance may not be enough if you deliver food or newspapers. You may actually need to get commercial auto insurance to get properly covered in the event of an accident.

While Uber Eats may provide some coverage, a driver could financially benefit from having commercial auto coverage. The same goes for newspaper delivery drivers. 

Do I need homeowners insurance for Airbnb? 

Renting out your basement apartment on Airbnb sounds like a great side hustle option. However, there are homeowners who don’t realize that Airbnb may not cover the costs if their Airbnb rental gets damaged or someone gets injured.

An Airbnb host may want to purchase home insurance that will cover the worst-case scenario. Otherwise, you may end up with large bills to fix your property or bodily injuries.

What home insurance do I need if I’m renovating a property?

Another side hustle that is common is purchasing properties, renovating them, and then selling them at a higher price. This can be a lucrative side hustle, but it also has many risks. Anyone that has flipped a house can tell you that there is pretty much always an unexpected cost, but some of these costs could be recovered with insurance.

You may want to look into getting home insurance that can cover a variety of scenarios like theft, foundation collapse, or property damage. If you are doing the renovations yourself, you may also want to get builder’s insurance.

Get the insurance you need

If you are looking to start a side hustle, you should ensure that you have the proper insurance coverage, so that you don’t end up losing money. Auto or home insurance can get confusing, but we make it easy at Ross Insurance Agency. Want to work with one of the best insurance agencies in Lancaster, PA?

Please get in touch with us if you have any questions about getting the right insurance for your side hustle.